(The Center Square) − An independent audit of the St. Mary Parish School Board uncovered financial mismanagement, including the theft of more than $205,000 from student funds and failure to comply with state budget regulations.
According to the report, school board officials discovered that a bookkeeper at Patterson High School had been diverting cash from the Student Activity Fund for personal use between 2020 and 2024.
Documentation showed numerous discrepancies between recorded receipts and actual deposits. The employee, who is no longer with the district, was arrested in December following an investigation by the St. Mary Parish Sheriff’s Office.
The audit identified weaknesses in the School Board’s internal controls that allowed the theft to go undetected.
The bookkeeper had sole control over handling and depositing cash receipts, and bank reconciliations were not performed in a timely manner—at one point going nine months without review. High employee turnover further exacerbated oversight failures, the report found.
“No restitution has been made, but the school board has filed an insurance claim,” the audit stated. It recommended that the district implement stricter oversight procedures, increase internal audits, and improve financial training to prevent similar incidents.
In response to the findings, the school board has implemented several measures to strengthen financial oversight. It has changed accounting systems at all schools with the goal of eventually going cashless.
The new system restricts bookkeepers’ capabilities, shifting certain financial functions to the district level. Management will also require schools to submit monthly bank reconciliations and will hold them accountable for delays.
Additionally, a newly appointed employee is now reviewing all fundraiser reconciliations and gate receipts, and bookkeepers are no longer permitted to write checks for gate change to themselves.
In addition to the theft, the audit found that the school board failed to amend its Elementary and Secondary School Emergency Relief Fund budget when actual revenues fell more than 5% below the projected amount, a violation of Louisiana’s Local Government Budget Act.
The board received $43.7 million in federal pandemic relief grants under the CARES Act but had only earned $35 million as of June 30, 2024. The audit found that the board had failed to adjust its budget accordingly, leaving a significant discrepancy. The original ESSERF budget projected $22.3 million in revenue, while actual revenues amounted to just $13.8 million.
Management reportedly believed the budget should be prepared based on the grant period rather than the fiscal year, leading to the oversight.
Going forward, the school board stated that all budgets will align with the fiscal year rather than the grant period. Budget-to-actual figures will be monitored throughout the year, with amendments made as necessary.
The audit also found that the school board failed to include required provisions in contracts related to federal awards. Officials stated that, because most of the district’s projects are not federally funded, staff and outside engineers were unaware of the federal procurement requirements.
In response, the school board will conduct a comprehensive review of all active contracts funded by federal awards and revise its procurement policies to ensure compliance. Future contracts will include the necessary clauses, such as Equal Employment Opportunity provisions and Davis-Bacon Act requirements where applicable.
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The findings highlight ongoing financial oversight challenges for the school board, raising concerns about the management of both local and federal funds.
School officials have now outlined specific measures to address these issues and improve compliance moving forward.