(The Center Square) − The Louisiana Legislative Auditor’s latest annual report details over $3 billion in missing, misappropriated, overstated or understated funds across 18 state agencies and political subdivisions.
The Governor’s Office of Homeland Security and Emergency Preparedness had one of the most significant financial accountability failures. The agency failed to properly document expenses, exceeded cost estimates, and violated procurement guidelines in reimbursement requests, totaling $177.8 million in unsupported costs and another $52.6 million in improper contract spending.
Similarly, the Louisiana Department of Health misreported federal Medicaid expenditures, leading to $18.3 million in questioned costs. This includes duplicate reporting of a $16.6 million Medicaid expense, raising concerns about potential waste and fraud. Further, LDH spent $720.5 million on Medicaid Managed Care Organizations for beneficiaries who did not receive services, raising major accountability questions.
The Louisiana Workforce Commission failed to adequately oversee $47.1 million in subrecipient funds for job training programs, and its failure to comply with federal reporting rules affected $38.7 million in workforce program funding.
The Louisiana Department of Education overreported $2.3 billion in federal child nutrition grants and misclassified nearly $1 million in education stabilization funds. The agency also failed to properly track LaCarte and travel card purchases.
At the local level, the Grant Parish School Board may have been overbilled by contractors for mold remediation, resulting in $4.6 million in potential improper payments. In the city of Bogalusa, officials improperly used $468,125 in federal COVID-19 relief funds for employee bonuses, violating federal spending guidelines.
Despite years of audits, some agencies continue to repeat financial missteps. the homeland security office alone has amassed $2.4 billion in flagged expenditures over the years, with $256.7 million newly identified in this report. The health department has failed to correct Medicaid eligibility determination errors for four consecutive years, contributing to millions in improper payments.
Many of these issues persist year after year and underscore a need for stronger accountability measures to ensure taxpayer dollars are used appropriately.
