Audit 296272

Labor Standards Department of Housing and Urban Development, Community Development Block Grants/Entitlement Grants ALN 14.228 Fiscal year finding initially occurred: 2023 CONDITION: Payroll deduction authorization forms were not available for review with regard to eight contractor employees for the LCDBG Grant project. CRITERIA: Federal law, 29 CFR 3.5, states in part, that deductions are permitted when “…(2)(i) Voluntarily consented to by the employee in writing…” “Payroll deduction authorization forms must be utilized when “other deductions not required by law are made.” CAUSE: Contractor failed to submit the authorization forms to the City timely. EFFECT: Payroll deductions may be incurred without proper authorization from employees. RECOMMENDATION: The City must ensure that all “other deductions” withheld from payroll by contractor for an employee has the proper authorization currently and for any future LCDBG program projects.

Procurement of software and computer equipment Fiscal year finding initially occurred: 2023 CONDITION: The City of Crowley failed to adhere to the state bid law/requests for proposals when they purchased software and computer equipment for the police department totaling $319,890. CRITERIA: The City's procurement practices related to the acquisition of computers and software lack compliance with the statutory requirements specified in LSA-R.S. 38:2211 and LSA-R.S. 38:2237. The statutes mandate a structured procurement process, including a public notice, competitive bidding, to ensure transparency, fairness, and value for public funds in the procurement of goods and services. The City should submit requests for proposals and/or advertise for bids when purchasing software and computer equipment. CAUSE: The City of Crowley failed to appropriately apply procurement methods in accordance with applicable state laws. EFFECT: Failure to properly apply state procurement laws may cause the City to overpay and put the City of Crowley in violation of state statutes. CONTEXT: Two of nine transactions tested resulted in noncompliance with state procurement laws. RECOMMENDATION: Management should implement policies and procedures across all departments to ensure compliance with state procurement laws.

Labor Standards Department of Housing and Urban Development, Community Development Block Grants/Entitlement Grants ALN 14.228 Fiscal year finding initially occurred: 2023 CONDITION: Payroll deduction authorization forms were not available for review with regard to eight contractor employees for the LCDBG Grant project. CRITERIA: Federal law, 29 CFR 3.5, states in part, that deductions are permitted when “…(2)(i) Voluntarily consented to by the employee in writing…” “Payroll deduction authorization forms must be utilized when “other deductions not required by law are made.” CAUSE: Contractor failed to submit the authorization forms to the City timely. EFFECT: Payroll deductions may be incurred without proper authorization from employees. RECOMMENDATION: The City must ensure that all “other deductions” withheld from payroll by contractor for an employee has the proper authorization currently and for any future LCDBG program projects.

Procurement of software and computer equipment Fiscal year finding initially occurred: 2023 CONDITION: The City of Crowley failed to adhere to the state bid law/requests for proposals when they purchased software and computer equipment for the police department totaling $319,890. CRITERIA: The City's procurement practices related to the acquisition of computers and software lack compliance with the statutory requirements specified in LSA-R.S. 38:2211 and LSA-R.S. 38:2237. The statutes mandate a structured procurement process, including a public notice, competitive bidding, to ensure transparency, fairness, and value for public funds in the procurement of goods and services. The City should submit requests for proposals and/or advertise for bids when purchasing software and computer equipment. CAUSE: The City of Crowley failed to appropriately apply procurement methods in accordance with applicable state laws. EFFECT: Failure to properly apply state procurement laws may cause the City to overpay and put the City of Crowley in violation of state statutes. CONTEXT: Two of nine transactions tested resulted in noncompliance with state procurement laws. RECOMMENDATION: Management should implement policies and procedures across all departments to ensure compliance with state procurement laws.