(The Center Square) — Nearly $1 billion in fiscal mismanagement, waste, and compliance failures were uncovered across Louisiana government agencies in a recent year-end audit report released by Legislative Auditor Mike Waguespack.

The report details finding ranging from improper Medicaid billing to missed state revenues and repeated control failures.

The Louisiana Department of Health accounted for the largest share of flagged deficiencies, with more than $730 million in questioned costs or errors.

Auditors found $248 million in federal Medicaid expenditures for which there was no documentation showing matching state funds, triggering $168 million in potential federal clawbacks.

Another $87.6 million was flagged due to the agency’s failure to update cost-share tables for the Medicaid program.

LDH also paid over $102 million in managed care payments for beneficiaries who had driver’s licenses from other states, and continued to issue behavioral health payments amounting to $14.4 million despite lacking proper billing controls — a problem identified for the sixth straight year.

In addition to the health department’s issues, the Department of Transportation and Development was cited for under-collecting $79.8 million in permitting revenue during fiscal year 2024.

Auditors noted that had permit fees been adjusted for inflation over time, the state could have brought in $111.2 million instead of $31.4 million.

The Department of Public Safety and Corrections also received criticism. The Office of State Police failed, for the sixth consecutive time, to properly tag and record property purchases totaling $9.4 million.

The Office of the State Fire Marshal, meanwhile, processed $3.3 million in payroll without ensuring employee timesheets were properly certified or approved by supervisors.

Local government agencies were not spared. The Jefferson Parish Sheriff’s Office lost over $1.1 million in a phishing scheme after implementing a fraudulent request to change bank account information. Only $292,964 of the funds were recovered.

At Louisiana State University at Eunice, auditors reported that $3.3 million in delinquent student accounts were never submitted to the Attorney General’s office for collection, despite a third year of warnings.

University officials agreed with the finding and said the issue stemmed from staff shortages after efforts to address the backlog stalled.

“It is our intention to do so,” LSUE wrote in reference to submitting the accounts for collection, adding that all outstanding accounts prior to fall 2024 will be reviewed as part of a broader data system update.

Additionally, the school paid over $216,000 in payroll without proper documentation or approval. LSUE acknowledged that approvals were lacking in those cases, stating, “We support the increases for these employees, [but] we recognize that there was a lack of comprehensive documented approval.”

The Louisiana Workforce Commission was flagged for a sixth straight year for failing to properly monitor audits for federal job training funds. More than $40 million in Workforce Innovation and Opportunity Act funds went to subrecipients with little oversight. The agency also submitted more than $25 million in subawards either late or with reporting errors, auditors found.

In response, the agency emphasized that it has taken “concrete steps to correct the issues,” including an approved corrective action plan submitted to the U.S. Department of Labor.

“We recognize that repeated findings demand more than incremental change,” LWC stated. The agency said it has repositioned its Monitoring Unit for stronger internal oversight and adopted stricter timelines and revised procedures.

Elsewhere, the Louisiana Stadium and Exposition District had to make audit adjustments for up to $281 million in financial statement errors. The Office of Public Health’s Drinking Water Loan Fund and the LSU Health Sciences Center in Shreveport were also cited for repeated reporting and internal control issues.

The audit fulfills state reporting requirements under Act 461, which mandates quarterly reports on fiscal deficiencies involving $150,000 or more.

Many of the issues flagged in this report were repeat violations, underscoring what auditors described as ongoing weaknesses in internal oversight and financial compliance across multiple state agencies and local jurisdictions.

The Legislative Auditor’s office submitted the findings to the governor, attorney general, and other oversight authorities. Lawmakers are expected to review the results in upcoming budget hearings, with the potential for further legislative scrutiny or corrective measures.