Audit: LSU waited nearly 2 years to report theft, misconduct to state authorities

BATON ROUGE, La. (Louisiana First) — Louisiana State University failed to notify state auditors and the district attorney about suspected asset misappropriations in a timely manner, according to a report by the Louisiana Legislative Auditor (LLA).

The audit, released this month, found that LSU’s Office of Internal Audit (OIA) completed an investigation into financial misconduct on Oct. 24, 2022. However, the university did not notify the LLA or the East Baton Rouge Parish District Attorney until nearly two years later, on Sept. 18, 2024. State law requires immediate notification of such findings under Louisiana Revised Statute 24:523.

The investigation reportedly uncovered that an employee had repeatedly been absent from work without approved leave, an issue that auditors said constitutes asset misappropriation. The audit also revealed multiple theft cases involving movable property that LSU failed to report to authorities for two years, despite receiving police reports from campus police.

"Failure to make proper notifications places the system in noncompliance with state law, impairs a timely response to control weaknesses by the auditor, and could delay the potential prosecution of guilty parties," the audit stated.

University Response

In a written response, LSU partially concurred with the findings. Executive Vice President of Finance and Administration and Chief Administrative Officer Kimberly Lewis outlined steps the university plans to take to address the issues:

• Revising policies to improve the evaluation and reporting of suspected misappropriations.
• Formalizing requirements for notifying the Property Management Office about stolen assets.
• Enhancing the process for campus police to report thefts to the Property Management Office.

The university emphasized its commitment to improving compliance with state laws and implementing stronger internal controls.

Legal and Policy Implications

The audit noted that the delayed notifications could hinder accountability and legal proceedings, as authorities rely on timely reporting to investigate and prosecute cases of financial misconduct. LSU’s actions are now under scrutiny as the state seeks to ensure adherence to reporting requirements in public institutions.

Timeline of Events

• October 2022: LSU Office of Internal Audit completes an investigation into suspected financial misconduct.
• September 2024: LSU notifies the Louisiana Legislative Auditor and district attorney, nearly two years after the findings.
• January 2025: Louisiana Legislative Auditor releases a public audit highlighting LSU’s delayed reporting and noncompliance with state law.

Moving Forward

LSU has pledged to make the necessary changes to avoid future delays in reporting misconduct. The Legislative Auditor stressed the importance of immediate notifications to uphold transparency, accountability, and compliance with state laws.

This is a developing story. Louisiana First will provide updates as more information becomes available.

Latest News