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Saturday, February 27, 2021

Who audits the auditors?

This is more from that David Hammer series on building inspections we mentioned the other day. All of this has gotten more attention after the Hard Rock collapse but it is important to remember that the trouble at New Orleans Safety and Permits began before that. There were have been competing investigations run by the city, by the feds, and by the Inpector General underway for well over a year. 

Hammer's report focuses on an internal audit of Safety and Permits run by City Hall. Not sure how it relates to the multiple other investigations, exactly, but according to Hammer's source, there are problems. 

Now, the results of the full audit, obtained by WWL-TV last month through a public records request, suggest that the audit itself had several issues.

The sample of 720 inspection files reviewed in the audit showed around 20% noncompliance, as Montaño said. But the audit turned out to be composed of what one auditor who spoke to WWL-TV called a “haphazard” mixture of inspections conducted by in-house city inspectors — with GPS data to track whether they showed up at construction sites — and inspections conducted by private, third-party inspectors with no GPS data to track their whereabouts.

According to the auditor, who spoke on condition of anonymity, the audit also didn't employ a regimented process to review the inspection files. Each auditor did it their own way, the auditor said, making it much harder to determine if the city had indeed made the type of progress Montaño touted.

“It shows an incohesive, improper audit,” the auditor said. “It was not a proper, across-the-board, cohesive methodology to determine which inspections were accurate and which ones need (additional) review.”
The other bit of context here is that this was taking place at the same time the city was reorganizing the whole Safety and Permits department into a new entity run by a short term rental executive. At that time the declared purpose of the new agency was to "shift the paradigm"of Safety regulation toward helping businesses and landlords "get creative" with the rules.
“Instead of someone saying no immediately, it’s someone saying, ‘Let’s find a way to accomplish what you’re trying to accomplish and still stay within our rules and guidelines, not skirt the system, but let’s get creative on how we can help you succeed. Because you succeeding is us succeeding.’ “
Hammer's story concludes by noting the new agency will "focus continually on auditing the inspectors' work." Very reassuring.

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