Louisiana's Inspector General Angele Davis is pushing for tighter oversight of $113.5 million in taxpayer funding authorized for 272 nonprofit and other nongovernmental organizations statewide, after a review of four previous appropriations uncovered questionable expenditures, inadequate financial reporting and oversight failures — including one case that resulted in a criminal arrest. The $113.5 million reflects funding lawmakers approved in 2026, not necessarily money already spent, and the review did not establish how much of this year's authorized funding has actually gone out the door.
Davis sent a letter outlining 10 recommendations to State Treasurer John Fleming, according to New Orleans CityBusiness. She said every defect her office identified was visible on the face of the file before the agreement was even signed, pointing to a pattern of problems baked in from the start rather than catching them after money moved. Commissioner of Administration Taylor Barras approved a revised agreement template incorporating her recommendations, though implementation by the Treasury remains a separate step that has not yet been confirmed.
An Arrest Puts a Face on the Problem
The case that triggered a criminal referral involves Divine Kingdom Ministries Inc., which received a $37,500 advance against a $75,000 state appropriation earmarked for academic support and life-skills training. Treasury officials identified concerns with the group's cost report and referred the matter to the inspector general. The organization's director, Jazmine King, was arrested in September on allegations of felony theft and filing or maintaining false public records, according to KTBS.
Investigators accused King of using roughly $37,500 in state funds for personal expenses, including a vehicle, jewelry and travel, the station reported. King's first cost report was flagged by Treasury personnel over suspicious cash-back transactions, missing invoices and an Airbnb purchase, per the same account.
Another Group's Funds Moved Before Reports Were Filed
A second example involves the National Association for African American Economic Development, which received an $800,000 appropriation. In March 2024, the Treasury advanced $400,000 — half the total award — but the group failed to submit required progress and cost reports. The Legislative Auditor's office found that $205,123 had been transferred out of the organization's dedicated account within six months, per New Orleans CityBusiness. Treasury ultimately withheld the remaining $400,000 from disbursement and referred the matter for further review.
Other examples detailed in the review point to similar red flags. An unnamed organization that received a $50,000 advance in February 2026 claimed $46,615.88 in expenditures, but investigators found its cost report did not identify vendors, and $13,000 of those claimed expenditures went to connected parties. A separate fiscal year 2025 agreement valued at $250,000 listed two subcontractors responsible for 90% of the funding simply as “To be determined,” included a $25,000 administrative fee, and authorized a 50% advance justified in a single sentence. That organization had been registered only five months before the agreement began and had one individual serving as its sole board member, president and authorized signer.
Three 2026 Grantees Already on a Noncompliance List
Three recipients of 2026 appropriations have appeared on the Legislative Auditor's Sept. 30 noncompliance list: the Louisiana Sports Hall of Fame Foundation, allocated $100,000; Thrive New Orleans, allocated $51,500; and Broad Community Connections, allocated $50,000. Louisiana law generally prohibits disbursing appropriated funds to organizations that fail Legislative Auditor reporting requirements unless an extension is granted. The Legislative Auditor's own authority, per the agency's published guidance, is limited to publishing that noncompliance list.
What Davis Wants Changed — And Fast
Davis's recommendations call for capping advance payments at 25% in approved exceptions, limiting certain administrative expenses to 10%, and requiring documentation before reimbursement rather than relying on advances. Any advance payment exception would require demonstrated financial need and written approval from Barras. The recommendations also call for withholding payments from organizations that fail to document their spending, additional screening of nonprofits and their contractors, and heightened scrutiny of organizations controlled by a single individual or established shortly before receiving an appropriation.
Davis is requesting immediate changes both to agreements that have not yet been executed and to remaining payments under existing agreements, rather than waiting for a future funding cycle. According to Davis, the proposed changes do not require legislative approval, meaning they could, in theory, take effect without a vote in Baton Rouge. Still, Barras's approval of the revised agreement template Wednesday is only one piece of the puzzle: Treasury must still implement the changes.
A Bigger Pattern Across State Spending
The scrutiny lands amid a broader rise in state payments flowing to outside organizations. Annual payments reported by 25 Louisiana departments climbed from $723.7 million in fiscal 2022 to $942.4 million in fiscal 2025 — a jump of about 30% — and a separate Legislative Auditor's report tracked nearly $3.3 billion in payments to nongovernmental entities over four fiscal years, according to New Orleans CityBusiness. As of August, applicable agencies had reportedly not yet begun reporting payments covered by new TRUST Act rules, the outlet noted.
Governor Jeff Landry weighed in on social media, writing on X that Inspector General Davis “found serious oversight failures in $113.5M of taxpayer-funded NGO spending” and that “her work protects YOUR tax dollars,” adding that fighting “waste, fraud, and abuse” has been a priority since taking office. For now, the central question — how much of this year's $113.5 million has actually reached the 272 organizations, and under what conditions — remains unanswered in the review itself.
