ST A T E O F L O U ISIA N A L E G ISL A T IV E A U D IT O R

Transcription

1 ST A T E O F L O U ISIA N A L E G ISL A T IV E A U D IT O R N orthw estern State U niversity N atchitoches,louisiana O ctober 30,2002 Investieative A udit D anielg.k yle,p h.d.,c P A,C F E L egislative A uditor

2 LEG ISLATIV E A U D IT A DV ISO RY C O U N CIL M EM BER S Senator J."Tom " Schedler,C hairm an R epresentative Edw in R.M urray,v ice C hairm an Senator R obertj.b arham Senator Foster L.C am pbell,jr. Senator I,ynn B.D ean Senator W illie L.M ount R epresentative R ick Farrar R epresentative V ictor T.Stelly R epresentative 3?.T aylor Tow nsend R epresentative W arren J.T riche,jr. D anielg.k yle~ph.d.,c PA,C FE R D aryig.purpera,c PA,C FE Underthe provisions ofstate law,this reportis a public docum ent. A copy ofthis report has been subm itted to the G overnor,to the A torney G eneral,and to other public oficials as required by state law. A copy ofthis reporthas been m ade available forpublic inspection atthe Baton Rouge and Shreveport ofices ofthe Legislative Auditorand atthe ofice ofthe parish clerk ofcourt. This docum entis produced by the Legislative A uditor,state of Louisiana,Post Ofice Box 94397, Baton Rouge, Louisiana in accordance w ith Louisiana Revised Statute 24:513. Seventy copies ofthis public docum entwere produced atan approximate costof$ This m aterialwas produced in accordance w ith the standards forstate agencies established pursuantto R.S. 43:31. This report is available on the Legislative A uditor's W eb site at In com pliance w ith the Am ericans Wtith Disabilities Act, if you need specia assistance relative to this docum ent,orany docum ents ofthe Legislative Auditor please contactw ayne "Skip"Irw in,diro ctorofadm inistration,at225/

3 N orthw estern State U niversity O ctober 30,2002 Investigative A udit O fi ce of the L egislative A uditor State of L ouisiana D anielg.k yle,ph.d.,c PA,C FE L egislative A uditor

4 Page Executive Sum m ary Background and M ethodology ] 3 Findings: Contractor Paid forservices N otprovided. Em ployeespaid forh oursn otw orked Recom m endations M anagem ent's Response Attachm enti

5 @ DAN IEL G.KYLE,PH.D.,CPA,CFE LEOISLATIVE AUDITOR OFFICE O F L EG ISLA TIV E A U D ITO R STATE O F LO U ISIAN A BATON ROU GE,LOU ISIAN A O ctober30, NORTH THIRD STREET POST OFFICE BOX TELEPHONE:(225) FACSIMILE: (225) D r.randallj.w ebb,president N orthw estern Slate U niversity N atehitoches,louisiana Transm itted herew ith isourinvestigative reportof the N orthw estern State U niversity. O ur exam ination w asconducted in accordance w ifh Title 24 of the Louisiana Revised Statutesand w asperform ed to determ ine the propriety of certain allegationsreceived by thisoffice. Thisreportpresents ourfindingsand recom m endations,asw ellasyourresponse. Copiesof tifs reporthave been delivered to the H onorable V an H.Kyzar,D istricta ttorney forthe Tenth JudicialD istrictof Lo uisiana,and otherauthoritiesasrequired by sla te law. SD P:SLC :D GP:dl Legislative A uditor

6 Investigative A udit R eport N orthw estern State U niversity Findings;(Seepages5 through 11.) C ontractor Paid for Services N ot Provided D r.alvin Brossette subm itted a fictitiousinvoice to the U niversity. The Ben D.Johnson EducationalCenterreceived $42,331thatitwasnot entitled to receive A Northwestern State University (University)Continuing Education D epartm entem ployee created a fictitiousinvoice atthe direction of hersupervisor,d r.a lvin Brossette. D r.brossette,dean of the U niversity'scontinuing Ed ucation D epartm ent,subm itted the fictitiousinvoice to the U niversity assupportfora contractthatthe U niversity w asm onitoring on behalf of the Sta te of Louisiana Departm entofeconomicdevelopment(ded).attached to the fictitiousinvoice w asa listof individualsthat supposedly received training through the contractw ith D ED. A lthough the training did nottake place,the University issued a chec k for$42,331based on the fraudulentinform ation subm itted by D r.brossette. A sa result,the Ben D.Johnson EducationalCenterrec eived $42,331thatitw asnotentitled to rec eive. D r.brossette subm itted a docum entthaiappearsto be falsified,and,asa result, D r.g lenn M ofettreceived paym entfor service she m ay nothave provided. M r.k evin N ora and D r.sherm an V ogelreceived paym entsforservicesthey did notprovide. Em ployeespaid for H ours N otw orked D r.brossette subm itted docum entsto the U niversity and file State oflouisiana DepartmentofLabor(DOL)thatappear to be falsified.a sa result,d r.g lenn M ofet,assistant professoratthe U niversity,received paym entforserviceshe m ay nothave provided. In addition,m r.kevin N ora, instructor,and D r.sherm an V ogel,assista ntprofessor, received paym ents forservices they did notprovide. M r.n ora stated thathe w asrequired to give a portion of his paycheck to D r.m offett.

7 N orlhw estem Stale U niversil Recom m endations(seepage 13.) The U niversity should ensure thatallgrant paym entsare properly and accurately docum ented. The U niversity should ensure thatem ployees actually w ork the num ber of hoursreported. W e reco m m end thatn orthw estern State U niversity im plem entpoliciesand proceduresto ensure thatallgrant expendituresare properly and accurately docum ented and to ensure thatem ployeesinclude only accurate inform ation on theirtim e sheets. The University should ensure thatall grantpaym entsare m ade in accordance w ith the term sof the grant. The U niversity should also ensure thatem ployees actually w ork the num berof hoursreported.policiesshould instructsupervisorsasto theirresponsibility to ensure that tim e sheetsare properly prepared and accurate. Finally,w e recom m end thatthe D istricta ttorn ey forthe Tenth Judicial D istrictreview thisinform ation and take appropriate legal action,to include se king restitution. M anagement'sresponse (See AttachmentL) M anagem entconcurs with the findingsand recom m endationsincluded in thisreport. M anagem entconcursw ith the findingsand recom m endationsincluded in thisreportand w illtake the follow ing actionsin response to the report: Enforce policiesand proceduresthatensure properand accurate docum entation of all grantexpenditures and ensure thatallgrant paym entsare m ade in accordance w ith the term sand conditionsof the grant Ensure thatem ployeesactually w ork the num berof hoursreported and thattheirtim e sheetsinclude only accurate inform ation to thiseffect Instructsupervisorsof theirresponsibility to ensure thattim e sheets are properly prepared and accurate Institute appropriate disciplinary action relative to em ployees Proceed to ta ke allappropriate legalactions

8 Northwestern State University (University)isa publicly supported institution of higher education.the University isa com ponentunitof the State of Louisiana,w ithin the executive branch of governm ent.the U niversity isunderthe m anagem entand supervision of the U niversity Board of Superv isors. The U niversity islocated in N atchitoches,louisiana,and serv esasa culturaland ed ucationalcenterforcentraland northw estlo uisiana. O n June 26,2002,D r.randallw ebb,u niversity President,notified the Legislative A uditorof the possibility thatatendance recordsfortraining sessionsatthe U niversity had been inflated, thuscausing an appearance of payrollfraud. W e acknow ledge the assistance provided to this investigative auditby PresidentW ebb and the staf ofthe U niversity'sintern alauditdepartm ent. The proceduresperformed during thisinvestigative auditeonsisted of(1)interviewing employeesand officialsof the University;(2)interv iewing otherpersonsasappropriate; (3)examining selected doeumentsand recordsofthe University;(4)making inquiriesand perform ing teststo the extentwe considered necessary to achieve ourpurpose;and (5)reviewing applicable stale law s. The results of ourinvestigative auditare the findingsand recom m endationsherein

9 Northwestern State University

10 Contractor Paid for ServicesN otprovided A Northwestern State University (University)Continuing Education Departm entenrp loyee created a fictitiousinvoice atthe direction of her supervisor,d r.a lvin B rossette. D r.brossette,dean of the U niversity's C ontinuing Education D epartm ent,subm itted the fictitious invoice to the U niversity as supportfor a contractthatthe U niversity w as m onitoring on behalf of the State of Louisiana D epartm entof Econom ic D evelopm ent (DED).Attached to thefictitiousinvoice wasa listofindividualsthatsupposedly received training through the contractw ith D ED. A lthough the training did nottake place,the U niversity issued a cheek for $42,331 based on the fraudulentinform ation subm itted by D r.b rossette. A s a result,the B en D.Johnson E ducationalc enter received $42,331 thatit w asnotentitled to receive. In June 1998,the U niversity entered into an agreem entw ith D ED to m onitora w orkforce developm entand training contract(co ntract)with Alliance Compressors.The originalamountof the contractw as$122,669 and the purpose w asto provide training fora lliance Com pressors' new employe s.(see excerptfrom contractbelow.) The contractrequired thattraining be provided through the Ben D.Johnson EducationalCenterin N atchitoches. The co ntractfurther provided thata lliance Com pressorssubm itreportsto the U niversity'scontinuing Education D epartm entdetailing progresstow ard the training objectives.theuniversity was given the responsibility of disbursing the fundsto pay for the training.d r.a lvin Brossette,dean of the Continuing Edueation D epartm ent,m onitored the contracton behalf of the U niversity A liance Compressorsisrequesting a~istancein theamountof$122,669 to providetra~ for130new employeesattheirplantinhatuhitoehes.thist~almrt8 wilinvolvejob peoifies~ltatrodteam b~ikt~ng bam lonthesaturncorporation program.t~y arealso requesting m tstenee i~ b~ildln8 theba~ tcatleml~ekiltsof 60 new hiret These t~dlswivbe taughtthrough theben Johnson Edueetiond Center ianltcltitoch~ Tim d~staughtmm bringthe~ucttioatliv*6 ~ftlxtlttm#~t~ up one 8r~ e~jt~cel. Alliance Com pressorsused $80,338 to train the 130 new em ployeesincluded in the grant.the rem aining $42,331wasto be paid to the Ben D.Johnson EducationalCenterforbuilding the basic academ ic skillsof 60 new hires. D r.b rossettc subm itted a letter to D E D stating that56 individuals com pleted training and developm ent atthe B en D. Johnson EducationalC enter. O n June 16,2000,D r.brossette subm itted a letter to D ED stating that56 individualshad com pleted training and developm entatthe Ben D.Johnson EducationalCenter. The Ben D.Johnson

11 Northwestern Stale University EducationalCentersubm ited an invoice to the:u niversity dated July 6,2000,in the am ountof $42,331fortraining in academic skils.(see h~voice below lefl) However,theUniversity refused to pay the invoice because the originalcontractw asw ith A lliance Com pressors. On August8,2000,Alliance Compressorssubm itled an invoice to the University for$42,331.(see invoice below right) Both invoicesincluded a listof 56 nam esthatparticipated in training classesbetw een M ay 1998 and N ovem ber1999.o n August17,2000,the U niversity issued a check to A lliance Com pressorsto pay forthistraining. The check w asprim arily endorsed by A lliance Com pressorsand w assecondarily endorsed "Ben Johnson." invoice Invoice Numbor1 Dale:August8,2000 TO:NOrlhweSter~elateI./r~lverslsy DepartmentofGo~t~nulrl9 Edo~at~on W l~fia m ~,on Flail,R~ m 201 Natelal~oehe$,L~ AlianceCompressors 100 IndustrialDrive Natehltoches,La (318) ~ lp lo:(i~d~lomntaddress) l~i,ea~c~aw-~i,jr. 'v b~ The B en D.Johnson EducationalCenter did notactually traia the 56 individualsaspart of the D ED contract. O f the 56 nam esincluded on tile tw o invoices,36 actually received training from the B en D.Johnson Ed ucationalcenterthrough a separate grantfrom the D epartm entof Social Services(DSS).ThisDSS grantwasalso monitored by Dr.Brossette on behalf ofthe U niversity. The datesof training provided by the Ben D.Johnson EducationalCenterforthis grantw ere exactly the sam e asthe datessubm ited to D ED. The Ben D.Johnson Educational Centerreceived $19,237 from the D SS grantfi3rtraining these 36 individuals. M s.l ora H ayesstated that D r.b rossetle instructed her to type the listof 56 nam es subm itted to D E D and the U niversity using nam esthat had been previously trained through D SS grants. The listof individualsincluded w ith the invoice w as prer~ared by a U niversity em ployee. M s.lora H ayes, accounting specialistforthe Continuing Education D epartm ent,stated thatd r.brossette instructed herto type the listof 56 nam essubm ited to D ED and the U niversity using nam esthathad been previously trained through D SS grants. M s.hayesfurtherstated thatd r.brossette instructed herto prepare th e original invoice subm ited to the U niversity in the nam e of the Ben D.Johnson EducationalCenter.

12 Finding The invoice subm itted to the U niversity by A lliance Com pressorsw asfraudulent.d r.brossette stated thatthe $42,331paid to the Ben D.Johnson EducationalCenterw asactually reim bursem entforcom puters thatw ere purchased fortraining A lliance Com pressors' em ployees. D r.brossette furthersta ted thatm r.jef R isinger,form era lliance Com pressors' em ployee,gave him the listof nam esthatw ere subm itted to the U niversity. M r.r isingersta ted thathe w asnotaw are of any listsubm ited to the U niversity. M r.r isinger furtherstated thatthe $42,331wasto reim burse the Ben D.Johnson EducationalCenterfor com putersand softw are.m r.risingeradded thatthe Ben D.Johnson Ed ucationalcenterneeded to be reim bursed and A lliance C om pressorsw asthe conduitforthe reim bursem ent. A check register from the B en Johnson E ducationalfoundation show s thatthree cheeks totaling $6,336 w ere issued to D r.b rossette. ItappearsD r.brossete w asalso an em ployee of the Ben D. Johnson EducationalC enter. Therefore,D r.brossette w asthe em ployee of tw o partiesto the contract,the service providerand the independentm onitor. A check registerfrom the Ben Johnson Ed ucationalfoundation show sthatthree checkstotaling $6,336 were issued to D r.brossete during the period June 30,2000,through A ugust30,2000. These w ages w ere reported on the Ben Johnson Educational Foundation'squarterly w age report to the D epartm entof Labor. In addition,w e obtained Bc~jo~s,~n~ ucjlk~nelg~ V,O.~ x155sshigh~ ~4 Natch,to:h~~,LA ~eav orl~i Po Box~ o A lvin ~ rosselle,jr.,d irector Ben Johnson EducationalCenter P.O.Box H ighw ay 84 N atchitoches,la ~'ei~ ite~i~ed~r~ ~re~ e*si~g5'~l~plicatioa ~ ~Cl~,sA Ch[IdI~),Cm C(ntcrlce~.Vo~ li~nsccjlb~ ocd~ n ~ nri~ dlhelyoum sgm h fo o~ n~u~ enls (I) ChildDayCmreCenlerClesA Mlnimom Standards; (2) Statefiret-odetofeeOf~t~eH~ Marshal); (4;, Sl~)~health~ e(onl~~ofpub)ichcahh,$)ni~ it~se~l~ ); O) Zon(ng(ifl~]kcabl~iny~ 1~ ); (6j~ 'F~ ereferen~ onlhedirects, (?~ pit)~ ntoffujiiice~sur~f~,i~ s~rcfeesa~ ba~d~ *pp'~ d~apc~lt~ofth~center (The$)$.QQinlIinlt~.plica6on1~~II~p$ie~(.~ll~[he{u~lm~c~s~ ~1~.leIC~lss~,Ch~ch TheMLnimum Slmndard~f~ eithercla)~a ~ Cbs~ B Chl)dI~,Ca~ Cen~ any bepu~hn~dfl~ m~sof,~f~.feeofss,o~~c~re.de~).hieonly,.~eibm,or*c~rl~fi~ ch~ ormo~yorder. " lh~~tltf~($r.h~kozm~ yorderisiob(n~d~pc)abletothe~ ntl~nlo~socialse~i~s. ~1.~ k)id~,i~ ~tl~15t~jig [uii~~ latbtg~ralioiof~ r~nler~ti~ to~ ~lving)~ur Ik~n~ LA,R.S46:1~01e(Rqstet~ lhlti)lcmi~ct~ Flcifitie~githinclu~'~Dly CareCenltn m r~0uk~dtob~licensed A I'dela)thl~o.lcratcs~ilh~ta~tlidtlecn~ iss~jt~~toa~l)fines,is~~1m posibl~idyll~c~ioo~snhingin16~ncli~~~)~efiopre~en~theibcil;tyf~ conlindlngthe~ioleli~ r~mliasltven~,di~ lot TS/~~ num erousdocum entsfrom the B en Johnson EducationalFoundation w hich suggestthatd r.brossette w asa directoror adm inistratorof the Ben Johnson EdueationalFoundation. These docum entsinclude an application w ith D SS to obtain a license to operate a day care facility. D SS acknow ledged this application by sending a letterto Dr.Brossette asthe director.(see letter above.)

13 N orlhwestem State University D r.brossette m aintainsthathe hasneverbeen paid by the B en D.Johnson Foundation. D r.brossette slated thathe isnota directorof the day care facility and only puthisnam e on the D SS application to speed up the process. These actionsindicate a possible violation of one orm ore of the follow ing law s R.S.14:26,"Conspiracy''1 R.S.14:133,"Filing False Public R ecords''2 R.S.14:67,"Theft''3 R.S.14:134,"M alfeasance in O fice''4 R.S.42:1111(C)2(d),"Prohibited Compensation'5 Theactualdetermination asto whetherany individualissubjectto formalcharge isatthe discretion of the districtattorney. Em ployees Paid for H ours N ot W orked D r.brossette subm itted docum ents to the U niversity and the State of Louisiana Departmentof Labor(DOL)thatappear to be falsified.asa result,dr.glenn M offett, assistantpr~ es~,~r at~he U ~P:ersR~,reeelveO,p~ym e~t for services he m a~,~ have provided. In addition,m r.k evin N ora,instructor,and D r.sherm an V ogel,assistant professor,received paym ents for servicesthey did notprovide. M r.n ora stated thathe w asrequired to give a portion of hispaycheck to D r.m offett. The U niversity adm inisterstw o grantsford O L to fund an Incum bentw orkerstraining Program (Program)atAlliance Compressorsand ConAgra Poultry.These tw o grantsarealso adm inistered through the U niversity'scontim ling Education D epartm ent. In M ay 2001, D r.m ofettbecam e the coordinatorforthe pn~gram atthe requestof D r.brossette. ir. S.14:26 provides,in part,thatcriminalconspiracy istheagreementorcombination oftwo ormore personsforthe specific purpose of COmmitting any crime;provided thatan agreementorcombination to commita crime shallnotamountto a eritninalconspiraey unless,in additionto such lgreementorcombination,oneormoreofsuchpartiesdoesanactin furtheraneeoftheobjectoftheagreementorcombination. 2n.S. 14:133 provides,in part,thatfiling false public recordsisth e filing ordepositing forrecord in any public offlee orwith an y publicofi cial, orth e m ain taining asrequired by law,regulation,orrule,with knowledge ofitsfalsity,any"forged docut~ael~t,any wrorlgfully altered docum ent, orany docum entcontaining a false statem en torfalse representation of a m aterialfact. 3n,S.14:67 provides,in part,thattheft isth e m isappropriation ortakthg ofanything of value which belongsto anoth er,eitherwithoutthe consentofthe otherin the misappropriation ortaking,orby m eansoffraudulentconduct,practices,orrepresentations, 4R.S.14:134provides,in part,thatmalfeasancein ofi ce iscommited when an y publicofficerorpublicemployeeshall(i)intentionally refuse orfailto perform any duty lawfully requiredofhinhassuch oficeroremployee;(2)intentionally perform any such duty in an unlawfulmamler; or(3)kraowingly pe rmitany otherpublicofficerorpublicemployee,underhisauthority,to intentionally refuseorfailto perform any duty lawfu lly req uired of him orto perform any such duty in an unlawfulmamaer. sr.s.42:1111(c}2(d)provides,in part,thatno public servantsh~ljvceive anylhing ofeconomicvaluefororin consideration ofservices rendered from any pe rson forwhom such publicservantwould be prohibited from reeeivirlg agift.r.s.42:1115 prohibitspublic servantsfrom receiving a giftfronlanyone who hasa businessrelationship with th eiragency.

14 O n June 13,2001,and July 24,2001,D r.m offettsubm itted separatetime sheetsclaiming atotalof 90 hours(60 hoursand 30 hours,respectively)worked and received payanentof $10, orapproxim ately $122 perhour.these tim e sheetsw ere initialed by D r.m offettand signed asapproved by D r.brossette. O n Septem ber28,2001,d O L sentan e-m ailto a University em ployee stating thatthe m axim um rate of pay plus fringe D r.m offettw as paid $10, or approxim ately $122 per hour for a totalof 90 hours. benefits on these two grantswas$27.50 on one and $31.25on the other. A sa result,on O ctober9,2001,d r.brossette subm itted a letterto D O L stating thatthe originaltim e she tscontained "...m isinterpretationsof the hoursintended " (See letter below.) Dr.Brossete'sletterstatesthatthe totalhoursworked on these two contractsshould have be n 368 instead of 90. Attached to thisletterw ere new tim e sheetsford r.m ofettthat w ere signed by D r.brossette. Therefore,itisnotclearhow m any hoursd r.m offettw orked or w hetherhe provided services com m ensurate w ith the pay he received. Itdoesappearthat D r.m ofettw aspaid excessively forthe num ber of hourshe originally reported and histim e sheetsw ere falsified. I)r.M offettslated thatm s.h ayes originally told him thathe could only getpaid for30 hourson the tim e sheetdated July 24,2001. A ccording to D r.m offett, M s.h ayeslatersaid thathe could getpaid for128 hours. D r.m ofett sta ted thathe w orked m uch m ore than the num berof hourshe reported. D r.m offettalso stated thathe doesnothave any docum enta tion to supportthe actual num berof hourshe w orked. l)r.m ofettadded thathe doesnot ne d thisdocum entation because he hasa photographic m em ory.

15 Northwestern State University In M arch 2002,D r.m ofetthired M r.n ora to serve asan instructorforthe program. M r.n ora'spay w asbased on the num berof studentsthatattended the classeshe taught. A ccording to M r.n ora,nam esw ere added to the attendance sheetsafterhe turn ed them in to D r.m ofet.based on interview sof the students,on 40 occasionsnam esw ere added to the attendance sheetthough the students w ere not presentforthe class. M r.n ora'spay consisted of $33.33 for M r.n ora states that nam es w ere added to the attendance sheetsaft er he turned them in to D r.m offett. each unitoftraining provided. O ne unitoftraining co nsists ofthree hoursperstudent. M r.n ora w aspaid for40 units or120 hoursof instruction thathe did notprovide. Therefore,M r.n ora received $1,333 thathe wasnotentitled to receive. A ccording to M r.n ora,w hen he received hisfirst M r.n ora stated that D r.m offett paycheck,dr.m ofettstated thathe (M offett)was asked for half of hispaycheck. supposed to gethalf of the check.m r.n ora stated M r.n ora claim sthathe gave thathe need ed the m oney and could only afford to $1,000 cash to D r.m of ett. give Dr.M offett$500 from thatcheck.m r.nora furthersta ted thatd r.m offettalso asked forhalf of hissecond check.a ccording to M r.n ora,he gave Dr.M offett$500 from the second check.therefore,m r.nora claim sthathe gave $1,000 cash to D r.m ofet. M r.m ofettsta ted thathe neverasked M r.n ora forany m oney. U niversity policy allow sfaculty to be paid up to 25% above theirregularsalary perfiscalyear forproviding extra serv ices. D r.m offettreached this25% lim itin M ay 2002 related to his coordinatorposition w ith the program.d r.m offet recom m ended thatd r.v ogelassum e the dutiesof coordinatorof the program. D uring the period M ay 2002 through June 2002, D r.vogelw aspaid $7,520 for360 hoursof w ork D r.v ogelstated thaihe did A ccording to D r.v ogel,he did notactually w ork notw ork allof the hoursthat allof the 360 hoursthathe reported on histim e he reported on histim e sheets. she ts. Though D r.v ogelsta ted thathe did not w ork allof these hours,he co uld notquantify the actu alnum berof hourshe w orked.furtherm ore,d r.v ogelcould notprovide any docum entation to substa ntiate the am ountof tim e he actually spentcoordinating the program. D r.v ogelsta ted thathe w ould be w illing to pay the m oney back.d r.v ogelstated that D r.m ofettinstructed him to report360 hoursof w ork.d r.brossette approved D r.v ogel'stim e sheet. A ccording to D r.brossette,d r.v ogelw orked the num berof hoursreported.

16 Finding These actionsindicate possible violation of one orm ore of the follow ing law s R.S.14:67,"Theft''6 R.S.14:133,"Filing False Public Records''7 R.S.14:134,"M alfeasance in O ffice''8 Theactualdetermination asto whetherany individualissubjectto form alcharge isatthe discretion of the districtattorney. 6R. S.14:67 provides,in part,thatthefi isthe misappropriation ortaking ofanything of value which belongsto another,eitherwithoutthe consentofth e otherto the m isappropriation ortaking,orby m eansoffraudulentconduct,practices,orrepresentations. 7R.S.14:133provides,h~part,thatfiling falsepublicrecordsisthefiling ordepositing forrecordin any publicoffice orwith aly publicofficial. orthemaintaining asrequired by law,regulation,orrule,with knowledgeofira falsity,any forgeddocunlel~t,any wrongfully altered document, orany d~ um eltcontaining a false statementorfalse representation ofa m aterialfact. sr. S.14:134provides,in part,thatmalfeasancein office iscommitted when any publicoficerorpublicemployeeshall(1)intentionally refuse orfailto perforn~at1),dily lawfuly required ofhlm,assuch officeroremployee;(2)intentionally perforln any t;ueh duty in anunlawfulm~alner; or(3)knowingly permitany otherpublicofficerorpublicemployee,underhisauthority,to intentionaly refuseorfailto perform an y duty lawfully required ofhim orto perform an y such duty in an unlaw fulm~nner. 11

17 12 N orlhw estem Stale Universit

18 R eco m m enda tio ns W e recom m end thatn orthw estern State U niversity im plem entpoliciesand proceduresto ensure thatallgrantexpendituresare properly and accurately docum ented and to ensure thatem ployees include only accurate inform ation on theirtim e sheets. The U niversity should ensure thatall grantpaym ents are m ade in accordance w ith the term sof the grant.the U niversity should also ensure thatem ployeesactually w ork the num berof hoursreported. Policiesshould instruct supervisors asto theirresponsibility to ensure thattim e sheetsare properly prepared and accurate. Finally,w e recom m end thatthe D istricta ttorney forthe Tenth JudicialD istrictreview thisinform ation and ta ke appropriate legalaction,to include seeking restitution.

19 14 Northwestern State University

20 A ttaclhm e nt I M anagem ent's R esponse

21 N ORTHW ESTERN S ta te U n iv e r s ity A M tmbor~ tim UJlverllt~ *4[L~ I~LQuo ItMam N mlc lllo ~10e), L o e lllol lm 7 141T O ffice of the Fresidcn! Telephone(318) I Fax (318) O ctober 22,2002 D anielg.k yle,c PA,C FE O fi ce of Legislative A uditor State of Louisiana 1600 N orth Street Baton R ouge,la R e: Investigative A uditr eport D ear D r.k yle: N orthw estern State U niversity concursw ith the findings and recom m endations contained in the investigative audit report prepared by the O ffice of the L egislative A uditor. T his problem w asbrought to the attention of m anagem ent by university em ployees,atw hich tim e an internalaudit revealed findings that w ere reported to the O ffice of the Legislative A uditor. The university w illnot tolerate abuse of the public trust and w ill initiate the follow ing actions in response to the report: * Enforce policies and procedures thatensure properand accurate docum entation of allgrantexpenditures and ensure thatallgrant paymentsare made in accordance with the termsand conditionsof the grant;. Ensure thatemployees actually work the number of hours reported and thattheirtime sheetsinclade only accurate information to this efect; ~ Instructsupervisorsof theirresponsibility to ensure thattimesheets are p rop erly prepared and accurate; ~ Institute appropriate disciplinary action relative to employees;and ~ P roceed to take allappropriate legalactions. If you require additionalinform ation,please feelfree to contactm e. Sincerely, President ebb R JW /lm