LA Treasurer Calls for Further Scrutiny of Light City's State Contracts
POSTED: Tuesday, November 12, 2013 - 4:30pm
UPDATED: Tuesday, November 12, 2013 - 4:34pm
BATON ROUGE, LA (NBC33) — BATON ROUGE, LA - Light City, a non-profit organization in New Orleans that failed to properly document federal expenses, also has state contracts, according to State Treasurer John Kennedy.
A recent Legislative Auditor's report shows that Light City received more than $854,212 in federal aid for repairs and related costs following Hurricane Katrina. According to recent media reports, the organization did not provide sufficient documentation for $326,632 in expenses and only had $59,755 left in the account where federal aid dollars were deposited. The Auditor also questioned unsubstantiated proposals Light City submitted to support compliance with federal procurement requirements.
Light City also has more than a dozen contracts with the Department of Social Services and the Department of Education totaling $310,570.
"In light of the substantial abuse of taxpayer money by some NGOs, which deprives funding for essential priorities such as roads, universities and coastal restoration, further scrutiny of Light City's contracts with state agencies is essential," said Treasurer Kennedy.