Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

May 8, 2017

Audit Finds EBR Council on Aging Used Public Resources To Support Political Action Committee

The East Baton Rouge Council on Aging used public resources – including money, staff time, and the Council’s nonprofit postage permit – to operate a political action committee supporting a tax proposition on the November 2016 ballot, the Legislative Auditor said in a report released today. In addition, the Council received $12,585 in disaster-related overtime salary reimbursements that it could be required to repay and was unable to provide adequate documentation for several credit card charges.

Auditors found that between February and December 2016, the Council’s management and staff used work time to run Support Our Seniors (SOS), a political action committee created to push for voter approval of a tax to increase the Council’s funding. The Council also donated $24,830 generated from ad sales and sponsorships to SOS and used $6,523 in public money to pay SOS’s expenses. The majority of the expenses were incurred using the Council’s credit card, and the Council was reimbursed after the election. However, auditors identified another $9,132 in expenses apparently paid on SOS’s behalf for which the Council was not reimbursed.

Both the Louisiana Constitution and state law prohibit the use of public funds to encourage citizens to vote for or against a candidate or proposition. Federal Treasury regulations also prohibit tax-exempt organizations from participating in political activities. In addition, the Council’s donation of ad and sponsorship revenue to SOS, and its payment of SOS’s expenses, could be considered a donation of public funds, which would be a violation of the state’s Constitution and laws.

Auditors also found that, between July and October 2016, the Council’s management used its U.S. Postal Service nonprofit postage permit to mail 34,369 pieces of SOS’s mail. As a result, SOS received a discount of $3,691 on its postage. However, U.S. Postal Service regulations say political organizations “do not qualify for the nonprofit standard mail prices, even if organized on a nonprofit basis.”

In addition, auditors found that in October 2016, the Council received $12,585 in federal reimbursements for disaster-related overtime for employees who may have been ineligible. The Council could be required to repay the money if the Federal Emergency Management Agency (FEMA) determines the reimbursements were improper.

Auditors also noted that the Council failed to maintain adequate documentation for credit card purchases. Between December 2015 and November 2016, employees used the Council’s credit card for 281 charges totaling $30,993. However, auditors could not find adequate support for 57 of those charges, which totaled $3,612.

For more information contact:

Legislative Auditor
225.339.3800



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