City of Los Angeles Controller Wendy Greuel has released an audit highly critical of the city’s contracting policies. Specifically, Greuel noted a lack of “essential controls and oversight” regarding the payments of $203 million to contractors.
Bryan Low, an Architectural Associate at the Port of LA who works on high-profile engineering projects, said: “I see this on design projects at the Harbor. Sometimes you hear, ‘There’s just not enough people to do this job’ or ‘the schedule is too compact.’ I understand that in some cases.
“But at any company, public or private, you have to balance your resources, your schedule and the cost. All too often the cost analysis is never done and we go straight for the consultant.”
Top findings released today by the City Controller:
- The City lacks adequate internal controls to ensure staff follow City contracting policies.
- The City cannot be assured that it is more cost-effective to contract for services than use City staff.
- Contracted programs may not be the best use of limited City funds.
- Contract monitoring procedures are not always sufficient to ensure contracted services meet the City’s expectations.
“With more than $200 million worth of contracts every year, the City must make sure the taxpayers are getting their money’s worth. The hundreds of employees that could be laid off this coming year deserve nothing less,” wrote Greuel.
Click here to read the full report (pdf) 