July 24, 2025
A state audit reveals a lack of documentation supporting how state-issued funds were spent.
A New Orleans organization created to provide job training and placement, as well as help prevent evictions, spent nearly half of its state funding on charitable bingo games that generated less money than they cost, according to the Louisiana Legislative Auditor.
According to the audit released on July 21, experts stated that the National Association for African American Economic Development (NAAAED) received $400,000 from the state of Louisiana in the previous year. Records showed that it spent nearly half ($199,568) on hosting bingo games, which were intended to generate funds for its mission, an activity prohibited under its cooperative endeavor agreement with the state.
The audit also revealed that the organization awarded $185,000 to businesses and other recipients but failed to document how that money was used. The auditor’s review also found the association spent more than $52,000 to rent the building where it held its bingo games in the Central City neighborhood near the New Orleans Superdome.
NAAAED founder, Myron Lee Sr., admitted that the organization stretched its budget too thin.
“We tried to catch up with it as best we could,” Lee told Louisiana Illuminator. “ We tried to make it work as best we could, and I think we got kind of overzealous.”
Lee said he overestimated the community’s interest in attending the bingo games meant to raise money for the organization.
“We didn’t have the visibility that we would have normally had at another location, which probably could have garnered more people to come.”
Under its cooperative endeavor agreement with the state, the association is required to distribute approximately $680,000 to meet its goals, which include enrolling at least 125 individuals in training programs, securing job placement, and providing eviction prevention services by June 30, 2024. The organization must also submit a quarterly progress and cost report regularly. As of March 5, the association had not submitted any reports demonstrating that it fulfilled the terms of its agreement.
The records showed that the NAAAED paid $115,000 to Proficient Media Services, a production company that Lee claimed was to create a film that would “stimulate the local economy” while providing film-related job training, such as camera, lighting, and sound work. Lee told the Louisiana Illuminator that NAAAED and Proficient Media produced “a series of documentaries” where students participated in various production roles. According to the audit report, NAAAED paid $23,000 to an unnamed program director and spent $50,000 on cameras and set design equipment.
In his written response to the auditor, Lee stated that his organization will hire a certified public accountant to help bring it into compliance with the state’s required rules as well as improve its record-keeping practices.
“Our administrative assistant will be more involved in ensuring timely submission of reports. Consistent with our corrective action plan, we will engage general counsel to advise us of legal contractual matters/obligations with respect to the state contracts. This will ensure that the same mistakes are not made again,” Lee wrote.
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