Former LARC Clerk Accused of Not Depositing Agency Funds

Approximately $102,000 in cash that was in the custody of a former accounts receivable/accounts payable clerk for the Lafayette Association for Retarded Citizens, Inc., commonly known as LARC, was never deposited into the agency’s bank account, according to an audit report issued Monday by Legislative Auditor Daryl Purpera’s office.

The audit, for the fiscal year ended June 30, 2014, was performed by the certified public accounting firm John S. Dowling & Company of Opelousas.

The former clerk, whose name was not included in the report, is no longer employed by LARC. The Lafayette Parish District Attorney is currently investigating the matter.

According to the audit released by the state auditor, the missing funds came to light in early 2014 when LARC’s director of finance became aware that certain self-generated and fundraising cash receipts had not been deposited into the agency’s bank account. It was determined during a subsequent internal investigation that approximately $102,000 in cash that was in the former clerk’s custody had not been deposited.

Once the internal investigation was complete, LARC notified the District Attorney and Legislative Auditor. The agency also filed a claim with its insurance provider. LARC management said in the report it has developed an appropriate internal control structure to ensure that no single individual controls all facets of its accounting system, and that management supervision is integrated as part of the control process.

The missing cash was one of four findings noted in the report. The other three findings pertained to inadequate segregation of duties within the accounting system; bank reconciliations for the operating account not agreeing with the general ledger balance for several months during the fiscal year; and the audit report not being completed within six months of the close of the June 30, 2014, fiscal year, as required by state law.

Based in Lafayette, LARC serves people with intellectual and developmental disabilities within an eight-parish area of southwest Louisiana. LARC’s services include community support and services, residential services, vocational services, and operation of Acadian Village in Lafayette.