Louisiana Inspector General Urges Strict Oversight of Nonprofit Funding

Louisiana State Inspector General Angele Davis is advocating for rigorous oversight of $113.5 million in taxpayer funds allocated to 272 nonprofit and nongovernmental organizations. Following a review of past appropriations that revealed questionable expenditures and oversight gaps, Davis sent a letter containing 10 recommendations to State Treasurer John Fleming.

The push for reform comes after investigations uncovered significant issues, including a criminal case involving Divine Kingdom Ministries Inc. The organization received a $37,500 advance from a $75,000 state appropriation intended for academic support and life-skills training. Treasury personnel flagged suspicious financial reports, leading to the September arrest of the group's director, Jazmine King, on allegations of felony theft and filing false public records.

Investigators reported that King allegedly used roughly $37,500 of state funds for personal expenses such as a vehicle, jewelry, and travel. Another reviewed organization, the National Association for African American Economic Development, received a $400,000 advance on an $800,000 award but failed to submit mandatory reports. State auditors found that more than $205,000 was transferred out of its dedicated account within six months, prompting the Treasury to withhold the remaining funds.

Davis's recommendations aim to curb these issues by capping advance payments at 25 percent in approved exceptions, restricting certain administrative expenses to 10 percent, and demanding documentation before issuing reimbursements. Furthermore, any exception for advance payments would require demonstrated financial need and written approval from Commissioner of Administration Taylor Barras.

The review also identified three 2026 recipients already listed on the Legislative Auditor's noncompliance list: the Louisiana Sports Hall of Fame Foundation, Thrive New Orleans, and Broad Community Connections. Under Louisiana law, disbursable funds are generally restricted from organizations that fail to meet reporting requirements without a formal extension.

Governor Jeff Landry voiced support for the measures on social media, stating on X that Inspector General Davis discovered serious oversight failures and that her efforts safeguard public tax dollars while fighting waste, fraud, and abuse.

Commissioner Barras has approved a revised agreement template incorporating the proposed recommendations, though implementation by the State Treasury remains a necessary next step. Davis is requesting that these changes apply immediately to unexecuted agreements and remaining disbursements under existing contracts rather than waiting for future funding cycles.