Louisiana's National Guard will be restructured into the Governor's Office of Homeland Security and Emergency Preparedness, Gov. Jeff Landry said Thursday.

Under Landry's order, the agency will now have Brig. Gen. Jason Mahfouz serving as its interim director and responsible for its day to day operations, with the oversight of his commanding officer, Louisiana National Guard Adjutant General Maj. Gen. Thomas Friloux.

"GOHSEP Director Jacques Thibodeaux took on a challenging role and served our state with dedication under difficult circumstances," Landry said in a release. "We deeply appreciate his service. As governor, I was elected with a commitment to cutting waste and streamlining government. As part of our fiscal responsibility initiative, we've identified an opportunity to save millions by bringing GOHSEP under the National Guard.

"This move not only delivers significant cost savings but also aligns with my belief in the importance of relying more on our National Guard to strengthen our state's resilience."

The move comes after two years of audits that showed the agency hasn't complied with federal reporting requirements for disaster relief grants.

The audit by the Louisiana Legislative Auditor's Officet showed the agency Hazard Mitigation Grant and Flood Mitigation Assistance subawards were submitted late and there was a lack of internal controls over these grants.

According to the audit, the agency was late on 36% of the Hazard Mitigation Grant subawards and in arrears on 80% on the Flood Mitigation Assistance subawards.

"The finding related to GOHSEP's compliance with applicable laws and regulations should be addressed immediately by management," Legislative Auditor Mike Waguespack said in the report.

The agency says it has a corrective plan that it will execute in the next 90 days.

According to the fiscal 2025 state budget, the state homeland security agency had a budget of $3.15 billion, with most of that coming from federal funds ($2.4 billion).