At a Legislative Audit Council hearing on Sept. 8, auditors and the city’s fiscal administrator described steps taken to stabilize the City of Bogalusa’s finances; the mayor, residents and other speakers accused the fiscal administrator of overreach and procedural missteps that they say undermine the mayor’s authority and public trust.

What auditors reported
Becky Hammond, a partner with Carr, Riggs & Ingram, presented a near‑final draft of Bogalusa’s 2022 audit and said the firm will finish internal quality reviews and an exit conference before issuing the final report, expected within about two weeks. Hammond said the audit will include multiple findings, including repeat findings on capital‑asset records and separation of accounting for the water system required by bond covenants. One audit finding cited insufficient pledged collateral for a bank account with about $1,550,000 that had not been collateralized above FDIC insurance; the bank subsequently failed and the account was protected and transferred, Hammond said.

Fiscal administrator’s accounting summary
Bob Nielsen, the court‑appointed fiscal administrator, told the council he has reduced open payables from about $1,100,000 on his appointment to roughly $263,000 as of Aug. 31, 2025 (a reduction the fiscal administrator described as more than 76 percent). He reported completing 965 bank reconciliations, said restricted cash balances fluctuated (examples cited: $772,000 on Feb. 28, 2025; $68,729 in July; $400,187 in August), and described a preliminary bookkeeping picture that shows a $1.7 million surplus for 2022, a $3.4 million preliminary deficit for 2024 and an approximate $832,000 projected surplus for 2025. Nielsen said operations included difficult decisions on staffing and payroll to bring operating expenses into line with revenue.

Mayor and public response
Mayor Tyrone Truong strongly disputed the fiscal administrator’s characterization of his actions and alleged retaliation and loss of access. In his testimony Mayor Truong said the past eight months “have been ones filled with insinuations, negative press and dare I say outright collusion,” and he provided documents that he said show the fiscal administrator had made inaccurate public claims. The mayor objected to hires and contracting practices he said created apparent conflicts — including the rehiring of a former public works manager, Don Jones, whom the mayor said had retired in 2022 and had been engaged thereafter in contract work that may run afoul of a two‑year restriction in state ethics law. The mayor also said his office had been moved and that he could not reliably access city systems from his designated space, which he said impeded his ability to carry out advisory duties under the court order.

Public comment and community concerns
Scores of Bogalusa residents and local business leaders addressed the council during public comment. Testimony included:
- Families and guardians of people served by ICF/HCBS providers who described gaps in seizure response and communication with group homes (testimony also heard earlier in the LDH portion of the hearing).
- Contractors and an architect who said projects and invoices have gone unpaid and asked for timely payment so local vendors and subcontractors are not financially harmed.
- Multiple longtime residents who said they support the mayor and accused the fiscal administrator of disrespectful behavior toward elected officials and the public, and of creating a hostile public atmosphere.

Points of dispute
- Access and communications: The mayor and several speakers said the mayor’s office was blocked from full access to city servers and phone routing; Nielsen said office arrangements were made to restore functional public works space and denied the mayor was completely locked out. The transcript shows conflicting descriptions of whether Internet or read access to city systems was available from the mayor’s office; council members requested clarification.
- Appointments and conflicts: Mayor Truong alleged that some hires and contracts — in particular, a contracted and later employed public works director — raised conflict‑of‑interest concerns and possible violations of state law that restrict contracting with former employees for two years. Nielsen acknowledged the complexity of rehiring former employees and said he had sought to address immediate operational needs.
- Public records and reporting: Mayor Truong said he had trouble obtaining public records that support some of the fiscal administrator’s claims and that he had submitted public records requests; he alleged delays in responses.

Auditor’s and council perspective
Hammond told the council the auditors found segregation of duties and documentation weaknesses typical of smaller governments and that they would include findings on compliance issues and on internal control documentation. Council members pressed Nielsen for documentary support for his summary numbers and told city officials to ensure the 2022 audit was finalized and that the administration provide written responses to identified findings.

Discussion vs. decisions
- Discussion: Extensive questioning by legislators and residents about bank collateral, staff changes, whether the city had been left with a surplus or deficit, and the accuracy of public statements by the fiscal administrator.
- Direction: Auditors will finalize the 2022 audit within weeks; the fiscal administrator and city staff were directed to provide supporting documents, and the mayor indicated he would pursue legal avenues to challenge the fiscal administrator’s actions.
- Formal action: The council did not remove the fiscal administrator (that authority rests with the court that appointed him), and no vote to change the appointment was recorded at the hearing.

Clarifying details extracted from testimony
- Audits behind and status: City of Bogalusa had three audits behind before 2022 draft was near completion; Carr, Riggs & Ingram expects to issue the 2022 audit report within two weeks of the Sept. 8 hearing.
- Collateral and bank failure: Auditors found one account with $1,550,000 not collateralized above FDIC limits at the time of the audit; that bank later failed and the funds were reported protected and moved to another bank with collateral in excess of required amounts.
- Payables and cash: Nielsen reported open payables of roughly $1,100,000 on appointment (Feb. 28, 2025) and reduction to $263,000 by Aug. 31, 2025. Restricted cash examples given: $772,000 (Feb. 28), $68,729 (July), $400,187 (August). Completed 965 bank reconciliations reported.
- Audit findings preview: Repeat findings on capital assets records and on water system accounting separation; findings for insufficient pledged collateral; noncompliance with Local Government Budget Act, and issues in ARPA (Coronavirus State and Local Fiscal Recovery Funds) documentation and procurement controls were noted.

Proper names and organizations appearing in testimony
City of Bogalusa; Carr, Riggs & Ingram (audit firm); Bob Nielsen (fiscal administrator); Becky Hammond (audit partner); Mayor Tyrone Truong; Don Jones (public works / treatment plant manager); RMI / LMA Risk Management (insurance affiliate referenced); Evolve IT (IT contractor referenced); District Attorney’s office (referenced by a vendor).

Searchable tags: ["Bogalusa","fiscal administrator","audit","bank collateral","payables","sewer","public records","conflict of interest","Carr Riggs & Ingram"]

Provenance:
- topicintro: transcript segment where the Bogalusa audit status was introduced (excerpt: "Next up is the city of Bogalusa and first we want to present a status of the city of Bogalusa's audit report for year ending 12/31/22. I believe Miss Becky Hammonds..." )
- topfinish: transcript segment at end of public comment and closing remarks (excerpt: "That is all that have requested a white card..." )