State Audit Flags Credit Card Misuse, Reporting Delays At UL Lafayette

A newly released audit from the Louisiana Legislative Auditor has identified multiple concerns at the University of Louisiana at Lafayette, including falsified football recruiting expenses, delayed reporting of public fund misappropriations, unauthorized banking activity, and federal research compliance issues that have now persisted for five consecutive years.

The annual management letter found that while some previously cited deficiencies have been corrected, several long-standing issues remain unresolved. The report also details a series of financial irregularities involving university accounts and purchasing cards.

Former Athletics Employee Accused Of Falsifying Recruiting Expenses

One of the audit's most notable findings involves a former Athletics Department employee who allegedly submitted falsified documentation for football recruiting expenses charged to a university-issued LaCarte purchasing card.

According to auditors, the employee instructed vendors to disguise unallowable alcohol and food purchases by listing them on receipts as room rentals or event deposits. Investigators confirmed nine transactions totaling nearly $6,000 that were misrepresented between late 2024 and early 2025.

The audit also identified an additional 10 transactions totaling more than $7,000 involving the employee's predecessor and supervisor that were deemed suspicious but not fully confirmed.

The employee resigned from the university in January 2026. The supervisor remains employed but has had university purchasing card privileges revoked. Some of the improperly charged funds have already been recovered through payroll deductions and reimbursement efforts.

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Auditor Says Reporting Requirements Were Not Followed

The Legislative Auditor also criticized UL Lafayette for failing to immediately notify both the Legislative Auditor's Office and the Lafayette Parish District Attorney's Office after discovering multiple instances of potential misappropriation, as required by Louisiana law.

University officials disputed portions of that finding, saying the matter was referred to Human Resources and Internal Audit as soon as concerns were identified. University President Dr. Ramesh Kolluru stated that discussions with the Legislative Auditor helped determine when the incident met the definition of a reportable misappropriation. The university later notified the District Attorney's Office in April 2026.

More Than $70,000 In Unauthorized Bank Activity Detected

The audit also examined unauthorized activity involving two university bank accounts.

According to auditors, UL's internal monitoring systems detected more than $70,000 in fraudulent activity during 2025. While suspicious transactions were denied and no university funds were ultimately lost, auditors said reporting requirements were not immediately followed.

The bank fully reimbursed the affected accounts, and university officials said internal controls functioned as intended by preventing any financial loss.

A separate incident involved a lost LaCarte card that was used for $671 in unauthorized purchases. Police recovered the card and identified the individual responsible.

Federal Research Findings Return For Fifth Straight Year

Beyond the financial issues, auditors once again cited UL Lafayette for deficiencies involving federally funded research programs.

For the fifth consecutive year, auditors found the university lacked adequate controls to ensure compliance with personnel expenses charged to federal Research and Development Cluster awards. Auditors also found that the university failed to adequately monitor subrecipients connected to those federally funded programs.

University leadership acknowledged the findings but emphasized that corrective actions have been underway for more than a year.

Kolluru said significant organizational and procedural changes have already been implemented and expressed confidence that the research-related findings will be resolved during the next audit cycle. The university also noted that two prior compliance findings were successfully addressed and are no longer included in the audit.

University Says Progress Is Being Made

In a statement to the campus community, Kolluru described the audit as evidence of both remaining challenges and ongoing progress.

He said the university has strengthened oversight procedures, enhanced employee training, improved expense review protocols, and implemented additional safeguards designed to prevent similar issues in the future.

While university officials point to resolved findings and improved controls, the latest audit ensures financial oversight and compliance practices at UL Lafayette will remain under close scrutiny heading into the next audit cycle.