The LSU System failed to immediately notify the Louisiana Legislative Auditor’s office and the East Baton Rouge Parish district attorney’s office of several suspected misappropriations of assets, a recent audit of the system found.
The system is required to immediately notify the LLA and the parish DA of such misappropriations by state statute.
Below are the issues cited in the audit:
- LSU’s Office of Internal Audit completed an investigation into possible financial misconduct and finalized a report that was sent to LSU management on Oct. 24, 2022, but LSU management did not report its findings to the LLA and the DA until Sept. 18, 2024.
- LSU did not notify the LLA or the DA about an internal investigation into an allegation that an employee was repeatedly absent from work without approved leave.
- LSU did not notify the LLA or the DA about an internal investigation into an allegation that an employee failed to disclose and report outside employment and performed outside duties during his normal working hours without approved leave.
- Auditors identified multiple notices of theft of movable property that were reported to the LLA and the DA over two years after police reports were provided to the university by the LSU Police Department.
According to the audit, failure to immediately notify the LLA and the parish DA of suspected misappropriations of assets “impairs a timely response to control weaknesses” and could delay the potential prosecution of guilty parties.
The audit also found that LSU’s financial statements are fairly stated.
From fiscal year 2023 to fiscal year 2024, the university’s total operating expenses increased by 1.2%; total operating revenues increased by 4.8%; and nonoperating revenues, other revenues and gains increased by 1.7%.
Over that same period, the university reported an average increase in net tuition and fees of 8.9% as well as an increase of 13.1% in state appropriations.
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