(The Center Square) – The South Central Louisiana Human Services Authority may have broken the law by using an account with excess funds for optional pay and office football pools, the Louisiana Legislative Auditor reports.
A report released by the Louisiana Legislative Auditor earlier this month examined the finances of the South Central Louisiana Human Services Authority to ensure accurate reporting, compliance with laws and regulations and accountability of public funds for the last two fiscal years.
Auditors flagged improper use of one of the authority’s bank accounts, its Employee Social Affairs Committee Account, intended to pay for employee appreciation items for authority employees.
The account maintained a balance of over $400,000 over the two years, funded in part by a $274,000 appropriation from 2009 for construction and purchase of an office building deposited in the account in 2019.
Auditors found the authority “paid an employee over $1,300 in Optional Pay from the ESAC account even though the employee had a probationary status and was not eligible for Optional Pay under State Civil Service rules,” the report read.
Based on guidance from the Attorney General, “Optional Pay to an employee that is a probationary employee appears to be a violation of Civil Service rules and of Louisiana Revised Statute 28:916(D).”
The report also details football betting pools that resulted in $1,200 deposited into the account.
“The use of an employee football pool to raise funds may have violated the state’s gambling statute and the Louisiana State Constitution,” auditors wrote, citing opinions of the Attorney General and Louisiana Administrative Code prohibitions.
Auditors noted the authority “does not meet the requirements to apply for and receive a charitable gaming license.”
Another finding suggested the authority may have violated the Local Government Budget Act by not including the ESAC funds in its official budget.
The authority’s executive director, Kristin Bonner, responded to the report with a letter to LLA Mike Waguespack on Nov. 20 that concurred with the finding on optional pay but disputed the findings on gambling and including the ESAC funds in its budget.
Bonner explained the $1,300 went to an employee who had permanent status for over five years but was moved to a higher-level probationary position and gained additional duties associated with Hurricane Ida.
“At the time, she was the only SCLHSA employee with sufficient experience in hurricane disaster preparedness to accept the additional duties for which the payment was to compensate, and there was a dire need for someone with her experience to take on these duties,” Bonner wrote, adding that the authority will prohibit those types of payments in the future.
Despite the authority’s disagreement with the other findings, Bonner vowed to end future gambling activities and to present financial reports of its ESAC account and any other bank accounts to its board during a Budget Request Summary and monthly financial reports.
