Audit: City of Crowley victim of $78K stolen, altered check

CROWLEY, La. (KLFY) — The City of Crowley lost nearly $78,000, but got most of it back, after a check written by the city was stolen, altered and fraudulently cashed, officials said.

According to an audit released Monday by the Louisiana Legislative Auditor’s Office, a check issued by the city in September 2023 was stolen and subsequently altered. The check, originally issued in the amount of $493.58, was altered to $78,492.94. The person also changed the payee, auditors said.

The city lost a total of $77,999, but was able to recoup $70,000 by filing a claim against a bond insurance policy held on the prior city clerk, officials said.

Officials did not discover the theft until March 2024 when a backlog of bank reconciliations was completed, the audit said.

“It is recommended that the City implement internal controls to ensure that bank accounts are reconciled accurately and timely,” the auditor said. “In addition, it is recommended that the City implement stricter controls over check handling and issuance.”

In his official response, Crowley Mayor Chad Monceaux said that issue has been resolved.

“This incident occurred under supervision of the prior City Clerk,” Monceaux said. “It was discovered and reported to the proper agencies by the current City Clerk and the outside CPA firm. AII bank reconciliations are current and reconciled within 30 days of the statement date. Reconciliations are reviewed monthly by the outside CPA firm.”

Whether a suspect was identified or apprehended was not released.

The audit, performed by the firm of Kolder, Slaven and Co., was for the fiscal year ending Aug. 31, 2024. Read the audit in its entirety below:

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