Neighborhood Council Budget Advocates White Paper 2 - 2012
description
Transcript of Neighborhood Council Budget Advocates White Paper 2 - 2012
CHARTS AND TABLES of BASIC BUDGET DATA and
SCORE CARD of RECENT CONTROLLER's AUDITS prepared by: Daniel Wiseman
AGING $3,792,602
ANIMAL SERVICES $19,919,848
BUILDING & SAFETY$68,943,603
CITY ADMINISTRATION OFFICE (C.A.O.)$11,580,492
CITY ATTORNEY$94,950,894
CITY CLERK $8,603,838
COMMUNITY DEVELOPMENT$26,619,693
CONTROLLER $13,791,344
CONVENTION CENTER$24,264,518
COUNCIL (15 MEMBERS)$18,881,782
CULTURAL AFFAIRS $7,421,341
DISABILITY $1,608,668
El Pueblo de Los Angeles $1,517,194
EMERGENCY MANAGEMENT$1,600,598
EMPLOYEE RELATIONS BOARD $421,616
ETHICS COMMISSION $2,031,383
FINANCE & TREASURER$37,644,214
FIRE$472,597,193
GENERAL SERVICES*$228,012,024
HOUSING$52,146,171
INFORMATION TECH. AGENCY*$78,379,548
MAYOR $22,752,477
D.O.N.E.$1,832,164
PERSONNEL*$41,267,436
PLANNING $25,393,267
POLICE$1,167,771,840
PW - Board of Public Works$15,212,179
PW - CONTRACTS ADMINISTRATION$28,486,926
PW - ENGINEERING Bureau$71,567,612
PW - SANITATION Bureau $221,352,636
PW - STREET LIGHTING Bureau$23,908,283
PW - STREET SERVICES Bureau$146,019,376
TRANSPORTATION $127,917,673
ZOO $18,283,477
LIBRARY FUND $95,648,178
RECREATION & PARKS FUND $179,586,089
FY2011-2012 ALLOCATIONS of the $ 4.3 billion L.A. City GENERAL FUND for the 36 BUDGETARY DEPTs and two PENSION PLANS
(Departments marked with a ' * ' star serve and are reimbursed by other Departments.)
DEPARTMENTAL BUDGETS - EXPENSES or ALLOCATIONS - FY2011-2012 Updated: Updated:MARCH 27, 2012
"BUDGET LINE ITEMS" for the XX???? 35 MAYOR's LAST YEAR PROPOSED &MAYOR's PROPOSED &MAYOR's PROPOSED &SALARIESnon-PROPRIETARY CITY DEPARTMENTSLAST YEAR's BUDGET YEAR-to-YEARCITY COUNCIL APPROVEDCITY COUNCIL APPROVEDas a PER CENT of POSITIONSand the "SPECIAL FUND(s)" ESTIMATE Difference TOTAL BUDGET basic SALARIES ALLOCATED as of
FY2010-2011 FY2011-12 - (05/25/2011)FY2011-12 - (05/25/2011) FY11-12 - (05/25/2011) BUDGET July 1, 2011
AGING $3,579,000 6.0% $3,792,602 $3,590,367 94.8% 38ANIMAL SERVICES $20,364,000 -2.2% $19,919,848 $17,780,478 89.7% 337BUILDING & SAFETY $69,210,000 -0.4% $68,943,603 $62,352,393 90.4% 725CITY ADMINISTRATION OFFICE (C.A.O.) $11,173,000 3.6% $11,580,492 $10,029,564 86.6% 110CITY ATTORNEY $112,167,000 -15.3% $94,950,894 $85,971,185 90.5% 776CITY CLERK $24,296,000 -64.6% $8,603,838 $7,546,034 87.7% 99COMMUNITY DEVELOPMENT $29,004,000 -8.2% $26,619,693 $24,063,117 90.4% 197CONTROLLER $16,481,000 -16.3% $13,791,344 $11,978,372 86.9% 188CONVENTION CENTER $22,597,000 7.4% $24,264,518 $13,460,002 55.5% 133COUNCIL (15 MEMBERS) $20,871,000 -9.5% $18,881,782 $17,645,260 93.5% 108CULTURAL AFFAIRS $8,834,000 -16.0% $7,421,341 $3,616,286 48.7% 40DISABILITY $1,525,000 5.5% $1,608,668 $1,177,962 73.2% 10El Pueblo de Los Angeles $1,610,000 -5.8% $1,517,194 $1,085,737 71.6% 10EMERGENCY MANAGEMENT $2,348,000 -31.8% $1,600,598 $1,499,238 93.7% 14EMPLOYEE RELATIONS BOARD $373,000 13.0% $421,616 $278,025 65.9% 3ETHICS COMMISSION $2,092,000 -2.9% $2,031,383 $1,684,686 82.9% 19FINANCE & TREASURER $25,601,000 47.0% $37,644,214 $25,559,600 67.9% 367FIRE $508,915,000 -7.1% $472,597,193 $367,348,587 77.7% 3,537GENERAL SERVICES* $270,524,000 -15.7% $228,012,024 $106,703,770 46.8% 1,506HOUSING $53,094,000 -1.8% $52,146,171 $45,009,013 86.3% 196INFORMATION TECH. AGENCY* $87,981,000 -10.9% $78,379,548 $42,104,020 53.7% 480MAYOR $31,160,000 -27.0% $22,752,477 $6,879,723 30.2% 94D.O.N.E. $1,610,000 13.8% $1,832,164 $1,513,415 82.6% 17PERSONNEL* $40,656,000 1.5% $41,267,436 $30,946,854 75.0% 388PLANNING $23,236,000 9.3% $25,393,267 $21,652,170 85.3% 240POLICE $1,201,222,000 -2.8% $1,167,771,840 $1,091,935,400 93.5% 13,677PW - Board of Public Works $17,628,000 -13.7% $15,212,179 $6,956,682 45.7% 95PW - CONTRACTS ADMINISTRATION $30,828,000 -7.6% $28,486,926 $25,463,822 89.4% 230PW - ENGINEERING Bureau $67,217,000 6.5% $71,567,612 $64,330,926 89.9% 701PW - SANITATION Bureau $200,301,000 10.5% $221,352,636 $202,655,202 91.6% 2,739PW - STREET LIGHTING Bureau $22,686,000 5.4% $23,908,283 $18,148,456 75.9% 214PW - STREET SERVICES Bureau $132,441,000 10.3% $146,019,376 $59,687,507 40.9% 762TRANSPORTATION $131,981,000 -3.1% $127,917,673 $97,189,888 76.0% 1,341ZOO $17,481,000 4.6% $18,283,477 $14,807,065 81.0% 228LIBRARY FUND $75,902,000 26.0% $95,648,178 $54,489,310 57.0% 828RECREATION & PARKS FUND $179,192,000 0.2% $179,586,089 $111,222,706 61.9% 1,524L.A. CITY EMPLOYEES' RETIREMENT SYSTEM (LACERS)$16,662,000 7.6% $17,936,000 $10,659,000 59.4%FIRE & POLICE PENSION SYSTEM (F&FPS) $15,681,000 8.0% $16,932,535 $9,725,717
"BUDGETARY" DEPTS' ALLOCATIONS $3,498,523,000 -2.9% $3,396,596,712 78.9% 31,971
0 0 0
80000
80000
160000
210000
290000
340000
400000
450000
450000
450000400000
400000
340000
340000
340000
0
242966
258985206306
16137
-1129
-47947
-148799-197707
-273218-315300
-381387
-312505-420957
-53865
-168521
19262
-39397
-4686
0
START
14-Jul-1
0
28-Jul-1
0
11-Aug-1
0
25-Aug-1
0
08-Sep-1
0
22-Sep-1
0
06-Oct-1
0
20-Oct-1
0
03-Nov-10
17-Nov-10
01-D
ec-10
15-D
ec-10
29-D
ec-10
12-Jan-11
26-Jan-11
09-Feb-1
1
23-Feb-1
1
09-Mar-1
1
23-Mar-1
1
06-Apr-1
1
20-Apr-1
1
04-May-11
18-May-11
01-Jun-1
1
15-Jun-1
1
30-Jun-1
1END
-400
-300
-200
-100
0
100
200
300
400
500
600
DO
LLA
RS
(mill
ions
)
PROPERTY TAX, VEHICLE LICENSE FEE (VLF) & SALES TAX
Replacement
LICENSES, PERMITS, FEES & FINES
UTILITIES USER's TAXES (electric, gas & telephone)
SALES TAX
BUSINESS TAX
TRANSFER from HARBOR & AIRPORTS
DWP POWER TRANSFER
TRANSIENT OCCUPANCY TAX
DOCUMENTARY TRANSFER TAX
PARKING USER's TAX
INTEREST INCOME
PARKING FINES
ALLOCATIONS from OTHER FUNDS (not TRAN)
Borrowings from RESERVE FUND
ALL OTHER REVENUES
EMPLOYEE's BASE SALARIES
DENTAL & HEALTH INSURANCE SUBSIDY
SERVICES, EQUIPMENT & SUPPLIES & FY2010, too
LEASE PAYMENTS
INTER-FUND BILLINGS & TRANSFERS
...and...ALLOCATIONS to OTHER FUNDS
INCREASES / DECREASES. in BALANCE SHEET ACCOUNTS
(sic)
LACERS & FIRE-POLICE PENSION CONTRIBUTIONS
RUNNING CASH BALANCE "before" using TRAN FUNDS
RUNNING CASH BALANCE "after" using TRAN FUNDS
CUMULATIVE USE of TRAN to the GENL FUND
FY2011-2012 CASH FLOW data from the CONTROLLER who pays our City's Expenses every 2 weeks.REVENUES (bars above the ZERO line) are inadequate until December when we start receiving Property Taxes.
BLUE LINES are CASH BALANCES without (dark blue) & with (light blue) use of the "TRAN." (loan funds, red line)
0 0 0
80000
80000
160000
210000
290000
340000
400000
450000
450000
450000400000
400000
340000
340000
340000
0
242966
258985206306
16137
-1129
-47947
-148799-197707
-273218-315300
-381387
-312505-420957
-53865
-168521
19262
-39397
-4686
0
START
14-Jul-1
0
28-Jul-1
0
11-Aug-1
0
25-Aug-1
0
08-Sep-1
0
22-Sep-1
0
06-Oct-1
0
20-Oct-1
0
03-Nov-10
17-Nov-10
01-D
ec-10
15-D
ec-10
29-D
ec-10
12-Jan-11
26-Jan-11
09-Feb-1
1
23-Feb-1
1
09-Mar-1
1
23-Mar-1
1
06-Apr-1
1
20-Apr-1
1
04-May-11
18-May-11
01-Jun-1
1
15-Jun-1
1
30-Jun-1
1END
-400
-300
-200
-100
0
100
200
300
400
500
600
DO
LLA
RS
(mill
ions
)
PROPERTY TAX, VEHICLE LICENSE FEE (VLF) & SALES TAX
Replacement
LICENSES, PERMITS, FEES & FINES
UTILITIES USER's TAXES (electric, gas & telephone)
SALES TAX
BUSINESS TAX
TRANSFER from HARBOR & AIRPORTS
DWP POWER TRANSFER
TRANSIENT OCCUPANCY TAX
DOCUMENTARY TRANSFER TAX
PARKING USER's TAX
INTEREST INCOME
PARKING FINES
ALLOCATIONS from OTHER FUNDS (not TRAN)
Borrowings from RESERVE FUND
ALL OTHER REVENUES
EMPLOYEE's BASE SALARIES
DENTAL & HEALTH INSURANCE SUBSIDY
SERVICES, EQUIPMENT & SUPPLIES & FY2010, too
LEASE PAYMENTS
INTER-FUND BILLINGS & TRANSFERS
...and...ALLOCATIONS to OTHER FUNDS
INCREASES / DECREASES. in BALANCE SHEET ACCOUNTS
(sic)
LACERS & FIRE-POLICE PENSION CONTRIBUTIONS
RUNNING CASH BALANCE "before" using TRAN FUNDS
RUNNING CASH BALANCE "after" using TRAN FUNDS
CUMULATIVE USE of TRAN to the GENL FUND
FY2011-2012 CASH FLOW data from the CONTROLLER who pays our City's Expenses every 2 weeks.REVENUES (bars above the ZERO line) are inadequate until December when we start receiving Property Taxes.
BLUE LINES are CASH BALANCES without (dark blue) & with (light blue) use of the "TRAN." (loan funds, red line)
$2
.74
$2
.85
$3
.14
$3
.22
$3
.33
$3
.58
$3
.91
$4
.13
$4
.38
$4
.36
$4
.46
$4
.32
$4
.38
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$0
$1
$2
$3
$4
$5
Billio
ns o
f D
olla
rs
All Other Revenues
Licenses, Permits, Fees & Fines
Transient Occupancy (Hotel) Tax
Business Tax
Sales Tax
Utility Users' Taxes
Property Tax
General Fund REVENUES have "topped out" over the past 5 years
$0.015
$0.248$0.190
$0.328
$0.297
$0.332
$0.443
$0.650
$0.618
$0.767
$0.909
$0.975
$1.038
$1.164
$1.204
9.0%6.7%
10.5%9.2%
10.0%
12.4%
16.7%15.0%
17.5%
20.9%
21.9%
24.0%
26.6%
27.5%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.000
0.300
0.600
0.900
1.200
1.500
Bill
ions
of D
olla
rs
TRAN as PerCent of Genl Fund TRAN PRINCIPLE
RELENTLESS INCREASE in the total TRAN
& TRAN as a PERCENT of GENERAL FUND
$2
.74
$2
.85
$3
.14
$3
.22
$3
.33
$3
.58
$3
.91
$4
.13
$4
.38
$4
.36
$4
.46
$4
.32
$4
.38
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$0
$1
$2
$3
$4
$5
Billio
ns o
f D
olla
rs
All Other Revenues
Licenses, Permits, Fees & Fines
Transient Occupancy (Hotel) Tax
Business Tax
Sales Tax
Utility Users' Taxes
Property Tax
General Fund REVENUES have "topped out" over the past 5 years
This is YOUR L.A. City BUDGET DEFICIT SCORE CARD A COMPREHENSIVE COMPILATION of DATA POINTS for
REDUCING the Los Angeles City BUDGET DEFICIT ... focusing
on the GENERAL FUND because of its "discretionary" nature.
Per Cent
Estimate of
FY2012-2013
Maximum
Estimated
FY2011-2012
effect on
Sample CHOICES
REVENUES CHANGE DEFICIT GENL FUND SCORE
DEFICIT ON JULY 1, 2011 --> $220,000,000FINAL TRAN PAYMENT (due Auf 12, 2012) --> $600,000,000
UNPAID LAPD OVER-TIME (due July 1, 2013) --> $100,000,000
TOTAL & FUTURE DEFICIT ON JULY 1, 2011 --> $920,000,000
Your CHALLENGE is to INCREASE INCOME & DECREASE EXPENSES by --> $220,000,000
ITEMS Respondent SUPPORTS
AMOUNTS that YOUR CHOICES may SAVE
EFFECTS of CHANGING to PERFORMANCE-BASED BUDGETING concepts & "culture" --> INCALCULABLE
less Respondent's EFFICIENCY RECOMMENDATIONS --> 34 $276,091,260
AFTER ALL THESE CHANGES ARE MADE, the DEFICIT will be --> -$56,091,260
"CONGRATULATIONS!!! You have eliminated the deficit!!!
xxThe CLAIM that our REVENUE (income) is DECREASING in the current ECONOMIC DOWNTURN is MISLEADING.Our City's REVENUE has remained close to $ 4.38 billion for six (6) years.These problems are due to our City's INCREASING EXPENSES (Salaries & Pensions)
These expenses are PROPOSED by the MAYOR and APPROVED by City Council.
1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #1 of 8 pagesa. Support and implement in a
timely way the
RECOMMENDATIONS in the
CONTROLLER's 38 AUDITS.
CONTROLLER
ESTIMATES the
total SAVINGS at
$ 300+ million
ESTIMATED
POTENTIAL BENEFIT
to the GENERAL
FUND
ACTIVE
ACTION
PLAN?
CONTROLLER's or
RESPONDENT's
EVALUATION
x
Audit
#6503/20/12 - COMMODITY PURCHASING
Possible LOSS of
$ 700,000 in the
City's $ 460
million TOTAL
COMMODITY
PURCHASES,
each year.
REPORT from
TREASURER
due on 4/23/12
and
Controller's
Response on
5/23/12.
Controller is
concerned with
ARBITRARY Brand
Name &
UNNECESARY
Urgent Delivery
Purchases
This AUDIT stressed
the value of
INCREASED
EFFICIENCY to avoid
PERSONNEL
LAYOFFs.
NOT YET Controller is QUITE SATISFIED
FINANCIAL IMPACT: $700,000
YES THANK YOU...
for YOUR SUPPORT
Audit
#6502/15/12 - ANIMAL SERVICES DEPARTMENT- no CF
POSSIBLE loss of
$ 1.3 MILLION in
uncollected dog
(only) license
fees, in the last
two years.
REPORT from
TREASURER
due on 3/15/12
with
RESPONSE
from
CONTROLLER
on 4/16/12.
Controller is
concerned with
1. Lax controls &
inconsistent use of
Administrative
Rules 2. Potential
Hazards to the
Animals
NOT YET Controller is QUITE SATISFIED
FINANCIAL IMPACT: $650,000
Do you support authorizing VETERINARIANS to CHARGE, COLLECT and ISSUE LICENSES for Dogs? YES THANK YOU...
for YOUR SUPPORT
Audit
#64
02/14/12 - CONDITION of City TREASURY FUNDS and REVIEW of CASH & INVESTMENT ACTIVITIES as of June 30, 2011
1. $ 340,669,689
in CASH (W-F
Bank) 2. $ 6.5
billion in General
Investment 3. $
1.4 billion in
Specific
Investment Pool
REPORT from
TREASURER
due on 3/14/12
with
RESPONSE
from
CONTROLLER
on 4/16/12.
Controller is
concerned with
1. Trading Dates
2. 5 missing
checks 3. List of
Authorized
Signatories
"CONDITION
REPORT" only ...
SPECIFIC FINANCIAL
IMPACT is not stated.
NO "REAL" DATA
provided
Controller is QUITE SATISFIED
FINANCIAL IMPACT: $1YES
Audit
#63
01/12/12 - STREET FURNITURE contract with CBS-DeCaux - CF 12-0073
POSSIBLE TOTAL
REVENUE $ 150
million over 20
years (2001 -
2021). Under $
30 million
received, so far.
Audits CMTE
estimates
$ 23 million
lost, so far,
from franchise
rate alculation
errors & slow
approvals.
POTENTIAL
REVENUE is $ 7.5
million per year
(on average)
Heard in Audits &
Govt Efficiency Cmte
on 02/28/12.
Referred to CAO &
CLA for proposals to
improve.
NOT YET Controller is QUITE SATISFIED
FINANCIAL IMPACT: $7,500,000YES
Audit
#6211/28/11 - City's SHARE of AB1290 (CRA) funds - CF 11-0349-S1
AT RISK is $ 1.7
million in addition
to the $ 27
million in CRA
FUNDS.
Controller is
concerned
with an
absence of
Established
CRA
Accounting
Policy"
Controller is
concerned over
possible
miscalculations of
CRA "Pass-thru
Funds"
75% satisfied by CRA
but nothing from CLA
yet. Needs ACTION
from Audits & Govt
Efficiency Cmte.
ALMOST DONE
Controller is ALMOST SATISFIED
FINANCIAL IMPACT: $1,700,000YES
Audit
#61
10/14/11-CONVENTION CENTER PARKING REVENUES & EXPENSES - no Council File
LA Convention Center
responded,
satisfactorily
NO "REAL" DATA
PROVIDEDController is SATISFIED
FINANCIAL IMPACT: $1YES
1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #2 of 8 pagesa.
Support and implement in a
timely way the
RECOMMENDATIONS in the
CONTROLLER's 38 AUDITS.
AMOUNT opened
to QUESTION
CONTROLLER
ESTIMATES the
total SAVINGS at
about $ 300+
million
ESTIMATED
POTENTIAL BENEFIT
to the
GENERAL FUND
ACTIVE
ACTION
PLAN?
CONTROLLER's or
RESPONDENT's
EVALUATION
x
Audit
#60
06/0911 - AUDIT - DOT's Parking Meter Collections Process - CF #11-0989
City received
$ 34 and # 36
million in
PARKING FEES &
paid $ 2 & $ 3
million to SERCO
in FY2009-10 and
FY2010-11,
respectively.
City has NO
INVENTORY of
its 36,000
meters and
$300,000
worth of
Scanners
which require
$ 200,000 per
year to keep
working.
DOT has no clear
and efficient
Process. Audit not
yet reviewed by
Audits & Govt
Efficiency
Committee
No response from
DOT, yet (01/31/12)NOT YET Controller is NOT
SATISFIED
FINANCIAL IMPACT: $5,000,000YES
Audit
#5805/11/11 - AUDIT - Citywide use of Cell Phones
Lack of diligence,
Lack of Use or
Improper use
could save $ 1M
DONE Controller is SATISFIED
FINANCIAL IMPACT: $1,000,000YES
Audit
#5704/26/11 - AUDIT - LADOT's Citation activities re: Scofflaw Activities
Lost Revenue
from NOT CITING
CARS with >5
Parking Citation
could be ~$
15M
DONE Controller is SATISFIED
FINANCIAL IMPACT: $15,000,000YES
Audit
#5604/12/11 - AUDIT - CAO's Report on LADWP's Use of ARRA Funds NOT YET Controller is NOT
SATISFIED
FINANCIAL IMPACT: $10,000,000
YES
Audit
#55
04/07/11 - PERFORMANCE AUDIT - DWP's Renewable Portfolio Standard Program
This does NOT
IMPACT CITY
BUDGET.
(Genl Fund)
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $1YES
Audit
#5403/03/11 - AUDIT - LADWP use of ARRA Funds
This does NOT
IMPACT CITY
BUDGET.
(Genl Fund)
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $1YES
Audit
#5301/14/11 - AUDIT - Treasurer & City Funds as of June 30, 2010
NO "REAL" DATA
PROVIDEDController is SATISFIED
FINANCIAL IMPACT: $10,000,000YES
1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #3 of 8 pages
a. Support and implement in a
timely way the
RECOMMENDATIONS in the
AMOUNT opened
to QUESTION
ESTIMATED
POTENTIAL BENEFIT
to the
GENERAL FUND
ACTIVE
ACTION
PLAN?
CONTROLLER's or
RESPONDENT's
EVALUATION
x
Audit
#5201/14/11 - F/U AUDIT - Treasurer
NO "REAL" DATA
PROVIDEDController is SATISFIED
FINANCIAL IMPACT: $1,000,000YES
Audit
#51
01/14/11 - AUDIT - CAO's Oversight of ARRA Processes by the Office of Finance
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $10,000,000YES
Audit
#50
12/14/10 - AUDIT - Special LA Housing Departrment Revenue Funds)
This does NOT
IMPACT CITY
BUDGET.
(General Fund)
No measurable
outcomes found by
the Controller.
NO "REAL" DATA
provided
Controller is NOT SATISFIED
FINANCIAL IMPACT: $1
YES THANK YOU...
for YOUR SUPPORT
Audit
#49
10/27/10 - AUDIT - LAUSD FACILITIES & CONSTRUCTION SELECTION PROCESS
This does NOT
IMPACT CITY
BUDGET.
(General Fund)
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $1
Do you support the CONTROLLER's recommendation re: MANAGING W/C CLAIMS? YES THANK YOU...
for YOUR SUPPORT
Audit
#48
10/13/10 - AUDIT - MANAGEMENT of WORKER's COMPENSATION CLAIMS
Managed by the
City Attorney,
Personnel & the
CAO
average 5.8
years to settle
(1.0 year is the
standard)
Over $ 1.5 BILLION
in TOTAL
outstanding claims
liability
NOT YET NO ACTION, YET.
FINANCIAL IMPACT: $10,000,000
Do you support the CONTROLLER's recommendation re: MANAGING W/C CLAIMS? YES THANK YOU...
for YOUR SUPPORT
Audit
#47
09/29/10 - AUDIT - PHOTO RED-LIGHT CAMERAS (to improve traffic safety and produce traffic citations)
NET COST:
$ 1.5 million in
2008 and
$ 1.0 million in
2009
PUBLIC IS
OFFENDED by
this "BIG
BROTHER IS
WATCHING
YOU"
imposition.
NO documentable
IMPROVEMENT in
traffic safety.
Contract extended
until April 2011.
There is
CONTROVERSY as to
WHETHER OR NOT
this RED-LIGHT
CAMERAS decrease
accidents.
NOT YETController Opposes
CONTRACT RENEWAL in March 2011
FINANCIAL IMPACT: $2,000,000
Do you support the CONTROLLER's recommendation to ELIMINATE THE RED-LIGHT CAMERAS? YES THANK YOU...
for YOUR SUPPORT
Audit
#46
09/16/10 - AUDIT of DEPARTMENT OF TRANSPORTATION (DOT) handling of ARRA (Special) Funds
This does NOT
IMPACT CITY
BUDGET.
(General Fund)
DOT rec'd $ 40
million,
created only 9
of 26 jobs
Only 11% of DOT
cars equipped in a
10 year contract
UNDETERMINED but
POTENTIALLY VERY
NEGATIVE to LA's
REPUTATION with
the FED. GOVT.
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $1
Should the City encourage the full hiring into these DOT ARRA-supported (Special Funded) positions? YES THANK YOU...
for YOUR SUPPORT
1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #4 of 8 pagesa. Support and implement in a
timely way the
RECOMMENDATIONS in the
ESTIMATED
POTENTIAL BENEFIT
to the
GENERAL FUND
ACTIVE
ACTION
PLAN?
CONTROLLER's or
RESPONDENT's
EVALUATION
x
Audit
#45
09/16/10 - AUDIT of DEPARTMENT OF PUBLIC WORKS (DPW) handling of ARRA (Special) Funds
This does NOT
IMPACT CITY
BUDGET.
(General Fund)
DPW rec'd $
70.6 million,
created only
45 of 238 jobs
FEDERAL OPINION
OF L.A.
MANAGEMENT
ABILITY may have
been damaged.
UNDETERMINED but
ONE MORE EXAMPLE
OF POOR
MANAGEMENT.
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $1
Should the City encourage the full hiring into these DPW ARRA-supported (Special Funded) positions? YES THANK YOU...
for YOUR SUPPORT
Audit
#44
08/10/10 - AUDIT - LADOT Contract with Integrated System Research for an Automated Vehicle Locator System
NOT YET
FUNCTIONAL due
to a LACK of
available funding
for ITA SUPPORT
FINANCIAL IMPACT: $1,000,000Should the City contract for an independent evaluation of the OOF collections policies and effectiveness? YES
Audit
#43
08/03/10 - Forensic AUDIT of J.H. Kishi Co. (contractor of Golf Cart Rentals for Rec. & Parks)
Kishi Co
underpaid the
City by at least
$ 16,252.
This issues
showed Rec. &
Park's willingness
to keep services
"in-house."
ISSUE RESOLVED? NOT YET
Controller opposes CONTRACT RENEWAL & supports return of Golf Cart rental management
to Rec. & Parks
FINANCIAL IMPACT: Loss of $ 16,252 (or more??) in fees. $16,252Do you believe the City should or CAN manage its own parking, golf, Zoo, Convention Ctr & museum, etc? YES
Audit
#4207/27/10 - Semi-Annual Report on Anti-Gang Strategy (Second Report)
This does NOT
IMPACT CITY
BUDGET.
(General Fund)
$ 525,000 & 12
months spent
No measurable
outcomes found by
the Controller.
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: NO DEFINITE IMPACT … We need effective gang control $525,000 $ 525,000 per year in
programs and may need to develop a BETTER PROGRAM. potential savings
Should the City contract for an INDEPENDENT EVALUATION of its gang control programs? YES THANK YOU...
for YOUR SUPPORT
Audit
#41
07/01/10 - This is the SEMINAL AUDIT on CITYWIDE BILLING & COLLECTIONS by the Office of Finance. Most people have now downgraded the annual recovery to between $ 10 & $ 85 millions.
Even if these
data are only
25% correct,
"We are stuck in
the mud with
outdated
practices since
2007."
Accordint to
these data,
only 53% OF
ALL OF THE
CITY's BILLS
WERE
COLLECTED.
MACIAS (Outside
Advisor) found:
$ 553M billed
$ 293M received
--------------- $
260M
UNCOLLECTED
in FY2008-2009
THIS MATERIAL IS NOT INCLUDED IN
THE TOTAL DEFICITS, above.
… BUT …
UPDATED DATA FOR SEVERAL CITY INCOMES and DEPARTMENTS FOLLOWS.
FINANCIAL IMPACT: CRITICALLY IMPORTANT!!! $ 260,000,000Should the City create an Inspector General, independent of the OOF collections policies & activities? YES
THANK YOU...
for YOUR SUPPORT
Audit
#41a 07/01/10 - AUDIT - PARKING CITATIONS written by DOT staff.
We are "stuck in
the mud" with
outdated
practices since
2007
Only 46% of
the City's
PARKING
FINES were
collected.
(?Billings over-
estimated)
MACIAS (Outside
Advisor) found:
$ 282M billed
$ 130M received
--------------- $
152M
UNCOLLECTED
in FY2008-2009
THIS MATERIAL IS NOT INCLUDED IN
THE TOTAL DEFICITS, above.
… BUT …
UPDATED DATA FOR SEVERAL CITY INCOMES and DEPARTMENTS FOLLOWS.
FINANCIAL IMPACT: CRITICALLY IMPORTANT!!! $ 152,000,000
1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #7 of 8 pages
a. Support and implement in a
timely way the
RECOMMENDATIONS in the
CONTROLLER's 38 AUDITS.
AMOUNT opened
to QUESTION
ESTIMATED
POTENTIAL BENEFIT
to the
GENERAL FUND
ACTIVE
ACTION
PLAN?
CONTROLLER's or
RESPONDENT's
EVALUATION
x
Audit
#41b
07/01/10 - AUDIT - AMBULANCE & EMERGENCY MEDICAL SERVICES (EMS)
We are "stuck in
the mud" with
outdated
practices since
2007
Only 38% of
the City's
EMERGENCY
MEDICAL
BILLINGS were
collected.
MACIAS (Outside
Advisor) found:
$ 151M billed
$ 58M received -
-------------- $ 93M
UNCOLLECTED
in FY2008-2009
THIS MATERIAL IS NOT INCLUDED IN
THE TOTAL DEFICITS, above.
… BUT …
UPDATED DATA FOR SEVERAL CITY INCOMES and DEPARTMENTS FOLLOWS.
c HEALTH CARE is a STATE/COUNTY RESPONSIBILITY, not a City Responsibility. The City's billing techniques are unsophisticated.Negotiate Specific Funds from the COUNTY and/or STATE for our Ambulance / EMS Services and transfer collections to the COUNTY.
FINANCIAL IMPACT: CRITICALLY IMPORTANT!!! $ 152,000,000
Audit
#41c
07/01/10 - AUDIT - PARKING FINES (one of 18 direct General Fund Incomes with citations written by the DOT with collections "outsourced" to SERCO.
MACIAS
estimated a
COLLECTION
RATE of 41%.
.
We will use 80%.
CASH FLOW
data show
$ 90M banked
(66%) of the $
137M in the
FY2011-2012
BUDGET as of
Feb. 22, 2012
Using Controller's
FY2012-13
projections: $
141M billed
$ 113M collected
$ 28M
UNCOLLECTED
The Commission on
Revenue
Enhancement (CORE)
says that few if any
Departments or the
Office of Finance
assess or collect late
penalties or penalty
interest on overdue
accounts.
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: Critically important but will take some time to evaluate, negotiate and implement.$30,000,000
Should the City act to increase Parking Fine Collections and the efficiencty of the Process? YES THANK YOU...
for YOUR SUPPORT
Should the City contract for an independent evaluation of the OOF collections policies and effectiveness? YES
Audit
#41d
07/01/10 - AUDIT - PARKING USER's TAX (one of 18 direct General Fund Incomes paid directly to the City.)
MACIAS didn't
estimate a
COLLECTION
RATE.
.
We will use 80%.
CASH FLOW
data show
$ 53M banked
(60%) of the $
88M in the
FY2011-2012
BUDGET as of
Feb. 22, 2012
Using Controller's
FY2012-13
projections: $
89M billed
$ 71M collected
$ 18M
UNCOLLECTED
The practices of
expeditious sham
company sales and
taking CASH ONLY
allows Parking
Companies to evade
and underestimate
their Parking User's
Tax.
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $25,000,000
Should stricter permitting, sales documentation and surveillance measures be applied to larger Facilities? YES THANK YOU...
for YOUR SUPPORT
Audit
#41e 07/01/10 - AUDIT - AMBULANCE SERVICES
MACIAS
estimated a
COLLECTION
RATE of 38%.
We use 67%,
here.
Some
(unknown
number) of the
ambulance
patients have
no insurance;
no way to pay.
Using FY2011-12
budget proposal:
$ 100M billed
$ 67M collected
$ 33M
uncollected
The difficulties in
billing and collecting
from HMOs & MEDI-
CAL are well known
to Doctors &
Hospitals. Now the
City is learning, too.
NOT YET Controller is NOT SATISFIED
HEALTH CARE is a STATE/COUNTY RESPONSIBILITY (not a City Responsibility). City's billing techniques are unsophisticated.Negotiate Specific Funds from the COUNTY for our Ambulance / EMS Services and COUNTY HANDLES & RECEIVES the collections.
FINANCIAL IMPACT: $33,000,000
Do you support IMPROVING the CITY's BILLING & COLLECTIONS of Emergency Medical Services? YES THANK YOU...
for YOUR SUPPORT
1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #8 of 8 pagesa.
x
Audit
#41f
07/01/10 - non-AMBULANCE EMERGENCY MEDICAL SERVICES (EMS) for first aid, brief care, assessment and non-transport triage, on-site stabilization-BCLS-ACLS, etc.)
These non-
transport
services are
often not
billed.
No data found.
Rough estimate
of $ 5M used,
here.
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $5,000,000
Do you support IMPROVING the CITY's BILLING & COLLECTIONS of non-Ambulance EMS services? YES THANK YOU...
for YOUR SUPPORT
Audit
#41g
TRANSFERING the unresolved FINANCIAL RESPONSIBILITY for AMBULANCE and EMERGENCY MEDICAL SERVICES (EMS) to the COUNTY and/or STATE.
ASSUMES THAT
#41e and #41f
HAVE BEEN
SELECTED, too.
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT (#41e + #41f + #41g = Sum of all EMS Service Costs) $62,000,000
Do you support petitioning the COUNTY and STATE to assume the City of LA's EMS service costs? YES THANK YOU...
for YOUR SUPPORT
Audit
#41h
07/01/10 - AUDIT - BUILDING & SAFETY (issues and charges for permits and inspections)
DBS should be
80% self-funded
from its own
activities.
Cost Analysis
would create a
better basis for
these fees.
Using FY2011-12:
$ 30M total budget
$ 23M from other
sources --> 80% of
$ 23M = $ 18M of
added revenue
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $18,000,000
Do you support DEPARTMENTS that BUILDING & SAFETY shoud primarily self-funded? YES THANK YOU...
for YOUR SUPPORT
Audit
#41i
07/01/10 - AUDIT - POLICE (charges for permits, false alarms, impounds and services to Airports.)
TRAFFIC
TICKETS are NOT
INCLUDED here.
WHERE ARE
THEY?
MACIAS
estimated a
COLLECTION
RATE of 59%.
We use 80%
here
Using FY2011-12
budget proposal:
$ 83M billed
$ 66M collected
$ 17M
UNCOLLECTED
NOT YET Controller is NOT SATISFIED
FINANCIAL IMPACT: $17,000,000Do you support IMPROVING the LAPD's BILLING & COLLECTIONS and creating a PERMITS BOARD? YES
SPECIAL RECOMMENDATION - Either move the 90% of the budgeted DWP POWER TRANSFER PAYMENT up to JULY or charge interest from July 1, each year...like any Property Tax.
A modification
may be made
...later... when
the final, audited
DWP Gross
Income is
reported.
These funds,
received in July,
can decrease the
principle of the
TRAN.
NOT A CONTROLLER AUDIT RELATED ISSUE.
DIRECTLY FROM THE NCBAs.
FINANCIAL IMPACT: $10,000,000
YES