Jackson Parish Hospital Audit Finds Nepotism, Mismanagement and Improper Payments, as Former Employees Await Trial

A Jackson Parish Hospital financial audit released Monday found that two former hospital employees received a combined $123,157 in payments for accrued leave, supplemental health insurance and uniforms to which they were not entitled.

The audit further found that, over that same time period, one of those former employees, human resources employee Elizabeth Cheatwood, received a stipend of $26,072 for health insurance to which she was not entitled.

The other employee, accounts payable clerk Vickie Booker, admitted to taking cash from the hospital’s collections and depositing it into her personal bank account or spending it. Hospital records show that form January 2012 to December 2014, the hospital collected $121,968 in cash that was never deposited into its operating bank account.

These findings were first revealed in an investigative audit of Jackson Parish Hospital Service District No. 1 (“Jackson Parish Hospital”) the Legislative Auditor released back in April 2015.

The investigative audit began after a private investigator contracted by the hospital discovered suspected criminal activity and notified both the Jackson Parish Sheriff’s Office and the Louisiana State Police, who then notified the state auditor.

This latest financial audit, conducted by the independent CPA firm Langlinais, Broussard & Kohlenberg, covers the hospital’s fiscal year ending Sept. 30, 2014. The audit notes that mismanagement of payroll deductions between 2009 and 2014 resulted in the hospital paying more than $200,000 for employee benefits that should not have been paid.

The audit further notes that the Jonesboro public hospital employed two immediate family members in its pharmacy department, with one serving as the department director -- a possible violation of Louisiana law governing public agencies.

Cheatwood and Booker were both arrested in March, just weeks before the release of the investigative audit. Cheatwood’s husband, a former sheriff’s deputy, and the hospital’s pharmacy director were also arrested at that time.
In the financial audit released Monday, hospital management notes that both former employees are now awaiting trial. Cheatwood faces multiple counts of felony theft, forgery, distribution of a legend drug, criminal conspiracy, attempted conspiracy, and obstruction of justice. Booker faces three counts of felony theft.