Audit committee: limited computer fraud, missing deposits found in Plaquemines Parish water billing; committee urges new software and stronger controls

Plaquemines Parish Council Audit Committee members reviewed an internal audit of the Plaquemines Parish Water Department on April 10, 2025, that reported isolated instances of employee computer fraud and several cases of missing cash and recommended purchasing a new billing system, tightening user access, and improving deposit procedures.

The audit, presented by Mr. Duke, the parish internal auditor, concluded that a single instance of computer fraud was identified in which a water-department employee exempted her own account from penalties and shutoff fees. "Plaquemines Parish government, PPG, upholds a 0 tolerance approach regarding fraud, theft, and corruption," Mr. Duke read from the report, and he said the instance produced a small exposure of $8.28 in late fees and $60 in disconnect fees. The report identified additional cash-handling incidents and recommended that the administration promptly report theft, fraud, waste, and abuse to the internal audit department for investigation.

The audit detailed three categories of findings. Finding No. 1 described the computer fraud and recommended that water-department and Inframark employees not have change rights to their own accounts and that the parish adopt a billing system with fraud-prevention controls. Finding No. 2 documented multiple missing cash deposits traced to customer transactions on May 20–22, 2024, including examples of cash and tap-fee deposits that were recorded in office records but not reflected as bank deposits. Finding No. 3 described a missing lockbox envelope containing cash, recorded in the report as $715.67, and noted that an employee later reimbursed the department (the audit text lists the reimbursement as $750.67).

The report identified weaknesses in existing controls: shared usernames and passwords, incomplete rights separation, inconsistent end-of-day deposit reconciliation, and disorganized physical record storage. It recommended written policies and procedures for processing receipts, monthly reconciliations between the detailed customer listing and the general ledger accounts receivable, limiting extension and write-off authority to senior management, installing security cameras at customer-service windows, and including a specific right-to-audit clause in future contracts with private vendors.

Representatives from Inframark and parish management responded during the meeting. An Inframark representative and the Inframark manager said controls were being implemented and that the vendor is working with parish staff to review software options. The director of public service and other managers told the committee they reviewed the findings and that the matter had been referred to the district attorney's office; committee members were told the implicated employee was terminated.

Committee members pressed administration on the timing of internal notifications. Mr. Schultz, an Audit Committee member, said the administration should have alerted internal audit sooner: "If something should come up again, please tell 1 of us 3 or Mr. Duke, and we will add it to the calendar and do a thing," he said, urging faster reporting to avoid delays in investigation. Members noted the audit showed related recommendations as early as February 2019 and April 2024 and emphasized that the parish stopped accepting cash at water-department offices effective July 1, 2024, following the incidents.

The committee asked for monthly updates on the billing-system procurement and implementation and for clearer contract language to guarantee the internal auditor "unhindered access to all records," citing the current water-department contract language as insufficient. The internal auditor said he is reviewing Inframark's proposed operating procedures and requested more-detailed documentation of controls the vendor has put in place.

Votes at a glance: the committee approved the minutes of the Oct. 10, 2024, Audit Committee meeting on a 3–0 vote.

The committee moved next to reviews in progress and scheduled future audits; it asked staff to return with software-selection updates and to address record-retention organization and reconciliations recommended in the audit.