Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

November 7, 2016

St. Bernard Hospital District, Foundation Spent More Than $97,000 on Parties, Dinners, Gifts

An investigative audit of the St. Bernard Parish Hospital Service District and the St. Bernard Hospital Foundation Inc. found that public funds exceeding $97,000 were spent for holiday parties, meals at local restaurants, and gifts and door prizes for physicians and employees, the Legislative Auditor said in a report released today. Such use of public money could be a violation of the State Constitution, which forbids the donation of public funds to any person, association, or corporation, public or private.

The investigation was conducted after the Legislative Auditor’s office received complaints about improper transactions involving the hospital and the Foundation.

Auditors found that the District and the Foundation paid $73,965 for such events as Christmas parties and other celebratory functions between 2012 and 2015. Foundation employees and the District’s volunteer executive director also charged $23,185 on District credit cards for employee meals at local restaurants, birthday celebrations, and gifts and door prizes. Twenty-two of the 98 credit card charges that auditors reviewed did not include receipts detailing what was purchased, which may violate the state records retention law.

In addition, the state auditor said, the Foundation paid $1,521,940 to a professional services contractor between July 2012 and March 2016, but the work performed by the contractor could not be verified because the invoices did not always include enough detail, and, in some instances, no written contract was in effect.

As part of the audit process, auditors requested relevant records during their fieldwork. State law requires that all auditees and their officials and staff furnish such information. However, in this instance, some of the available records were not provided until auditors had finished writing their report.

For more information contact:

Legislative Auditor
225.339.3800



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