The Lafayette Parish School System's annual audit report is in, and accountants found several instances in which they say the system didn't comply with state law.
LPSS responses indicate reasons for the findings listed in the audit. If you want to read the audit, as well as the LPSS responses to each finding, scroll down. The findings start on page 176.
"Four deficiencies in internal control were disclosed during the audit of the financial statements. Three deficiencies were considered to be material weaknesses and one deficiency was considered to be a significant deficiency," the auditors wrote.
Among the findings was a repeat finding, which has been noted since 2006, about school activity funds and principals' failure to enforce policies and procedures that apply. The system provided a detailed response that lists the efforts being made at the parish level, including audits, to address the issue.
The recent findings, all listed as first being noted in 2024, opine that the board did not comply with state laws that require certain purchases to be bid, that require budget revisions and that require proper handling and inventory of assets.
In one finding, auditors said the board did not properly amend a budget after there was a revenue shortfall that exceeded 5 percent. In their response, LPSS officials said the shortfall was related to one item that wasn't updated, and said a plan is in place to split special revenues into two budgets based on source. That should ensure better accounting, they say. Additionally, they said three accountants quit during the time period in question, requiring a distribution of their work to other accountants.
In another, auditors noted that the system is required to follow a state law that requires a list be maintained of all land, buildings, equipment and other fixed assets, and to document what happens to those assets. But auditors couldn't find some assets in the warehouse, and there wasn't anything documenting that other assets had been disposed of according to law.
In their response, LPSS officials said some staff need better training, and added that future auctions will be properly itemized.
Lastly, auditors found an issue with a contract to upgrade elevators.
"The School Board had a contract for an elevator upgrade project that was greater than $250,000. The project was not properly bid. The School Board also had four instances where projects were performed at various locations and not aggregated together, therefore, quotes were obtained for the projects instead of the projects being properly procured using bids," auditors wrote.
The result was that LPSS was not in compliance with the bid law multiple times, auditors wrote.
The LPSS response states that similar projects will be bid out in the future.
"As an example, prior staff at the time treated a particular project as a Professional Service instead of a Public Work. The nature of the service appeared to be service related, but because the project costed more than 8250,000, the auditors believe the project should have been bidded out. Our current Director of Facilities is aware of the project including the circumstances around it. Going forward similar type projects may be bidded out unless circumstances warrant a different process," the LPSS response states.
Auditors found no issues with their check of class size in ten classrooms, but found problems when they checked personnel information that was sent to the state department.
Of the 25 files checked, seven had the wrong number listed for the employee's years of experience, and in another test of 25 files, 14 were found to have incorrect figures for the employee's extra compensation, auditors found.
The management's discussion of the report starts on page 5.
"The School Systern's liabilities and deferred inflows exceeded its assets and deferred outflows at the close of the fiscal year resulting in a deficit net position of S101,167,861. Of this amount, $180,615,144 was net investment in capital assets which included 2 new schools and a third under construction, $28,363,417 was restricted for teacher salaries and benefits, in accordance with the dedication of a sales tax approved by voters in 2001, and $70,005,112 was restricted for debt service for the various Sales Tax Bonds and other Bonded Debt," the discussion states.
Here's the report:
