(The Center Square) — A recent audit says the Louisiana State Museum hosted guests and made purchases through the William R. Irby Trust without maintaining proper evidence of approval.
Mr. William Ratcliffe Irby, in his 1926 will, left the Lower Pontalba apartment buildings located in New Orleans to the museum, requiring the property and its expenditures be used for museum-related purposes only.
In addition, the state Constitution prohibits funds, credit, property or things of value of the state to be loaned, pledged or donated to or for any person, association or corporation, public or private.
The audit performed by Louisiana Legislative Auditor’s Office found the Office of Lieutenant Governor and Department of Culture, Recreation, and Tourism did not maintain sufficient documentation to demonstrate that guest stays in the apartment designated by the trust provided a tangible, direct benefit to the museum, which would violate the trust agreement and state Constitution.
Based on a review of 11 apartment guest stays approved by the museum from July 2022 through Jan. 2024, auditors identified three that were donated as raffles or auction items for fundraising purposes unrelated to the museum.
Another issue in documentation was found, this one linked to trust purchases.
Thirty trust expenditures occurring between July 1, 2022, and Feb. 28 were reviewed and 12 lacked evidence of appropriate authorization for the purchase. Eight were made without an approved purchase request, three had purchase requests that were not approved prior to purchase and one was requested and approved by the same employee without written authorization to do so.
Lastly, the office did not have evidence that their board approved the fiscal year 2024 annual budget.
According to auditors, the consequences of possible breaches of the trust are not determinable absent legal action. Beyond that, they warned against these budget and expenditure mistakes, stating they could lead to mismanagement of funds and improper purchases.
This was the fourth consecutive engagement that weaknesses were found within the department related to the Irby Trust.
In a response, the museum board concurred in the audit’s findings and ensured this time they would fix the issues.