Treasurer Kennedy Refers 19 NGOs to Office of Debt Recovery and 28 to Legislative Auditor

BATON ROUGE, LA – State Treasurer John Kennedy announced today that 19 non-governmental organizations (NGOs) have missed the announced September 4 deadline to submit legally required financial paperwork and will be referred to the Office of Debt Recovery (ODR) for collection of monies owed to taxpayers and the Legislative Auditor for a thorough review. In addition, Treasury will refer 9 other NGOs not yet certified compliant to the Legislative Auditor for a similar review.

“Of the over 300 NGOs our office has reviewed since 2006, these 34 entities have had ample opportunity and more than sufficient time to fulfill their legal obligations,” said Treasurer Kennedy. “The clock has run out, and the time is now to find out what happened to this taxpayer money, and I’m asking the Legislative Auditor to help us find out.”

Treasurer Kennedy recently put 34 NGOs on notice that they had until September 4 to fully furnish the required financial paperwork for state appropriations they received in the past. The Treasury sent final demand letters on August 13 to those NGOs who continued to ignore warnings about their obligations under the Governor’s Executive Order (BJ 2009-30).

Per the Executive Order, first established by Gov. Blanco and renewed by Gov. Jindal, NGOs that were appropriated taxpayer money are required to submit progress reports andcorresponding documentation to the Treasury in order to maintain their appropriation, or return the funds to the taxpayers. With the establishment of the Office of Debt Recovery under the Department of Revenue and Attorney General’s Office, the Treasury now can turn these debts over for collection.

Since Treasurer Kennedy’s announcement, 7 entities came forward with the necessary reports and documentation to come into compliance or partial compliance. Another 9 have sent information to Treasury staff and will be given a limited amount of additional time to come into full compliance. Those 9 entities however will also be referred to the Legislative Auditor for review pending Treasury’s final determination on whether to send them to ODR.

“The establishment of the Office of Debt Recovery has been essential in this effort, as it has no doubt motivated the NGOs that are now in good standing to come forward,” said Treasurer Kennedy. “The Debt Recovery Office will have the tools and the teeth under the law to collect the millions owed by these delinquent NGOs as one of its first orders of business.”

Sarah Mulhearn
(225) 342-0012