GET DAILY REPORT FREE
In the first audit released of BREC in nearly three years, an independent auditor describes three instances of misappropriation on BREC funds for the 2021 fiscal year, including one employee using a company card to make nearly $67,000 in personal purchases.
The findings come as BREC has begun its promotional campaign asking voters to renew 10-year capital improvements and Improve Your Parks milages in November.
The agency, which manages the city-parish’s parks and recreational facilities, previously submitted an audit each year dating back to 1997 until 2020. The last audit submitted, however, was for the 2020 fiscal year, which runs from Jan. 1 to Dec. 31 for the department, in late November of 2021.
Earlier this year, BREC officials told Daily Report that the department had experienced a combination of “uncertain events” that led to the delay of filing recent years’ audits, including challenges with new software, staffing shortages, an untimely death and an ownership change impacting the department’s contracted auditors.
In the audit released Monday by the Louisiana Legislative Auditor’s office, spanning from Jan. 1 to Dec. 31, 2021, auditors list three instances of misappropriation as well as a handful of other findings. The report—conducted by EisnerAmper—comes after the agency received “the cleanest rating” it could garner in both 2018 and 2019.
A special facilities manager was found using a company card to make personal purchases, according to the report. It’s estimated the employee spent $66,705 from January 2018 through June 2023. No formal charges were made against the employee, who resigned and paid nearly $21,000 in restitution.
In another instance, a center supervisor misappropriated $3,269 from June 2019 through July 2021, which led to formal charges being filed with the East Baton Rouge Parish Sheriff’s Office.
The audit notes the agency was supposed to file the 2021 audit by mid June of 2022, and also failed to amend its Special Revenue Enhancement Fund budget when actual expenditures were expected to exceed budgeted expenditures by 5%, as state law requires.
Other findings in the report detail how BREC failed to reconcile its bank account statements, payroll benefit liabilities and inventory records in a timely manner. The report also says BREC lacked written policies and procedures for determining allowable costs and compliance with federal procurement regulations required for federal grant.
