JACKSON, Miss. (WJTV) – State Auditor Shad White (R-Miss.) announced a report showed taxpayer funds were spent on employee salaries, gift cards and gym memberships by nonprofit organizations that received government grants from the Mississippi Department of Health (MSDH) and the Mississippi Department of Human Services (MDHS).

According to White, MSDH was charged with using taxpayer funds to decrease diet-related diseases among “disadvantaged Mississippians.” He said the agency paid more than $250,000 to My Brother’s Keeper (MBK). Analysts at the State Auditor’s Office found questionable expenditures from MBK, including:

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• The nonprofit underspent on providing services and overspent paying salaries to its own employees. In total, 55% of the subgrant paid for MBK employee salaries and administration.
• Nearly $7,000 was spent on “incentive” gift cards reimbursed to MBK despite MSDH not having any documentation showing whether these gift cards were distributed appropriately.
• Nearly $45,000 was spent on meal subscriptions, upscale grocery store gift cards, and gym memberships reimbursed to MBK despite MSDH not having documentation showing whether these were appropriate expenditures.

White said the report showed other examples of questionable spending at other nonprofits, including:

• 100 Black Men of Jackson was given $40,000 to address health disparities among African American youth. The nonprofit spent $2,400 on gift cards, headphones and speakers, and nearly $2,000 on 90 T-shirts.
• The Juanita Sims Doty Foundation received more than $2.4 million from MDHS that flowed from the Temporary Assistance for Needy Families (TANF) program. IRS records show the executive director of the nonprofit was paid $106,050 in 2022 and $118,447 in 2023.

White said the findings of the audit will be reported to the Mississippi Attorney General’s Office.