EUNICE, La. (KLFY) — LSU Eunice showed several deficiencies in its accounting procedures, some of them repeated from previous years, in an audit released Monday by the Louisiana Legislative Auditor’s Office.

The audit covered the period from July 1, 2022, through June 30, 2024.

For the third consecutive report, auditors noted that LSU Eunice had inadequate controls over student refunds and did not submit past-due student accounts receivable to the Louisiana Attorney General for collection in accordance with state law and the university’s written procedures.

“Refunds for overpayments of tuition and fees are compiled, edited, sent for payment, posted to student accounts, and reconciled by one employee with limited independent review,” the audit read. “Good internal control requires segregation of duties and shared responsibilities of key processes. Inadequate segregation of duties increases the risk that students are refunded incorrect amounts due to error or fraud.”

In a response letter signed by LSU Eunice Chancellor Nancee Sorenson, the university concurred with the finding and said new software is in place that will remedy the situation.

“Starting in Fall 2025, LSUE will be fully operational in Workday Student, and no longer operating in Jenzabar,” Sorenson wrote. “With the added functionality, LSUE believes it can implement
proper internal control policies for student refunds.”

Also for the third consecutive report, unclassified university employees who earned leave did not certify time and attendance records monthly as required by state law.

“Inadequate controls over monthly certifications increases the risk of fraud or error related to time worked going undetected and noncompliance with state laws,” the audit read.

Sorenson again concurred with the finding, and said Audwin Donatto, the school’s new Associate Vice Chancellor of Business Affairs, would implement an action plan to rectify the shortcomings.

“The policy will include disciplinary measures for non-compliance,” Sorenson wrote. “We have identified that faculty comprise the largest group of employees that are late in certification. The Vice Chancellor of Academic Affairs and Provost will work in tandem with the Office of Business Affairs to ensure this is completed.”

In addition, LSU Eunice did not maintain adequate controls over payroll to ensure payments were properly approved and were in accordance with university policy or applicable laws and regulations.

One employee had a faculty pay increase that was not approved by appropriate personnel, and three other employees were granted one-time payments based solely on years of service already rendered, which may have violated state law.

“We determined this pay increase (to the first employee) was part of an across-the-board faculty increase of 2.5% to 3% during fiscal year 2023 that was granted to 53 employees totaling $85,086 without appropriate approvals,” the audit read. “We determined these payments (to the other three employees) were part of one-time payments of 4% of base salary for full-time, permanent professional staff employed for at least one year and 7% of base salary for full-time, permanent professional staff employed for two or more years for fiscal year 2024 that were granted to 42 employees totaling $131,410.”

Sorenson said Donatto will be responsible for making sure HR will not process any raises without all the required signatures.

“This will ensure compliance with LSU Eunice Policy,” Sorenson wrote. “LSU Eunice with consult with the Office of the Louisiana Attorney General when applicable to ensure there is no possible violation of state law.”

Read the full audit below:

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