#  Ron Galperin Releases Statement Regarding Staggering $42.6 million in "Lost and Found" Money at LADOT

     Details    David Graham-Caso   ![logo](https://www.citywatchla.com//templates/ja_teline_v/images/logo.png)         May 15 2013       [ARCHIVE](https://www.citywatchla.com/archive)   - [  Previous Article **In Race to Replace Garcetti, Can a Newcomer to CD 13 Understand Its Transportation Needs** ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=5070:in-race-to-replace-garcetti-can-a-newcomer-to-cd-13-understand-its-transportation-needs&catid=16)
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> ![](https://www.citywatchla.com/images/stories/May-2013/cw11039t.png)According to a report heard in today's Los Angeles City Council Budget and Finance Committee meeting, a staggering $42.6 million in grant funds has been "lost and found" by the City's Department of Transportation (LADOT).

 [The report](http://r20.rs6.net/tn.jsp?e=00192IkfOGU-dU_LkiLr7b2_GH7vjYtZodD-HCgINY2JTyQ-wWu3vKfsDCrP7VCmo9nh73yGQAD0SFdOZ_C4jUZTa9qBGTTjUgqzAnnlXCkaZFcFrgb802A7I-v8r1auuvSlmHDDMbqAz9yi7rUZ5M1sbP3LvX21QhFYfqC6bzZocNrZ9d9L525R8-IXiBbq0aQ8jTqxxS3NR_VUTKMMtVhJORqIOcJuGEMFYd1SBw0z9RCRXOIgV5K1GDHFPjb1Ize0jytnkNPBBYDpJ6lK_4PKCykkiY2LsrOR9v7hx3MEyaPz1xHo1Ga_buTvPlD4c83HYMegMu7AqkzeAEW8FzjDEdRqauh8QeM9-XsjyIoBcTIsH7YwtpPiQ==) shockingly details more than $42 million in grant money that LADOT failed to appropriately track and transfer to the City's general fund, resulting in cuts to other vital services. According to the report, "*From fiscal year 1995-1996 to the end of fiscal year 2010-2011, LADOT failed to reconcile indirect costs for the \[Transportation Grants\] fund each year... As a result, millions of dollars that should have been reimbursed to the general fund... did not occur.*"

The grant money is now being labeled "delayed grant payments" and considered as part of the revenue identified in the 2012-13 budget.

Ron Galperin, a candidate for Los Angeles City Controller, released the following statement regarding this $42 million in "lost and found" money:

"How do you lose track of $42 million?!?

"Los Angeles has a broken grants management system, a broken financial reporting system and a dire need for our next Controller to follow-though and correct these problems in order to protect the taxpayer's money. It is unconscionable for vital services to be cut while this huge amount of money is lost because of careless accounting and oversight.

"This is not the first time that the City's process for administering grants has been called into question. In 2007, City Controller Laura Chick released an [audit of the City's grant administration and management process](http://r20.rs6.net/tn.jsp?e=00192IkfOGU-dVoBH4X0nwcIx6zJWNLU3wewg0f4CsNcm-VJqSuzUkDM201Osgdg8YrjD7rIXrF_pnihzBWXDr_tAOVlU_EPKkIMmAiyu0GJ4pDyu66wmjfXRZW_focQf2-bOevI7OwEtYH2zB6ISlAzGkpWRQpUrDLMujBNnYaUJ9YTSUsJ0bYuA==) that uncovered problems and made many good recommendations for improving the system.

"The accounting errors identified in this recent report, however, seem to be an outcome of the same poorly-managed system highlighted by Controller Chick. This shows that the Controller's 2007 audit was not taken seriously by City leaders - especially the City Council's Audits and Governmental Efficiency Committee.

"My opponent in this race has had 12 years to address these issues as a Councilmember and he has ignored his responsibility to protect taxpayers from this kind of egregious mismanagement. We need new leadership in City Hall."

The runoff election for City Controller will be held on Tuesday, May 21.

*[(Ron Galperin is candidate for Los Angeles City Controller.)](http://www.ronforla.com)*

*-cw*

CityWatch

5-8-13

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