CITY OF OAKDALE, LOUISIANA Reporting on Fraud and Misappropriations For the Year June 30, 2020 #_[ ELEMENT OF FINDING RESPONSE 1 [Ageneral statement describing the | The City Clerk used ACH fraud or misappropriation that transactions to transfer cash to 3 occurred. ‘personal bank accounts. 2 | Adescription of the funds or assets | Cash in the bank accounts were that were the subject of the fraud or | the subject of the possible misappropriation (ex., utility receipts, | misappropriation. petty cash, computer equipment) 3. | The amount of funds or approximate | $248,563.58 in funds were value of assets involved. possibly misappropriated in the audited fiscal year and $109,461.98 subsequently. 4 | The department or office in which the | The City Clerk is in the financial fraud or misappropriation occurred. _| administration department. 5 | The period of time over which the | The analyzed possible | fraud or misappropriation occurred. | misappropriation occurred from | July 1, 2019 through March 11, 2021. 6 | The title/agency affiliation of the City Clerk. person who committed or is believed to have committed the act of fraud or misappropriation. 7 | The name of the person who. ‘Melissa Schaefer. No formal committed or is believed to have charges have been filed and no committed the act of fraud or adjudication in progress as she is misappropriation, if formal charges _| deceased. have been brought against the person and/or the matter has been adjudicated. ® | isthe person who committed oris | No. believed to have committed the act of fraud still employed by the agency? 9 | Ifthe person who committed or is | N/A believed to have committed the act of fraud is still employed by the agency, do they have access to assets that may be subject to fraud or misappropriation? 70 | Has the agency notified the Yes. appropriate law enforcement body about the fraud or misappropriation? 16CITY OF OAKDALE, LOUISIANA Reporting on Fraud and Misappropriations For the Year June 30, 2020 11 | What is the status of the investigation | The investigation is believed to atthe date of the be ongoing auditor’s/accountant’s report? 12 | ifthe investigation is complete and | The investigation is believed to the person believed to have be ongoing and no criminal committed the act of fraud or charges have been filed as the misappropriation has been identified, | subject is deceased. has the agency filed charges against that person? 13 | What is the status of any related No adjudication in progress adjudication at the date of the because the subject is deceased. auditor’s/accountant’s report? 14 | Has restitution been made or has an | There has been no restitution insurance claim been filed? received as of yet but fidelity bond insurance claims were filed in the amount of $35,000 and $50,000. 15 | Has the agency notified the Louisiana | The City has complied with LRA Legislative Auditor and the District | 24:523 by submitting the Attorney in writing, as required by _| required written notifications Louisiana Revised Statute 24:523 timely (Applicable to local governments only) 16 | Did the agency's internal controls | No. allow the detection of the fraud or misappropriation in a timely manner? 17 | ifthe answer to the last question is | The two electronic devices that “no,” describe the control allow people to initiate and deficiency/si approve ACH transactions were deficiency/material weakness that _| both being held by the City Clerk allowed the fraud or misappropriation | allowing her to transfer money to occur and not be detected in a and insert her own descriptions timely manner. of postings on the bank statements 18 | Management's plan to ensure that | The electronic devices will be the fraud or misappropriation does not occur in the future held by two different people in the future. The Mayor will be receiving reports directly from the bank detailing the amounts and recipients on all ACH transfers, 1