BAKER — An audit by the Louisiana Legislative Auditor found several issues with the City of Baker, including accounting with the Baker Police Department, payroll operations and the filing of reports. 

According to the audit, the city did not have adequate segregation of functions within the accounting system at the police department, as the city does not have a sufficient number of staff performing administrative and financial duties.

The department's failure to separate accounting and financial functions increases the risk that errors, including fraud, may occur. 

The audit also found that certain payrolls within the city were processed without documented approval of accuracy, as the city failed to follow formal payroll policies, which could lead to several unauthorized payments. 

It was also revealed that the city failed to submit its annual financial report to the Legislative Auditor's Office by the required deadline.

Other issues found in the audit include the city not having policies or procedures governing interfund transactions and settlement timelines. 

According to the audit, the city reported significant outstanding interfund balances that accumulated over multiple reporting periods. As the City of Baker operates under a pooled cash system where cash from multiple funds is combined, this could lead to certain funds with restricted resources being used to finance the operations of other funds.