The Louisiana Legislative Auditor’s office, as required by law, issued its Report on Fiscal Deficiencies, Inefficiencies, Fraud, or Other Significant Issues Disclosed in Governmental Auditors for the first quarter of Fiscal Year 2019 last October.
And now, six months down the road, it’s a pretty good bet that no more than a handful of legislators, at best, have even glanced at the five-page REPORT that nine state agencies and one local agency for 17 deficiencies or irregularities totaling more than $245.7 million. Some of the deficiencies reported go back as far as 2008.
In fact, the smart money says that no more than a half-dozen of the 28 House members and 19 Senators who comprise the Joint Legislative Committee on the Budget have even picked up a copy of the report.
After all, there are campaign funds to be raised and lobbyists to be kept happy and one must have priorities.
And these are the ones who are charged with watching the purse strings on the state budget:
Joint Legislative Committee on the Budget (JLCB)
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I base my opinion on the premise that had any of them read the report, they would—or should—be raising holy hell over such things as:
- For the sixth consecutive report, the Department of Environmental Quality has not fully implemented effective monitoring procedures over the Waste Tire Management Program (WTMP) to ensure that waste tire date used to calculate subsidized payments to waste tire processors is reasonable. “We first reported weaknesses in controls over payments to WTMP processors in our engagement that covered fiscal years 2008 and 2009,” the report says. For the period from July 1, 2007, through June 30, 2017, DEQ paid out $99.4 million in subsidies to six waste tire processors.
Other major deficiencies cited included:
Governor’s Office of Homeland Security and Emergency Preparedness (Hazard Mitigation):
- Expense reimbursements not supported by invoices, receipts, lease agreements, contracts, labor policies, time records, equipment logs HUD settlement statements, appraisals, elevation certificates, duplication of benefits verification, engineer plans inspection photographs or other documentation: $1.8 million;
- Contracts and purchases did not comply with applicable federal and state procurement requirements: $1.47 million.
Governor’s Office of Homeland Security and Emergency Preparedness (Public Assistance):
- Completed work not within the scope of an approved project: $2.3 million;
- Expense reimbursements not supported by invoices, receipts, lease agreements, contracts, labor policies, time records, equipment logs, inventory records or other documentation: $40.1 million;
- Contract and purchases did not comply with applicable federal and state procurement requirements: $11.95 million;
- Work reflected in the expense reimbursements did not comply with applicable FEMA regulations: $9.4 million;
- GOHSEP’s cost estimating tool and/or expense review form either omitted or contained duplicate and/or incorrectly categorized expenses: $956,000.
Attorney General:
- The AG did not deposit money into the Fraud Fund in fiscal year 2016 in accordance with state law: $713,000.
Louisiana Department of Health:
- LDH did not deposit money into its Fraud Fund between fiscal years 2012 and 2017 in accordance with state law: $2.8 million;
- LDH incorrectly deposited money into the Medicaid Fraud Fund in fiscal year 2012 that should have been deposited into the Nursing Home Residents’ Trust Fund: $323,000;
- LDH spent money from the Medicaid Fraud Fund in fiscal year 2017 for salaries that do not appear to meet the intended purpose of the Fraud Fund: $477,000;
- LDH spent money from the Medicaid Fraud Fund in fiscal 2012 on software that could not be implemented due to system compatibility issues: $643,000.
Coastal Protection and Restoration Authority (Oil Spill):
- Amounts requested/invoiced not supported by invoices, receipts, lease agreements, contracts, labor policies, time records, equipment logs
It’s somewhat puzzling when people like Reps. Cameron Henry (R-Metairie) and Taylor Barras (R-New Iberia) try to fight the governor’s budgetary proposals at every opportunity (including his attempt to increase teachers’ pay) but you never hear a peep out of them about a paltry $245 million.
And Henry just happens to be chairman of the JLCB and Barras just happens to be Speaker of the House.
As our late friend, C.B. Forgotston was fond of saying, “You can’t make this stuff up.”
Louisiana Voice 
Thanks for this. It is something I have been talking and writing about for decades. That so many of these findings are repeats is clear evidence the right people are not paying attention. Even the governor’s enemies rarely use them against him.
Most people adhere to the spirit of the advice Walsh gave Jake in the movie of the same name: “Forget it, Jake. It’s Chinatown.”
Ignorance and apathy are bliss, or, as Alfred E. Neuman says, “What, me worry?”
Has anyone been able to check their bank accounts for deposits of the missing money?
I have to say my respect for the Auditor has just gained some points. It appears that the meeting I had at his office did not fall on deaf ears.
Thank you Mr. Tom A. for this article!!
Which Governor’s Office of Homeland Security and Emergency Preparedness failed so miserably? Jindal? Edwards? Both?
Unfortunately, the report does not give the years the discrepancies were found, but a quick check of the specific audits for the two programs indicated that the audits were conducted for the period of January through June 2018, meaning the findings would have been during the current administration.
Shared w the Joint Committee members – and “the public” in my small world. I always say that if they know, and can’t say they didn’t know, they are being held accountable.
I feel compelled to make a comment regarding two legislators, one of whom is itemized above, Rep. Blake Miguez, and another who is not, Sen. Fred Mills, and their level of interest in reports of the Legislative Auditor.
I just want to state for the record that it’s simply unfair to label Rep. Blake Miguez as a representative who ignores reports of the Louisiana Legislative Auditor’s Office because I know from first-hand experience that he has done the exact opposite! The same holds true for Sen. Fred Mills again based on that first-hand experience, and I appreciate the opportunity to express those sentiments via this comment.