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The long-awaited investigative report into the finances of the City of Bogalusa has officially been released by the Louisiana Legislative Auditors Board. The 71-page report details the mishandling of city funds between July 2022 and April 2024, and could bring criminal charges for some involved. Copies of the report have been delivered to the state Attorney General and District Attorney Collin Sims, as required by state law.

Among the key findings in the report is that in late December of 2022, former mayor Wendy O’Quin Perette issued unauthorized bonus payments to city employees and officials totaling almost half a million dollars. These payments appear to have been made with funds that were received as part of an American Rescue Plan grant, money that was designated for use in assessing and repairing the city’s failing sewerage system.

The report also notes the transfer of $400,000 from the ARPA fund into the general fund in April of 2023, under newly elected mayor Tyrin Truong, and states that no documentation could be found that gave a reason for this transfer or verify that the funds were used according to the specific authorized purposes in the grant.

The report states that the City of Bogalusa has failed to provide a satisfactory budget for fiscal years 2023 and 2024, and details the city’s lack of organization and proper planning to provide said budgets in a timely manner, in violation of the state budget act.

The city recently passed a contentious budget for fiscal year 2024 after months of back and forth between the mayor’s administration and the city council. The budget came months late, and while still awaiting final audits of the budgets from 2022 and 2023.

Also in the report was a section that detailed several contracts that were entered into by Mayor Truong early in his term without approval from the city council, some of which were officially tabled by the city council. Mayor Truong stated that he was unaware of the requirement for council approval at first, and has since adhered to this city charter rule.

Upon entering office, Mayor Truong began reorganizing the city government by creating new director-level positions, the salaries of which totaled $190,000. He created these positions and set the salaries without authorization from the city council, despite acknowledging through email that he was aware of this requirement.

Separate portions of the report cover overpayments to city employees and officials, some as “contract overtime,” and some as payouts for unused vacation and sick leave. These payments totaled over $360,000, and the methods by which they were made has been questioned. City policy states that these payments are to be made upon termination of an employee or at the end of the year, but some employees allowed the time to accrue over several years to receive the payouts at their increased pay rates, and in large lump-sums. Review of the union contract with the city found no mention of “contract overtime.”

There are many other discrepancies listed in the official report, including the failure to mark a city vehicle per state law, the criminal handling of a mosquito abatement contract, the misappropriation of retirement funds for Fire and Police Departments, non-compliance with a fiscal review plan issued to the city in 2019, and failure to adhere to public information laws within the state. A host of state laws and city charter rules were violated by the city government during the time period covered by the report, which spans two mayors.

It is unclear if criminal charges will result from the findings of this investigative report at this time. Each section of the report includes recommendations by the auditor’s board on how to remedy the problems that are detailed within, and response letters from the former and current mayor and city council were also included.

This is an ongoing story and more details will be reported on as they become available.