OIG follow-up report shows New Orleans made strides in fuel controls

OIG follow-up report shows New Orleans made strides in fuel controls

NEW ORLEANS (WVUE) - A new report from the New Orleans inspector general finds the City of New Orleans has made strides in improving control over its fuel purchases.

New Orleans Inspector General Ed Quatrevaux said the city implemented many of the recommendations from the findings in the 2013 report.

The 2013 report questioned whether the city was getting the fuel it paid for and whether invoices were properly paid.

In a review of last year's fuel handlings, the OIG's office says it's seen improvements expect when it comes to non-automated fueling facilities.

"We are pleased to see that the city implemented most of our recommendations to improve oversight of fuel purchases," Quatrevaux said in a prepared statement. "We continue to recommend that the city automate all its fuel facilities or at the very least, establish a policy requiring all employees to measure fuel deliveries according to best practices."

The city spent approximately $3.2 million on fuel in 2015. Evaluators found significant improvements to fuel receiving controls by implementing most of the OIG's 2013 recommendations.

The city developed a process to monitor and verify fuel deliveries to facilities with electronic monitoring devices before issuing payments to vendors. Regular inventory controls were also put in place.

The invoice review process was also improved to identify billing errors and independently verify pricing information.

There is one area found in the report that still holds the potential for waste and abuse. The City did not improve ineffective fuel receiving controls at non-automated fueling facilities.

The City rejected the OIG's 2013 recommendation to install electronic monitoring devices, citing cost estimates of $80,000 to $100,000.

In its follow-up report, the OIG identified lower-cost options ranging from $14,000 to $16,500.

Read the full report here:

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