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A federal judge has selected an auditor to conduct what could be the most comprehensive picture of Los Angeles’ response to homelessness in years.David McCurley, a Texas-based managing director who leads the firm’s state and local government practice, said in Thursday’s hearing that Alvarez & Marsal will bring their expertise in government efficiency, health and human services, and forensic accounting to the audit.
Scott Marcus, an attorney for the city, said in Friday’s hearing that he was given additional information that made Horne LLP “less desirable to the court” and that he didn’t think CLA “was capable of performing the audit” they had in mind, according to court transcripts.Alvarez & Marsal is a consulting firm with about 9,000 employees and dozens of offices around the world, including in L.A.’s Westchester neighborhood.
The price range the firm provided was between $2.8 million and $4.2 million to complete the audit in 20 weeks, said Scott McKee, a managing director and accountant who works with the firm’s disputes and investigations team. Carter reiterated those directives during Monday’s hearing, saying he’s asked Alvarez & Marsal to visit the unhoused communities “almost immediately,” according to court transcripts.The L.A. City Council agreed to pay between $1.5 and $2.2 million for the audit on Friday, which is hundreds of thousands of dollars less than the minimum price Alvarez & Marsal had originally proposed.
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