GET DAILY REPORT FREE
A recent audit for the 2022 fiscal year found that three BREC employees were incorrectly paid approximately $42,000 in final payroll termination payments, violating the state constitution.
The audit, conducted by EsnerAmper and submitted to the Louisiana Legislative Auditor last week, identified two instances of incorrect payments.
BREC, which manages the city-parish’s parks and recreational facilities, had not submitted an audit since 2020 until the 2021 audit was released last August. The 2020 audit was released in November 2021.
The audit report attributed the errors to a transition in payroll systems, which lacked proper procedures and controls for accurate final payroll termination payments. Although BREC recouped the funds, the erroneous payments initially were identified by a third party.
In response, BREC established exception reports within its new financial software to validate separation payments outside of regular working hours.
The agency will document these reports and ensure that verification, mutual agreement and approval from human resources and finance are required before any separation payments are made.
Other issues cited in the audit include:
- BREC failed to file the 2022 audit within the required six-month period after the fiscal year ended.
- The agency did not reconcile its bank account statements, payroll benefit liabilities, and inventory records in a timely manner.
In an August presentation to the Metro Council, BREC Superintendent Corey Wilson assured council members that the agency aims to complete all pending audits, including the 2024 audit, by June 30. In December, COO Andrea Roberts told Daily Report that BREC is working to schedule the 2023 audit as soon as possible, citing both internal and external factors for the delays. Additionally, BREC hired Don Johnson as its second CFO last June.
The organization issued a brief statement on the timeline of its future audits.
“BREC continues to work closely with its independent audit firm to complete the 2023 audit, which remains actively underway,” the statement reads. “We remain on track to finalize all outstanding audits this year.”
