The audit report. Finally.
In The Daily News:
Councilwoman Oneita Graham hesitated to read the report aloud because of is length. Also citing hoarseness, she said the "last time" she read something, she "was accused of making accusations, when all I did was read."Copies of the report were to be made available to the general public on Thursday, September 7, 2006.
Graham did read the 10 questionable findings listed on Seal's cover page.
They are a Chamico cost-plus contract, Northshore Emergency Services contract, overtime pay, General Obligation Bond Debt Service Fund, City of Bogalusa employees' retirement system, emergency ordinances, Willis Avenue overlay, Industrial Park repairs, budget amendments and Central Purchasing.
Somebody identifying themselves as "Oneita" posted much of the report online at the Hard Copy Message Board on September 5, 2006. I don't know how long the archives there are saved, nor how long they will be viewable. Posts seem to "fall off" the bottom of the page.
In any event, I'm going to cut-and-paste some of the pertinent points from each page as it was posted on that board. I'm making no claim as to their accuracy, but I have the screen shots saved from Oneita's posts for backup, in case you wanna argue.
From R. Seal's (auditor) cover letter:
Management's Responses follow each finding and a letter from the Mayor is included. The above findings are generally instances of noncompliance with laws, regulations and the City Charter and probably will not affect my opinion on the financial statements at the conclusion of the audit.
There are two other points that I would like to clarify.
1. Because of the nature of the above findings, auditing standards required me to keep the Council President informed as the audit progressed, rather than wait until the audit was finished.
2. The provisions of the State Bid Law, the State Budget Law and the City Charter were never waived or suspended after Hurricane Katrina.
From Page 5:
Criteria - City Charter requires an ordinance to authorize any contract on behalf of the City. State law prohibits cost-plus contracts. State law requires that public works contracts in excess of $100,000 be advertised and let by contract to the lowest responsible bidder.
Condition - on January 5, 2005, the Mayor entered into a contract with Chamico, Inc. to "perform any and all service work requested of them by authorized city officials for work that is within the scope of approved licensing of Chamico, Inc." The contract provides that Chamico, Inc. would be paid "by man-hours and equipment-hours actually worked at the current published rate of Chamico, Inc., plus the necessary materials for the requested work, plus 15% for overhead and profit." The contract also provides that it will remain in effect until written cancellation by either party. Chamico invoiced the City for over $440,000 from January through December 31, 2005, and another $165,000 through February 22, 2006, mainly for repair of public buildings damaged by Hurricane Katrina. All the work was done in accordance with the terms and conditions of the contract dated January 5, 2005.
Effect - 1. The contract was vague as to the nature of the work to be performed.
2. The City could not locate any published rates for Chamico's man-hours or equipment-hours.
3. there was no ordinance passed by the City Council to authorize the contract.
4. It is a cost-plus contact which is prohibited by state law.
5. No bid was obtained as required by state law.
Auditor's Recommendation - The City should use emergency ordinances and adopt specific, written internal controls to prevent this from happening in the future.
This was quoted as part of "Management's response":
Management's Response - Much confusion was left in the aftermath of Hurricane Ktrina. In her wake City personnel immediately began damage assessment and cleanup with virtually no means of communication otehr than hand held radios. there was death, injury and an immense amount of property damage throughout the City.
In an attempt to recover from the devastation, the Public Works Department contacted 3 local construction contractors by driving and walking to their home and/or office. Two contractors were themselves devastated by the storm and unable to assist with recovery. The Public Works Director selected the only one available (Chamico) to assist with projects necessary for recovery. No contract was executed for Chamico as this took place in the first circumstances resulting from the chaos the hurricane left in her wake.
You really need to get over to that board and read the whole thing, or get a copy from the City. Fascinating stuff. You should also search The Daily News archives for all articles about Katrina to get a timeline of events.
Reading the details about this fiasco raises my blood pressure. How 'bout you?
3 comments:
Reading the details about this fiasco raises my blood pressure also, but the lack of interest and concern by the majority of the people of Bogalusa on the problems we're facing makes my head want to explode!
The people who are supporting the mayor, are not only harming the future of the average Bogalusan, but they are also throwing a life of expectations away for their own children and grandchildren!
If by chance anyone of these supporters are reading this board, do not receive this message lightly, for you only have to look closely at the record of the retirement funds available. These funds go to our men and women who work and make it possible for this town to function.
The average retirement funds available in most small towns and cities, run in the percentile betwoeen 75% and 95%.
As of June,2005; Bogalusa's funds were down to 45%. That was two months before "Katrina" came thru and over a full year ago!
Where do you think the level of the funds are "NOW"?
It could very well be bordering bankruptcy!
Don't let City Hall try to use "Katrina" as the excuse for, cost-plus contracts, overtime pay for city officals, unsigned & undated contracts, or near bankrupt funds to pay our retiring city workers.
FEMA has given millions to Bogalusa, and everyone should want to know where is the money?
Where did all this extra money for retirement funds go?
Where is all the progress from this money for this town?
There is to much money un-accounted for with nothing, "I MEAN NOTHING", to show for where it has been spent!
So if I start to tally a list of money that has not been accounted for, including the money that the people's taxes have paid out for services, the list would go like this:
1). $500,000.00 dollars cash from CEO-Temple given to the city in Aug. 2005. GONE?
2). 55% of the millions of dollars of the retiring city workers funds were down in June 2005. Instead of it being 55% down it should have been 95% up or more. What is the level now, one year later in Sept. 2006? GONE?
3). The millions of dollars FEMA has paid out to the city in 2005. GONE?
4). The millions of dollars FEMA has paid out to the city in 2006. GONE?
5). Over $800,000.00 dollars or more of the city's money paid to Chamico for repair work, which was the illegal cost-plus, un-bidded contract. The town still looks like Hell, and it still needs $800,000.00 dollars worth of repairs. GONE!
6). The over time pay that the Mayor and his city officials voted for among themselves at their private meeting before the storm. The amount was at the tune of $60,000.00 dollars! The citizens of Bogalusa elected these officals to look out for the welfare of the city and instead the officials main concern was making a profit in overtime pay of $60,000.00 dollars! GONE!
We still do not have a financial statement since Nov. of 2005.
How can a city justify operating for almost a year without having a clue to how much money is available to run this city?
Why hasn't the mayor handed over to the city auditor, the records of the financials of the city?
Is the city broke?
Just get into your cars and drive around Bogalusa and take a GOOD LOOK AT THE TOWN!
It looks horrible and I want to know visually, WHERE HAS ALL THE MONEY BEEN SPENT ON THE IMPROVEMENTS OF THIS CITY?
So if I start to tally a list of money that has not been accounted for, including the money that the people's taxes have paid out for services, the list would go like this:
1). $500,000.00 dollars cash from CEO-Temple given to the city in Aug. 2005. GONE?
2). %55 of the millions of dollars of the retiring city workers funds were down in June 2005. Instead of it being 55% down it should have been 95% up or more. What is the level now, one year later in Sept. 2006? GONE?
3). The millions of dollars FEMA has paid out to the city in 2005. GONE?
4). The millions of dollars FEMA has paid out to the city in 2006. GONE?
5). Over $800,000.00 dollars or more of the city's money paid to Chamico for repair work, which was the illegal cost-plus, "un-bidded", contract. (The town still looks like Hell, and it still need $800,000.00 dollars worth of repairs). GONE?
6). The overtime pay that the Mayor and his city officials voted for, among themselves at their private meeting before the storm. The amount was at the tune of $60,000.00 dollars! The citizens of Bogalusa elected these officials to look out for the welfare of the city, but instead, the city official's main concern was how they oculd make a profit from an upcoming disaster of the city. $60,000 dollars GONE!
We still do not have a financial statement since Nov. of 2005.
How can a city justify operating for almost a year without having a clue to how much money is i available in the bank, to run this city?
Why hasn't the mayor handed over to the city auditor, the records of the financials of the city?
Is this city governed by a city council and a mayor, or is it just the mayor who is in charge and the city council is just window dressing?
Is the city broke?
Get into your cars and drive around this town and take a good look at it!
It looks horrible and I would like to know, where has the money been spent on this town if you cannot visually see the improvements?
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