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ISSUE: Audits are out … DWP Nonprofits Spent Freely with Little Oversight

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DWP trusts paid millions to vendors without competitive bids and let managers use trust-issued credit cards. 

Trusts have received more than $40 million from ratepayers. 

A controversial pair of nonprofit trusts, created by the Los Angeles Department of Water and Power and financed with more than $40 million from ratepayers, doled out millions to vendors without competitive bids and let managers use trust-issued credit cards to buy gas for their personal vehicles and travel without filing expense reports, according to a city audit released on Thursday.

The nonprofits, which were created in the early 2000s to promote safety and training at the massive city-owned utility, have also failed to provide any "real information on the outcomes or effectiveness" of their efforts, according to the audit by City Administrative Officer Miguel Santana. (Here’s the rest of the Times story.) 

● Here is Controller Ron Galperin’s audit.   

 

CityWatch

Vol 13 Issue 36

Pub: May 1, 2015

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