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Two years after the Department of Health and Hospitals (DHH) eliminated its six internal audit positions, an employee of the Louisiana Department of Health and Hospitals (DHH) has been placed on leave and is expected to be fired and prosecuted for the misappropriation of more than $800,000 in state funds, LouisianaVoice has learned.

The employee, a woman, is accused of depositing checks made payable to DHH into a non-DHH account. She would then withdraw the funds from that account for personal use, investigators said. The internal investigation was conducted by DHH’s Bureau of Health Care Integrity.

In addition to conducting its own investigation, DHH notified the Louisiana Legislative Auditor’s Office and the office of East Baton Rouge District Attorney Hillar Moore. The district attorney’s office will be asked to conduct an external investigation and to prosecute the employee. Restitution also will be sought by DHH.

“In January of 2011, DHH eliminated all but one internal audit position and the following month the one remaining auditor retired, leaving no internal audit function at all at the end of Fiscal Year 2011,” Wes Gooch of the Legislative Auditor’s office told a meeting of the Legislative Audit Advisory Council just over a week ago, on Feb. 21.

He said a recent audit showed for the second year, there was “no effective internal audit function” at DHH.

“In December of 2011, DHH contracted with one auditor to perform internal audit services from December 2011 through December of 2012,” he said. “In May of 2012, this contractor submitted a proposed updated internal audit charter and one internal audit report. No other internal audit activity occurred that year,” Gooch said.

“In June of 2012, this contractor exercised the contract termination clause, leaving no internal audit function in place at the end of 2012.

Gooch told the seven legislators in attendance that each year in the Appropriations Act, “the Legislature requires agencies with budgets in excess of $30 million to use existing positions for internal audit services.

“Considering that DHH has over $650 million in assets and over $7 billion in annual revenue, an effective internal audit function is critical to safeguard state assets and operations,” he said in his testimony.

For his part, DHH Secretary Bruce Greenstein was appropriately outraged over the latest findings. We know this because he said so. “I am outraged that a member our staff would allegedly willfully misuse public funds that were intended for health care services,” he said in a prepared statement.

Non-government organizations (NGOs) traditionally submit requests for funding each year before the legislature convenes but in recent years those projects have met with increasing difficulty obtaining needed revenue given the financial plight of the state.

NGOs include organizations like councils on aging, various foundations, the Louisiana State Fair in Shreveport, local tourism associations, and even the New Orleans Jazz & Heritage Festival and in the past, requests have numbered as many as 450 as recently as 2010 but that number has dropped off sharply to 170 in 2011, about 90 last year and just 81 so far this year.

Many of those that were approved by the legislature were subsequently vetoed by Gov. Bobby Jindal.

Among this year’s submissions are requests for:

• $3.25 million for the 2014 NBA All-Star Host Committee;

• $544,000 for the Greater New Orleans Sports Foundation;

• $280,577 for the New Orleans Bowl;

• $2.47 million for the Jazz Festival;

• $2.5 million for the Louisiana State Fair in Shreveport;

• $403,100 for the Washington Parish Fair;

• $12 trillion for the National Security Agency’s Leonard Cross Hendrickson, Jr.

Wait. What? How much and for whom?

That’s right: $12 trillion for something called the National Security Agency’s Leonard Cross Hendrickson, Jr.

Obviously, the request is someone’s (probably someone named Leonard Cross Hendrickson, Jr.) idea of a joke.

And the fact that the request actually got past whatever passes for the legislature’s screening process or committee indicates Hendrickson’s joke is an unqualified success.

To request NGO funding, entities must complete a detailed questionnaire, which Hendrickson did but some of the answers he provided should be a cause of some red faces somewhere in the state bureaucracy.

Let’s start with the requesting recipient entity’s mailing address: 7998 Hwy. 5, Douglasville, GA.

An out-of-state entity seeing a state appropriation of $12 trillion (the national budget is something in the neighborhood of $3.8 trillion) should have sent up sufficient red flags and triggered enough alarms to catch someone’s attention.

But wait. There’s more.

The request form asks applicants to provide the name of each member of the recipient entity’s governing board, to which Hendrickson obligingly listed the CIA, DEA, DNI (Director of National Intelligence) and the Bush administration.

“Provide a summary of the project or program,” the questionnaire instructed, to which Hendrickson responded: “Measure waste water from space and space-based earth assets control and code enforcements water cosmic ray shields.”

Had that nonsensical response appeared on a federal grant application, Hendrickson probably would have received the money.

“What is the budget relative to the project for which funding is requested?” was the next question on the application form. Hendrickson’s response was classic:

• Salaries—$75 million;

• Professional Services—$250 million;

• Contracts—$12 billion (with the Jindal administration, that’s entirely believable);

• Acquisitions—$9 billion;

• Major Repairs—$12 billion;

• Operating Services—$100 billion;

• Other Charges—$100 trillion.

If you did the math as you read this, you know that the last item, $100 trillion for “other charges” is more than eight times the total amount requested.

For his contact information, Hendrickson provided two telephone numbers, both in the Atlanta area code. One was a non-working number and a woman answered the second number only to say she had received several calls for Leonard Cross Hendrickson but that no such person lived at that number.

So we Googled Mr. Hendrickson and a web address appeared: http://www.lookwhogotbusted.com/douglas-county-ga/hendrickson-leonard-cross-2.

Against our every instinct, we clicked on the address and up popped a photo of a smiling man identified as “Hendrickson, Leonard Cross,” 35, who, according to the website, was booked into Douglas County, GA. Jail for probation violation.

We have no way of knowing why he was on probation or what he did to violate that probation but we have to give Mr. Hendrickson high marks for successfully sneaking in his request.

Now the big question remains: will it be approved by legislature and if so, will Jindal veto the appropriation?

“The website we inherited was a mess. We cleaned it up.”

—State Education Superintendent John White, in explaining that the Department of Education’s website was changed as a result of complaints “from parents and teachers.”

“…the Department is not in possession of any public records responsive to your request.”

—Department of Education response to request from LouisianaVoice for copies of complaints “from parents and teachers” about the former DOE website design.

It appears that LouisianaVoice may have caught Louisiana Superintendent John White in, well, a little White lie about changes to the Department of Education (DOE) website.

Apparently it’s not enough that our story last week on the emails linking DOE to the Gates Foundation, Rupert Murdoch and Fox News Network apparently triggered White’s dormant Tourette’s symptoms, but now we learn he wasn’t altogether truthful about his reasons for overhauling the department’s web page.

In a Feb. 5 story by Baton Rouge Advocate reporter Will Sentell about a rash of complaints about difficulties experienced in trying to navigate the new web page, White said the decision to revamp the web page was a response to complaints from parents and teachers.

Taking that as our cue, we submitted a public records request on Feb. 7, asking for the opportunity to “review the ‘complaints from parents and teachers’ as related to the decision to overhaul the Department of Education’s web page.”

Being of a naturally suspicious nature, our reasons for skepticism were twofold:

• One, given the spate of complaints about the new page, we felt the website was redesigned as a deliberate effort to conceal DOE data from the public because those data did not support public claims by White and his boss, Gov. Bobby Jindal;

• Two, we just flat out did not believe White’s claim of “complaints from parents and teachers” about the old website.

On Feb. 19, we received a printout of complaints as a result of our request—12 days after our request and nine days late under the three-day deadline provided by state law.

What’s more, it was the wrong list. It was a printout of a half-dozen complaints—about the new website. And they weren’t complimentary. Here is a sampling:

• I am very concerned about the usability of the new website. As a network support person, I have sent many links to teachers to access resources on the DOE website, or encouraged them to use the old search box which would nearly always direct you to the appropriate link. Now if I type in any term into the search box, whether it’s GLEs or Transitional Writing Prompts, it yields zero results. I am very worried that teachers are no longer going to have access to materials they rely on every day for planning aligned lessons. Is it possible to wait to make the changeover until after testing?

• This website is very frustrating to use. I am unable to locate information that I need to do my job. How do you access handbooks and policies? How do you access LAA 1 training materials? How do you access transition information regarding special needs students who are in high school? We can no longer talk to a human being by phone or email. We are no longer provided trainings and inservices to keep up with the changes that are in place. If we no longer have a website that is user friendly, what are we expected to do?

• Your newly designed website sucks…and not in a good way. For example, if I typed in “Bulletin 1508,” I get something about gifted students, “Excerpt from bulletin 1508 about Gifted and Talented.” Please correct this and make this professional, not juvenile. I could hardly find anything easily. I finally found Bulletin 1508 in your BESE category. And correct this misspelling: “Opt In: would you like to ‘recieve’ our ED CONNECT newsletter?” For crying out loud, USE YOUR SPELLCHECKER!

• Many of your links lead to 404 errors. Come on, man! “Charter Schools” links to error page. Get rid of this juvenile site; you represent the State of Louisiana!

• I’m having a lot of trouble trying to locate the web site where I can get an application for Jefferson Parish voucher program. Please help!!!!

Make no mistake, we were tickled to receive these complaints, but they were not what we requested.

We responded that same day, Feb. 19, with a reminder that DOE had sent us the incorrect response:

• Mr. White, my request was for copies of complaints about the former DOE web page. You stated publicly that the new format was chosen because of “many complaints” you received about the old web page design. It is those complaints about the former web page that I am seeking. Please provide those as well by the close of business on Wednesday, Feb. 20, 2013.

The following day, Feb. 20, we received an acknowledgement from DOE that the wrong information had indeed been sent:

• You are correct that the responses that were sent were not responsive to your request…Please allow (DOE) to respond to your request by Friday, Feb. 22, 2013.

Well, Friday, Feb. 22 came and went. No response. Then Monday, Feb. 25 and still no response. We sent a gentle reminder and copied our legal counsel, J. Arthur Smith.

Finally, on Thursday, Feb. 28, we received the following message:

• Through this letter, please be informed that the Department is not in possession of any public records responsive to your request.

Whoa. Wait, What? No records responsive to our request?

But, but…how could that be? It was White himself who said, “We cleaned up the mess” when the website was redesigned pursuant to all those “complaints from parents and teachers.”

Dude. You may need to be recharged.

For five long years now we have patiently (or impatiently in some cases) awaited the arrival of all that transparency touted by Gov. Bobby Jindal upon his part time occupancy of the governor’s office.

Now it seems that heretofore elusive aspect of the Jindal administration has finally arrived.

No, it wasn’t Superintendent of Education John White telling News Corp. Senior Vice President Peter Gorman (aka “Dude”) that he is White’s “recharger.”

Nor is the LSU Board of Supervisors which has refused to release the names of applicants for LSU president on the grounds that the applications are conveniently (convenient for the board and the administration, that is) submitted to a Dallas consulting firm which, being a private entity, is not subject to the public records law.

It wouldn’t be the Louisiana Office of Economic Development either. LED a couple of years back refused to surrender records to the Legislative Auditor’s office so that the state auditors could perform the function with which they are charged—auditing the state’s books.

And, needless to say, it is not Attorney General Buddy Caldwell, who found a way to punt on our request for assistance in prevailing upon the Department of Education to comply with the Louisiana public records law (the law, the AG’s office informed us, says it can intervene on behalf of the public meetings law but there is no provision for it to assist with public records).

That’s a classic case of legal hair splitting, but hey, the attorney general’s office is the official legal counsel for state agencies (a veritable horde of state-contracted legal counsels notwithstanding), so who are we to argue? We’re just the low-lifes who work, pay taxes and vote in this state. Never mind some 80 or so (we finally quit counting when we reached that number) legal opinions by the AG issued to various state agencies which opine that public records must be surrendered.

But we digress (as we often do).

No, it’s none of those. The shocker here is that the transparency that has suddenly and without warning opened up before our very eyes originates in none other than the governor’s office.

Yep, chalk one up for Bobby, our part time, absentee governor who would rather run for president than run the state.

Don’t believe us? Still harboring some doubts as to the veracity of our claim?
Well, we have the proof.

Jindal is proposing scrapping the state personal and corporate income tax and replacing it with…well, something. He hasn’t the vaguest idea what (he said earlier this month that he’s still working on details of his plan).

In general terms, Jindal is talking about an increase in the state sales tax and a dollar increase in the cigarette tax (remember when he refused to sign the renewal of the 4-cent cigarette tax because, he said, he was opposed to “new” taxes?).

Never mind that a sales tax would hit the low- and middle-income taxpayers the very hardest https://louisianavoice.com/2013/01/16/par-lsu-economist-richardson-cast-doubts-on-%CF%80-yush-plan-to-replace-louisiana-income-tax-with-state-sales-tax-increase/, abolishment of state income taxes has become the mantra of Republican governors nationwide because it would represent the ultimate tax break (read: political reward) for corporate campaign donors.

But rather than rely on the lack of merits in a weak proposal, Jindal has enlisted his minions to launch a letter-writing campaign in support of his as yet incomplete tax plan.

That’s correct: the plan isn’t even completed, much less polished and officially presented to the legislature and the public, but the letter-writing campaign has already started. Never mind that the plan has as yet progressed no further than a two-page outline pretentiously entitled “A Framework for Comprehensive Tax Reform.” It apparently suffices for the purposes of initiating a well-orchestrated PR campaign from the governor’s office or perhaps from Timmy Teepell’s OnMessage (Oops, we forgot; they are one and the same).

It officially began on Feb. 20 with the publication in newspapers statewide of a letter by LED Secretary and presumed future LSU President/Chancellor/High Potentate Stephen Moret.

Boiled down to its essentials, Moret’s 12-paragraph letter claims that Jindal’s undefined, unreleased, still-in-the-works, everything-still-on-the-table plan would somehow magically bump Louisiana from No. 32 to No. 4 in something called the State Business Tax Climate.

Fine for business climate, yes, but Moret conveniently neglects how that plan, still being formulated somewhere out there in the fog-enshrouded concepts of the policy wonks, would affect the working stiffs. An addition 2 or 3 percent on the sales tax for the purchase of say, a package of toilet paper won’t be such a burden. But tack that same 2 or 3 percent onto the cost of a new refrigerator, central air and heating unit or a new automobile and suddenly, in the words of the late Illinois Sen. Everett Dirksen, you’re talking about real money.

But no matter; Moret obviously had his marching orders: write a glowing letter about how the Jindal Plan (not to be confused with the Stelly Plan that he repealed, at a cost to the state of about $300 million a year) would be great for business—and everyone knows, as President Calvin Coolidge said way back in 1925, “The chief business of the American people is business.” (The stock market crash, of course, was only four years away when he said that, which subsequently put a lot of American people out of business.)

Exactly a week after Moret’s letter, on Feb. 27, the Baton Rouge Advocate (and probably a few other papers across the state) published a second letter endorsing the still mythical tax plan. This one was written by someone named Matthew Glans, who identifies himself as senior policy analyst for The Heartland Institute in Chicago (described by The Economist last May as “The world’s most prominent think tank promoting skepticism about man-made climate change,” according to the institute’s own web page) and which also describes itself as an advocate of free market policies.

Probably its greatest claim to fame, however, came in the 1990s, when it worked with Philip Morris in attempts to debunk the science linking secondhand smoke to health issues and to lobby against government public-health reforms.

(The Heartland Institute bears an eerie resemblance to the fictional “myFACTS” currently being lampooned by Garry Trudeau in the comic strip Doonesbury.)

Glans calls Jindal’s plan “a strong step towards improving the state’s economic competitiveness and returning tax dollars to Louisiana citizens and businesses.”

At the same time he cautions against a system “that allows the government to choose winners and losers.”

“A tax system filled with tax increases on targeted items such as tobacco or subsidies for certain businesses (read: tobacco, in states like North Carolina), however, is not sound policy,” he says, adding, “A system that lowers rates across the board, like much of Jindal’s proposal, would spur economic growth.”

Strange how Glans, sitting in Chicago, could know so much about the part time, absentee governor’s tax plan when Jindal himself confesses that his “plan” is still evolving and stranger still that he would single out tobacco (and tobacco subsidies) as a potential victim of increased sales taxes.

Curious, too, that he is so knowledgeable when legislators remain in the dark.

But, hey, we wanted transparency from our governor.

And this “independent” letter-writing campaign is about as transparent as it gets.