Audit: Recreation funds were used to pay off personal credit cards

Published 12:45 pm Tuesday, April 12, 2022

The former bookkeeper/secretary for the Oakdale Recreation District 1 used public funds to pay her personal credit cards, a state investigative audit found.

The audit released Monday by Louisiana Legislative Auditor Michael “Mike” Waguespack found $86,889 in recreation district funds were used to make 93 payments to two personal credit card accounts belonging to the former bookkeeper/secretary Melissa “Lisa” Schaefer.

Schaefer was the district’s part-time secretary and bookkeeper from 2012 until her death on March 11, 2021. She also served as the city clerk for 19 years.

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City audits conducted shortly before Schafer’s death and those after have found nearly $1 million in questionable expenses including the transfer of nearly $360,000 from the city’s bank account to her three personal bank accounts. The audits also accuse Schafer of manipulating automated clearing house transfers to pay herself $769,136 more than her authorized salary for over seven years and receiving an additional $13,378 in payments she was not entitled to receive.

According to the latest audit, $86,889 from the recreation district was used to pay Schafer’s credit cards between January 2012 and February 2018. No documentation could be found to show Schaefer was entitled to the payments or that the purchases were made for the district’s benefit. By using district funds she was not entitled to, Schaefer may have violated state law, according to the audit.

Copies of the audit have been sent to the Allen Parish District Attorney’s Office and the U.S. Attorney for the Western District of Louisiana.

The state began its investigation into the recreation district’s finances after discovering improper transactions at the City of Oakdale and learning that the former clerk was also the recreation district’s bookkeeper.

Recreation District President Thomas Davis Jr. agreed with the findings In a written response to the audit and said the matter had been referred to the Allen Parish Police Jury’s legal counsel to determine if the improper payments could be recovered.

Davis also said all bank statements will now be forwarded directly to the district’s accountant who will review and reconcile the bank statements before final approval by the recreation board. The board is also working on a written policy for reimbursements to employees.

Schafer’s husband, Randal also responded to the audit saying all recreation board work was done at her office at City Hall and any checks, invoices, files or other items would have been kept at her office at City Hall. Additionally he said his wife told him in the past that she would purchase items for the swimming pool and would be reimbursed.

Randal Schafer also said the recreation board had clean audits in the past and questioned where those audits are.

“I feel that if you find the audit reports much of the information you need would be with them,” he wrote.

Randal Schafer said he feels very strongly that there is or was documentation to be found that would help with the situation.