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News
FOR IMMEDIATE RELEASE
August 19, 2008
Contact: Michael DiResto, 225-342-7000
Baton Rouge - Commissioner of Administration Angele Davis has issued guidelines to all state agencies to tighten accountability of state money non-governmental organizations receive through line item appropriations in the budget.
Governor Bobby Jindal issued Executive Order No. BJ 2008-30 - "Accountability for Line Item Appropriations" - outlining requirements and disclosures by recipient entities necessary for cooperative endeavor agreement contracts to be signed by state agencies and approved by the state Office of Contractual Review.
Guidelines issued by the Commissioner further the accountability measures, particularly relative to the method used by state agencies to disburse funds.
"Just as Governor Jindal established NGO criteria for greater transparency and objectivity in the appropriation of state tax dollars for state priorities, this executive order and these guidelines aim to increase accountability by verifying that the money is being used properly," Davis said.
Following legislative passage of the budget, Gov. Jindal vetoed 218, or 60 percent, of the 370 NGO line-items lawmakers placed in the budget, leaving funding of 152 line item appropriations totaling $17.7 million. In general, the executive order and guidelines apply to all NGOs receiving line item appropriations. It also applies to any public or quasi-public entity receiving a line item appropriation for which a budget request was not submitted.
Other changes include requiring that representatives of these appropriations disclose whether any state elected or appointed official, as well as any family member of the official, is receiving anything of economic value as a result of the appropriation. Further, the Executive Order requires a detailed description of the public purpose sought to be achieved through the appropriation which must conform to the program described in the appropriations bill.
The guidelines establish further accountability through a preferred cost reimbursement method of disbursement of funds, but also allows for limited advance payment under specific circumstances supported by a business plan.
Davis added, "Cost reimbursement is the most effective accountability measure to make sure funds are being utilized the way legislators intended. Recipients may obtain funding in advance provided they demonstrate and justify need by submitting a business plan commensurate with the complexity of the funded activity. Whether the organizations are large or small, it is not too much to ask these recipients of taxpayer money to demonstrate that they are using taxpayer money in the way it's supposed to be used."
The executive order, guidelines, and format for cooperative endeavor agreements for line item appropriations can be found at OCR's website at http://www.doa.louisiana.gov/ocr/index.htm. |
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