The latest inspector general report revealed concerns about financial spending from the mayor's now-shuttered nonprofit organization, Forward Together New Orleans. Following serious allegations of ethical misconduct, the inspector general subpoenaed the organization's financial status and dialogue with city leaders. What the IG found was that there was a conflict of interest in how funds were directed to nonprofit organizations that were supposed to be independent from the city. This private nonprofit organization, called Forward Together New Orleans, was founded in 2019 by Mayor La Toya Cantrell and her political campaign director. FTNO raised more than $3 million from private donors in 2020 and 2021 to pay for relief programs during the pandemic. Cantrall signed two contracts in April 2022, providing more than $1 million in city funds to FTNO. This move at the time avoided City Council oversight. Former executive director Sean Randolph, who was running FTNO at the time, alleged that the funds were misused. He also expressed concern that city employees were involved with the organization's funds, which should not be tolerated. Shortly after raising his concerns, he was fired. Then, on April 27, 2022, the City Council asked the Inspector General to investigate FTNO. On September 8, 2022, FTNO received a subpoena for financial records. In the meantime, WDSU requested the following: Mayor Cantrell responded to community concerns about the nonprofit organization. Kathy Schirm: “How would you respond to some people who say they think there's something going on that needs to be looked at financially?'' Mayor: “Together we move New Orleans forward.'' ” fills a gap in this community that no one else has. So in terms of what people say, I can't answer that. That's what I know. What I do know is that Forward Together in New Orleans has raised millions of dollars and used that money to meet with people in our community. ” Kathy: “So you don't think the money was misused?” Mayor: “I know.” That the money wasn't misused. “Thank you. After being fired, Mr. Randolph attempted to take over the organization. He was sued by the board and ordered by a judge to cease operations. Shortly after, on October 20, 2022 On February 14, 2023, the nonprofit organization returned $1 million to New Orleans. City watchdogs say the timing is concerning. “He had just started this investigation when the nonprofit came back to the inspector general's office and said, wait, we're going to dissolve the organization and give the money back to the city. ” said Rafiel Goineche of the Metropolitan Crime Commission. That's a red flag. “Goyneche says the new inspector general's report confirms that some of the allegations were true.” They're talking about conflicts of interest, mayors against nonprofits. and improper influence by city officials, and the fact that the nonprofit is ultimately a nonprofit. We received over $1 million in city funds,” Goyneche said. Emails from the mayor discovered through an inspector general subpoena were also part of the investigation. On February 8, 2021, several Mardi Gras Indian chiefs agreed to support the mayor at a Mardi Gras press conference. Mardi Gras. In an email from Mayor Cantrell to a former FTNO executive director in 2021, she asked the director, “Are there any FTNO checks that I can cut for 500 aid each? No pressure, just let me know. The director replied to the mayor, “Now that the FTNO board has formally approved Big Chief's proposal, I will deliver the check to Justin at Gallia Hall.” The mayor responded, “Oh my god!” ! Thank you so much Trent! ! ! ! WDSU's investigation found that the total funds requested were $4,000. Goyneche said the first issue was the proposal to misclassify funds, “which has nothing to do with housing costs.” “The mayor can email the executive director of a nonprofit organization that is supposed to be completely independent of the city of New Orleans and ask for money,” Goyneche said. “She got it within 24 hours and delivered it to the press conference.” The IG also found that FTNO received donations from city contractors, creating a conflict of interest for city officials who serve on FTNO's board. This indicates that there is a possibility that City officials directed the spending of funds donated to FTNO, and the report states that “these funds also included contributions from city contractors, presenting a potential conflict of interest.'' “After the OIG began its investigation, the FTNO Board made its intentions clear.'' Disband FTNO,” Inspector General Ed Michel wrote. “As part of the dissolution process, FTNO returned a cashier's check to the City in the amount of $1,063,410.40.Non-profit organizations and charities receiving City funds may, through authority granted by the City for the purposes outlined below, We must remember that we are acting as custodians of public funds. The City of CEA will ensure that these funds are used in accordance with the terms of the CEA and will support the efforts undertaken by non-profit or charitable organizations. Appropriate supporting documentation must be maintained to demonstrate effectiveness. Potential conflicts of interest are disclosed prior to entering into CEAs with nonprofits and other charitable organizations.'' OIG Recommended :• The City must maintain sufficient documentation to ensure that City funds provided to nonprofit organizations and other charitable organizations are properly characterized. • The city should add a section to its current financial disclosure form that requires city employees to disclose services provided to non-city employees. Any for-profit or other charitable organization that receives funds from the City.
The latest inspector general report revealed concerns about spending from the mayor's now-shuttered nonprofit organization, Forward Together New Orleans.
Following serious allegations of ethical misconduct, the IG subpoenaed the organization's financials and conversations with city leaders.
What the IG found was that there was a conflict of interest in how funds were directed to nonprofit organizations that were supposed to be independent from the city.
The private nonprofit organization, called Forward Together New Orleans, was founded in 2019 by Mayor LaToya Cantrell and her political campaign director.
FTNO raised more than $3 million from private donors in 2020 and 2021 to pay for relief programs during the pandemic.
Cantrall signed two contracts in April 2022 that provided FTNO with more than $1 million in city funding.
The move avoided City Council oversight at the time.
Former executive director Sean Randolph, who was running FTNO at the time, claimed the funds were misused. He also expressed concern that city employees were involved with the organization's funds, which should not be tolerated. Shortly after raising his concerns, he was fired.
Then, on April 27, 2022, the Council asked the Inspector General to investigate FTNO.
On September 8, 2022, FTNO received a subpoena for financial records.
During that period, WDSU asked Mayor Cantrell about his response to community concerns about the nonprofit organization.
Kathy Schirm: “How do you respond to some people who say they think there is something going on that needs to be looked at economically?
Mayor: “Forward Together New Orleans fills a gap in this community that no one else has. So as far as people's opinions, I can't answer that. That's what I know. That's what I know: Forward Together New Orleans.'' Orleans raised millions of dollars and spent that money meeting people in our community. ”
Kathy: “So you don't think the money was misused?”
Mayor: “I am aware that the money was not misused. Thank you.”
After being fired, Randolph attempted to take over the organization.
He was sued by the board and ordered by a judge to cease operations.
Shortly thereafter, on October 20, 2022, FTNO announced plans to permanently close.
And on February 14, 2023, the nonprofit returned $1 million to New Orleans.
City watchdogs say the timing is concerning.
“He was just beginning this investigation when the nonprofit contacted the Office of the Inspector General and said, wait, we're going to dissolve the organization and give the money back to the city.” said Rafiel Goineche of the National Capital Region. Crime Commission. “That's abnormal. That's a red flag.”
Goyneche said a new inspector general report confirmed some of the allegations were true.
“They're talking about conflicts of interest, improper influence by the mayor and city officials over the nonprofit, and the fact that the nonprofit ended up receiving more than $1 million in city funds,” Goyneche said. said.
Emails from the mayor discovered through the inspector general's subpoena were also part of the investigation.
On February 8, 2021, several Mardi Gras Indian chiefs agreed to stand by the mayor at a Mardi Gras press conference.
In an email from Mayor Cantrell to a former FTNO executive director in 2021, she asked the director, “Are there any FTNO checks that I can reduce for 500 each in support? No pressure, please tell me. “It could be housing costs.”
The director responded to the mayor, saying, “Now that the FTNO board has formally approved Big Chief's proposal, we will be presenting the check to Justin in Gallia Hall.”
The mayor responded, “Oh, thank you so much, Mr. Trent!!! You're the one!”
WDSU's investigation determined the total amount of money requested was $4,000.
Goyneche said the first issue was the proposal to misclassify funds, which “has nothing to do with housing costs.”
In addition to the money, Goyneche says the concern is the conversation itself.
“The mayor can email the executive director of a nonprofit organization that is supposed to be completely independent of the city of New Orleans and ask for money,” Goyneche said. “She received it within 24 hours and delivered it to the press conference.”
The IG also revealed that FTNO received donations from city contractors, which it said presented a potential conflict of interest for city employees who serve on FTNO's board. City staff directed the disbursement of funds donated to FTNO. “This also proved to be a potential conflict of interest, as these funds included contributions from city contractors,” the report states.
“After the OIG began its investigation, the FTNO Board of Directors announced its intent to dissolve FTNO,” Inspector General Ed Michel wrote. “As part of the dissolution process, FTNO returned a cashier's check to the City in the amount of $1,063,410.40.Non-profit organizations and charities receiving City funds may, through authority granted by the City for the purposes outlined below, We must remember that we are acting as custodians of public funds. The City of CEA will ensure that these funds are used in accordance with the terms of the CEA and will support the efforts undertaken by non-profit or charitable organizations. Appropriate supporting documentation must be maintained to demonstrate effectiveness. Potential conflicts of interest are disclosed prior to entering into a CEA with a nonprofit or other charitable organization.”
OIG recommended:
• The City will ensure that City funds provided to nonprofit and other charitable organizations are appropriately characterized, expended, and utilized in a manner consistent with the terms of the agreement outlined in the Cooperative Engagement Agreement (CEA). Adequate documentation must be maintained to ensure that the
• The city should add a section to its current financial disclosure forms requiring city employees to disclose services provided to nonprofits or other charitable organizations that receive funding from the city.
