Shreveport’s LSU Financial Audit Exposes Serious Management Failures

Shreveport’s LSU Audit Reveals Major Financial Failures

Shreveport, Louisiana — LSU Shreveport has recently come under scrutiny following the results of a financial audit conducted by the Louisiana Legislative Auditor’s Office. Covering the period from July 1, 2022 to June 30, 2023, the audit revealed three significant failures in the university’s financial operations that raise serious concerns about its management practices.

Audit Findings

The audit highlighted three key issues: ineffective bank reconciliations, noncompliance with timekeeping record requirements, and incidences of cash theft from the athletics department. These findings mirror previous audit results, suggesting that LSU Shreveport has not sufficiently addressed ongoing financial discrepancies.

With regard to the bank reconciliations, the audit reported an unexplained difference of $167,800 between the university’s cash balance in its accounting systems and the actual bank balance. Auditors noted a backlog of reconciling items from as far back as January 2022 that remains unresolved. Among these discrepancies were $1.8 million in transactions recorded but missing from the bank statement, plus $1.7 million in bank deposits not reflected in the university’s records. A notable example includes deposits related to Pilots Pointe Apartments amounting to $69,292 that cleared the bank but were not recorded.

Timekeeping Noncompliance

The second issue dealt with noncompliance in employee timekeeping records. The auditors analyzed a total of 4,972 payroll records and found that 8% of them (381 records) were not certified by employees as required within a 30-day window following the payroll period. The delays in time record certifications averaged 64 days and spanned from 31 to 424 days, raising questions about proper employee timekeeping practices.

Thefts in the Athletics Department

Lastly, the audit identified two separate incidents of cash theft within the athletics department, estimated at approximately $8,850. The first incident occurred in October 2023, when $850 in cash was reported missing after being left unsecured in a desk drawer. An investigation into the theft was conducted, but no suspects were identified and the university did not enhance cash security protocols.

The second theft was uncovered in April 2024, when a former employee notified management that cash previously stored in a safe was missing. A review revealed that no cash deposits had been made between November 2023 and April 2024, despite numerous sporting events taking place during that timeframe resulting in potential cash sales. Interviews during the investigation estimated that about $8,000 may have been stolen from these cash receipts.

Management Response

The management at LSU Shreveport has acknowledged these issues, mentioning that they believe many of the discrepancies in bank transactions offset each other. However, they admitted a lack of sufficient information to properly clear the inconsistencies from their records. Furthermore, they noted their intention to improve internal controls surrounding payroll and cash management.

The findings from the audit serve as a wake-up call for LSU Shreveport, emphasizing the urgent need for management enhancements and compliance measures to rectify these ongoing issues. As the university moves forward, its commitment to addressing these findings will be closely monitored by state officials and stakeholders.