State Sen. Yvonne Dorsey-Colomb, D-Baton Rouge, thinks Louisiana Treasurer John Kennedy mistakenly placed her husband's nonprofit agency on a list of groups not adhering to state financial reporting laws. The treasurer's office denied that, and said the group had been contacted on several occasions to account for state funds it had received. "I think that the documents may be...
State Sen. Yvonne Dorsey-Colomb, D-Baton Rouge, thinks Louisiana Treasurer John Kennedy mistakenly placed her husband's nonprofit agency on a list of groups not adhering to state financial reporting laws. The treasurer's office denied that, and said the group had been contacted on several occasions to account for state funds it had received.
"I think that the documents may be in (Kennedy's) office and they're lost," Dorsey-Colomb said Tuesday. She said she has seen the financial data and thinks recent office moves by the treasurer might account for what she believes is a mistake.
View full sizeState Sen. Yvonne Dorsey-Colomb, D-Baton Rouge Last month, Kennedy released a list of 36 non-governmental organizations that are not complying with financial reporting and transparency rules for groups receiving state funds.
One of these groups, the Colomb Foundation, was founded by Dorsey-Colomb's husband, Sterling Colomb Jr. The foundation works to raise funds and awareness for breast cancer, and educates women and children about healthy eating habits, safety and awareness.
According to the information supplied by Kennedy, the foundation hasn't provided full financial accounting for $300,000 appropriated from the state general funds in 2007.
According to an executive order initiated by Gov. Kathleen Blanco and re-signed by Gov. Bobby Jindal, any group that receives funds from the general budget must provide "a comprehensive budget, detailed description of the public purpose and detailed cost information outlining the use of the appropriated funds."
The Colomb Foundation also received $370,000 from the capital outlay budget -- which doesn't have the same financial reporting rules -- between 2007 and 2011 for building and grounds improvement, planning and construction.
In 2011, Kennedy sent the foundation a letter notifying its staff that reporting deadlines for the general fund money would be extended until January 2012. When the foundation still didn't respond to requests for full financial data by that date, a second letter was sent, on Feb. 28, 2012, to inform them that they needed to return the full $300,000 to the treasury.
However, at the time, the treasurer's office had no legal mechanism to demand that the money be returned. The Colomb Foundation, along with the 35 other NGOs on Kennedy's list, got a free pass.
That changed this year, when lawmakers passed legislation to create the Office of Debt Recovery, a centralized, one-stop shop for state debt collection under the Department of Revenue.
The new office has the legal authority to collect delinquent debts owed to or collected by the state. The bill creating the office was given nearly unanimous support by the state senate, including Dorsey-Colomb.
Kennedy's office said Tuesday that no NGO from the list of 36 has come into full compliance since Kennedy's July 29 announcement, but about one-third of the groups have been in touch with his office. The office is planning to issue a detailed list of what documents are needed from each group.
The official deadline to come into compliance is Sept. 4, the treasurer's office confirmed Tuesday. After that, Kennedy will turn over the names of the noncompliant NGOs to the Office of Debt Recovery.
Dorsey-Colomb said she is "not involved in the day-to-day of any nonprofit," including her husband's. But both she and Kennedy's office confirmed that her staff has contacted the treasurer to ensure that all necessary documentation for the foundation is complete before the deadline.
Dorsey-Colomb said the foundation as well as other nonprofit groups in the capital city and beyond are necessary staples in their communities that provide services not offered by the state, schools or family members.
"There's a perception out there, from I don't know where, that the programs don't have worth. And we took money from universities to do that," she said Tuesday. "These programs provide a valuable service to the people in the community."