LOUISIANA LEGISLATIVE AUDITOR
DARYL G. PURPERA, CPA, CFE
May 6, 2015
Ms. Dinah Landry, Executive Director,
and Members of the Board of Directors
Cameron Council on the Aging, Inc.
965 Highway 384
Lake Charles, Louisiana 70607
Dear Ms. Landry:
As you are aware, my Investigative Audit staff visited the Cameron Council on the
Aging, Inc., (CCOA) to examine certain financial transactions. This letter briefly summarizes
the results of our work. We stress the importance of addressing this issue and encourage you to
consider our recommendation as you work to resolve the following.
Louisiana Revised Statute (La. R.S.) 46:1601, et seq. provides for the creation of parish
councils on aging. Charters are issued by the Louisiana Secretary of State upon approval by the
Governor’s Office of Elderly Affairs (GOEA), the state agency that distributes funding to
councils on aging. CCOA is a non-profit, quasi-public agency and is subject to audit by this
office pursuant to La. R.S. 24:513 and La. R.S. 46:1602. Moreover, pursuant to La. R.S.
46:1605, councils on aging are required to comply with the objectives of state laws and are
governed by the policies and regulations established by the GOEA.
Insurance Benefits Provided to Former Employee
Records indicate that CCOA paid insurance benefits totaling $16,614 for former
employee Lori Broussard after Ms. Broussard left employment with CCOA. According to
policy, CCOA “offers all full-time employees a group medical insurance plan.… If funding is
available, the agency pays as little as 24% or as much as 100% of the policies for employee
coverage only.” Although Ms. Broussard’s employment with CCOA terminated on October 28,
2013, CCOA allowed Ms. Broussard to remain on its group medical and supplemental insurance
plans and paid 100% of her premiums for 14 months, from November 2013 through December
2014. Records indicate that CCOA used public funds received from the GOEA to pay insurance
premiums, including the premiums paid on behalf of Ms. Broussard.
On December 17, 2014, Ms. Dinah Landry informed us that she was aware that CCOA
continued to provide insurance benefits to Ms. Broussard. She stated that Ms. Broussard’s new
employer did not provide insurance benefits, so she allowed Ms. Broussard to continue on
CCOA’s plan. Ms. Landry further stated that the plan was to have Ms. Broussard reimburse
1600 NORTH THIRD STREET • POST OFFICE BOX 94397 • BATON ROUGE, LOUISIANA 70804-9397
WWW.LLA.LA.GOV • PHONE: 225-339-3800 • FAX: 225-339-3870
Ms. Dinah Landry, Executive Director,
and Members of the Board of Directors
Cameron Council on the Aging, Inc.
May 6, 2015
Page 2
CCOA once the insurance benefits were no longer needed. Ms. Landry contacted LLA
representatives the following day, on December 18, 2014, and informed us that Ms. Broussard
had been removed from CCOA’s insurance plans and that Ms. Broussard had made arrangements
to reimburse CCOA.
Ms. Broussard stated that she was “let go” from CCOA in October 2013 after the grant
that paid her salary ended. She stated that she went to work for a CCOA contractor that operated
Grand Lake Elderly Apartments. Ms. Broussard stated that it was her understanding that CCOA
and her new employer would cover the costs of her insurance and that she did not plan to
reimburse CCOA for the cost of her health insurance premiums.
By providing insurance benefits for an individual that did not work for CCOA,
Ms. Landry may have violated not only CCOA policy, but also Article VII, Section 14(A) of the
Louisiana Constitution,1 which prohibits the donation of public funds.
We recommend that CCOA consult its legal counsel regarding recovery of amounts
improperly paid for health insurance premiums. We further recommend that CCOA
management develop and implement policies and procedures to ensure that insurance benefits
are paid in accordance with CCOA policies and the Louisiana Constitution. Should you have
any questions, please call Greg Clapinski or Sandra Whitehead at (225) 339-3800.
Sincerely,
Daryl G. Purpera, CPA, CFE
Legislative Auditor
DGP/aa
CAMERON COA 2015
1
Louisiana Constitution Article VII, Section 14(A) provides, in part, that “Prohibited Uses. Except as otherwise
provided by this constitution, the funds, credit, property, or things of value of the state or of any political subdivision
shall not be loaned, pledged, or donated to or for any person, association, or corporation, public or private.”
APPENDIX A
Responses
A.1
A.2