Treasurer Kennedy Says State Should Take a Closer Look at Organization's Expenses

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 reportshows 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. The contracts include:

Contract Number Agency Amount Purpose
659754 Department of Social Services $108,170 Freedom school
590134 Department of Social Services $64,927 Teen pregnancy prevention
575296 Department of Education $15,500 K-12 academic assistance
623552 Department of Education $15,456 Summer enrichment
613054 Department of Education $15,454 Summer enrichment
598889 Department of Education $14,655 After school tutoring
564915 Department of Education $14,500 Summer enrichment
589178 Department of Education $14,265 K-12 academic assistance
538175 Department of Education $12,587 After school tutoring
554650 Department of Education $12,018 K-12 academic assistance
518104 Department of Education $7,268 Summer enrichment/camp
524064 Department of Education $4,403 After school tutoring
512711 Department of Education $4,317 After school tutoring
533036 Department of Education $3,525 Summer enrichment
533145 Department of Education $3,525 Summer enrichment

“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.

Contact:
Sarah Mulhearn
(225) 342-0012
smulhearn@treasury.state.la.us