Audit: EBR May Have Violated State Law, Constitution in Sale of Properties, BRAVE Contracts
Investigative auditors who looked at East Baton Rouge Parish’s sale of surplus real estate between January 2014 and February 2017 found that two of the properties may have sold for less than their fair market value and that officials failed to set a minimum price or to publish notices of their proposed sale as required by law. Auditors also noted that the City-Parish had no formal written policies or procedures in place governing the sale of surplus property.
In addition, auditors examined some of the contracts entered into by the Baton Rouge Area Violence Elimination (BRAVE) program and found two contracts lacked sufficient detail to determine whether the money paid was reasonable for the services received.
Records showed that the City-Parish sold four pieces of immovable property between January 2014 and February 2017 that were declared surplus. Those properties were:
· A 0.506-acre tract on Bluebonnet Boulevard (Property No. 1);
· A 0.289-acre tract along Bluebonnet Boulevard (Property No. 2);
· The East Baton Rouge Parish Clerk of Court’s branch office (building and parking lot) on Coursey Boulevard (Property No. 3);
· A 1.22-acre tract at the southwest corner of Bluebonnet Boulevard and Jefferson Highway (Property No. 4).
Auditors found that the sales of properties 2 and 3 appeared to comply with applicable ordinances and state law. However, auditors said, because City-Parish officials failed to properly advertise the ordinance or to set a minimum price for properties 1 and 4, the sale of these properties did not meet the requirements of state law. Further, the City-Parish may have sold both properties below fair market value, which is prohibited by the state Constitution.
Auditors also questioned two BRAVE contracts for transportation and counseling. The supporting documentation for the payments on the two contracts did not contain enough detail for City-Parish officials to ensure the vendors were paid commensurate with the services they performed, meaning vendors may have been paid more than they should have. As a result, City-Parish officials may have violated the state Constitution.
For more information contact:
Legislative Auditor
225.339.3800