The university received a “D” grade from the Louisiana Legislative Auditors report, which cited fraudulence and misappropriation of funds totaling $58,554 in the Department of Recreational Services.

The report also stated that more funds could be missing because “some pre-ordered receipts had been totally removed from the receipt books and approximately three months of cash register tapes were not located.”

President Nick Bruno said at a press conference on Thursday the “D” grade “doesn’t reflect the overall status of the university’s financial conditions and/or controls” but reflects only specific items within the report.

“The whole purpose of the internal audit is to identify issues like this whenever possible and minimize the impact on the institution,” Bruno said.

The university became aware that revenues in the Department of Recreational Services appeared “less than expected” and began an investigation in July 2012.

After the internal investigation was completed in October 2012, it was discovered that there was a misappropriation of funds by one or more employees. Record keeping was weak, which allowed for individuals to access the cash. The $58,554 was acquired over a year’s time.

Kirby Campbell directed the internal audit and found that more funds could be unaccounted for.

“There’s no way to determine if more funds are missing because the records are missing,” Campbell said.

Bruno said the problem had already been resolved by the time university officials reported the incident to the Louisiana Legislative Auditor.

Bruno said corrective measures were taken and the employees involved are no longer working at the university.

“It is our commitment to be good stewards of the state’s funds and to protect the assets of the state of Louisiana,” Bruno said.

The auditor’s report is done every two years. This audit was conducted through the University of Louisiana System to evaluate its accountability over public funds for the period July 1, 2010, through June 30, 2012. The full audit report is available at www.lla.la.gov.

Campbell also said the university sent in an insurance claim to the Department of Risk Management requesting reimbursement.

The Legislative Auditor serves as a watchdog over finances of local and state governments.

It also conducts more than 3,500 independent financial and performance audits on universities, colleges and state agencies.