Release: Town of Jean Lafitte
Daryl G. Purpera, CPA, CFE
A former employee of the Jefferson Parish town of Jean Lafitte allegedly misappropriated approximately $23,000 in cash receipts from the municipality in a 28-month period between June 2011 and October 2013, according to a report released Monday by Legislative Auditor Daryl Purpera.
The audit report, issued by the Metairie certified public accounting firm of Carr, Riggs and Ingram, LLC did not identify the former worker. The report said the missing funds included cash receipts for traffic fines, rents and regulatory licenses.
The misappropriation was the result of the town worker “only depositing a portion of the week’s receipts into the town’s bank account,” the report for the state auditor said. The majority of the misappropriations occurred in the 2013 fiscal year which ended June 30, 2013.
The report said money was discovered missing during a periodic analysis of revenues by Jean Lafitte officials. “The town is attempting to recover its losses through its insurance coverage and/or repayment from the former employee,” the audit report said.
In its response, Jean Lafitte officials said they will ensure that there are proper separation of duties over cash receipts and that the controls are followed by all employees. The response also said that all cash deposits will be reconciled weekly with cash receipts.
The report also said that the town’s capital projects fund ended the 2013 fiscal year with a deficit balance of $3.15 million. Jean Lafitte officials said that as the capital projects are finished, they will move money from the general fund to the capital projects fund to cover the deficit.