When the Audits Start Squeaking

Disclaimer: I am not an attorney or an accountant. This article reflects my understanding of the public records that are currently available to me. I am still waiting on records requested in February, so this investigation only includes documents that have been turned over so far and my interpretation of them.

Government works best when the public can clearly see how decisions are made.

The documents reviewed here raise questions about financial oversight, nonprofit compliance, and how federal relief funds have been distributed in Ouachita Parish.

None of these issues automatically mean that wrongdoing occurred. But they do highlight the importance of clear reporting, consistent oversight, and transparency from those entrusted with public funds.

When millions of taxpayer dollars are involved, the public deserves answers.

The Ouachita Parish Police Jury is responsible for overseeing millions of dollars in taxpayer funds. This includes federal pandemic relief money, infrastructure spending, and parish contracts.

Six elected jurors make those decisions.

At the same time, state corporate filings show that several businesses connected to those jurors have experienced administrative issues with the Louisiana Secretary of State. Some entities appear in state records as “not in good standing” or “revoked.”

These filings offer a glimpse into the overlap between public leadership and private business compliance among the officials responsible for managing parish finances.

But the business filings are only one part of the story.

A review of financial statements, nonprofit tax filings, and ARPA grant documentation reveals several questions about how federal pandemic relief funds have been administered in Ouachita Parish.

Audit Findings Raise Questions

The 2022 Independent Auditor’s Report for the Ouachita Parish Police Jury identified concerns related to financial reporting.

Auditors issued an adverse opinion related to the Jury’s discretely presented component units. According to the report, the financial statements did not include financial data for several legally separate entities for which the Police Jury is financially accountable. Because of that omission, the financial position of those component units could not be reasonably determined.

Auditors also noted discrepancies in the Police Jury’s Schedule of Expenditures of Federal Awards, often referred to as the SEFA. The management letter reported differences between reported federal expenditures and expected totals. This suggests weaknesses in how federal funds were being tracked.

These findings matter even more when you consider the amount of federal funding involved.

$29.7 Million in Federal ARPA Funding

The Ouachita Parish Police Jury received approximately $29.7 million through the American Rescue Plan Act, also known as ARPA. This federal program was designed to help local governments and communities recover from the economic and public health impacts of COVID-19.

These funds must be obligated by December 31, 2024 and fully spent by December 31, 2026.

To help manage the program, the Police Jury approved a $500,000 contract with Hunt, Guillot & Associates on April 4, 2022. The contract covers ARPA administration and project consultation services.

ARPA performance reports categorize the agreement as a definitive contract, listed as Subaward No. HGA 1, with a performance period running through December 21, 2026.

By the first quarter of 2024, parish records show that $193,431.94 had already been spent from the consulting budget.

HGA’s role includes reviewing proposed projects, determining whether they meet federal eligibility guidelines, and monitoring grant recipients for compliance.

This places the consulting firm in the middle of the process that connects the Police Jury’s oversight with the nonprofit organizations receiving ARPA funding.

ARPA Grants and Nonprofit Networks

Some of the projects reviewed through the ARPA program involved funding requests from nonprofit organizations. These include the Monroe Regional Black Chamber of Commerce and the Northeast Louisiana Black Chamber of Commerce.

In May 2024, the Police Jury approved a corrective action plan recommended by HGA regarding the Northeast Louisiana Black Chamber of Commerce and its use of ARPA funds.

Corrective action plans are typically used when additional documentation or reporting adjustments are needed in order to meet federal grant requirements.

Another organization connected to ARPA funding is the Ouachita African American Historical Society.

Public records show that the organization received:

• $59,416 in economic hardship funding
• $199,000 for community programming

State corporate filings show that the organization has appeared in Secretary of State records as “Not In Good Standing” because of missing filings.

Administrative issues like this can sometimes be resolved by submitting updated paperwork. Still, it raises questions about whether regulatory compliance was considered during the grant review process.

Additional connections also appear among businesses and nonprofit leadership tied to entities operating from 348 Music Road. Several companies managed by Sonya and Ivory Jacobs share leadership connections with organizations involved in ARPA funding discussions.

Questions About Spending Transparency

Once funds leave the Police Jury’s accounts, it becomes more difficult to track how that money is ultimately spent.

Tax filings from the Ouachita African American Historical Society’s 2024 Form 990 show that the organization reported $311,302 in total expenses.

Of that amount, $272,749 was categorized simply as “Other Expenses.”

Multiple years of filings, including 2019, 2022, and 2024, contain identical explanations in Schedule O stating that the category was used to provide a more detailed listing of expenses.

However, the filings themselves do not actually break down those expenses into separate categories. Instead, most of the organization’s spending is grouped together in a single line.

Public filings also show that the organization reported taking out a loan in 2020 in order to remain solvent. This occurred shortly before the organization received more than $250,000 in ARPA-related funding.

Nonprofit reporting rules do allow certain expenses to be grouped together. Still, the lack of detailed breakdowns makes it difficult for the public to see exactly how those funds were used.

The Bigger Picture

Taken together, these records highlight several issues connected to the administration of federal pandemic relief funds in Ouachita Parish.

These include:

• An adverse audit opinion related to financial reporting
• Discrepancies in federal expenditure tracking
• A $500,000 consulting contract tied to ARPA compliance
• Nonprofit grant recipients with regulatory compliance issues
• Limited transparency in nonprofit spending reports

Ultimately, responsibility for approving contracts, grants, and funding decisions rests with the six elected members of the Ouachita Parish Police Jury.

As nearly $30 million in federal relief funding continues to move through parish programs, the strength of those oversight systems will determine how effectively the public can track where that money goes and how it is used.