BATON ROUGE, La. — Gov. Jeff Landry and State Inspector General Angele Davis are urging State Treasurer John Fleming to strengthen oversight of nonprofit appropriations following a review that identified weaknesses in payment practices, financial monitoring, vendor verification and performance reporting.
The review examined appropriations authorized under Acts 3 and 961 of the 2026 regular legislative session, which provide $113.5 million for 272 nongovernmental organizations. The Louisiana Department of the Treasury administers approximately $107.2 million of that funding, according to the governor’s office.
Davis, who also serves as chief integrity officer, outlined recommendations intended to address those weaknesses and prevent improper payments before funds are disbursed.
The governor’s office cited several examples, including an $800,000 appropriation to the National Association for African American Economic Development. Treasury advanced $400,000, and the Legislative Auditor found that $205,123 had moved out of the dedicated account within six months. Required progress and cost reports were not filed, according to the announcement.
A Treasury referral stopped the second $400,000 payment.
In another case, Treasury advanced Divine Kingdom Ministries $37,500 against a $75,000 appropriation. A review of a cost report prompted a referral to the Inspector General’s Office.
The resulting investigation, conducted with assistance from the Louisiana Bureau of Investigation, led to the director’s arrest Sept. 22 on felony theft and false public records charges, according to the governor’s office. The charges are allegations, and the director is presumed innocent unless proven guilty.
The announcement also described two recipients without identifying them.
A review of one 2026 recipient found that its cost report did not identify vendors and that $13,000 of $46,615.88 in claimed costs went to connected parties.
An agreement involving a 2025 recipient listed subcontractors responsible for 90% of a $250,000 award as “To be determined.” It also included a $25,000 flat administrative fee and authorized a 50% advance based on a one-sentence justification.
The administration said the review is part of its broader spending oversight efforts through LA DOGE and the Louisiana Taxpayer Protection Initiative.
The announcement did not include a response from Fleming or a timetable for implementing the recommendations.