Neighborhood Council Budget Advocates White Paper 2 - 2012

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Neighborhood Council Budget Advocates White Paper 2 - 2012

  1. 1. CHARTS AND TABLES of BASIC BUDGET DATA and SCORE CARD of RECENT CONTROLLERs AUDITS prepared by: Daniel Wiseman 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.) PW - Board of Public Works $15,212,179 POLICE PW - CONTRACTS ADMINISTRATION $1,167,771,840 $28,486,926 PW - ENGINEERING Bureau $71,567,612 PW - SANITATION Bureau $221,352,636 PW - STREET LIGHTING Bureau PLANNING $23,908,283 $25,393,267 PERSONNEL* PW - STREET SERVICES Bureau $41,267,436 $146,019,376 D.O.N.E. TRANSPORTATION $1,832,164 $127,917,673 MAYOR ZOO $22,752,477 $18,283,477INFORMATION TECH. AGENCY* LIBRARY FUND $78,379,548 $95,648,178 HOUSING RECREATION & PARKS FUND $52,146,171 $179,586,089 GENERAL SERVICES* AGING $228,012,024 $3,792,602 FIRE ANIMAL SERVICES $472,597,193 $19,919,848 FINANCE & TREASURER BUILDING & SAFETY $37,644,214 $68,943,603 ETHICS COMMISSION CITY ADMINISTRATION OFFICE (C.A.O.) $2,031,383 $11,580,492 EMPLOYEE RELATIONS BOARD CITY ATTORNEY $421,616 $94,950,894 EMERGENCY MANAGEMENT CITY CLERK $1,600,598 $8,603,838 El Pueblo de Los Angeles COMMUNITY DEVELOPMENT $1,517,194 $26,619,693 DISABILITY CONTROLLER $1,608,668 $13,791,344 CULTURAL AFFAIRS CONVENTION CENTER $7,421,341 $24,264,518 COUNCIL (15 MEMBERS) $18,881,782
  2. 2. DEPARTMENTAL BUDGETS - EXPENSES or ALLOCATIONS - FY2011-2012 Updated:Updated:MARCH 27, 2012"BUDGET LINE ITEMS" for the XX???? 35 MAYORs LAST YEAR PROPOSEDMAYORs PROPOSEDMAYORs PROPOSED SALARIES & & &non-PROPRIETARY CITY DEPARTMENTS LAST YEARs BUDGET YEAR-to-YEAR CITY COUNCIL APPROVED COUNCIL APPROVED PER CENT of CITY as a POSITIONSand the "SPECIAL FUND(s)" ESTIMATE Difference TOTAL BUDGET basic SALARIES ALLOCATED as of FY2010-2011 - (05/25/2011) FY2011-12 FY2011-12 - (05/25/2011) FY11-12 - (05/25/2011) BUDGET July 1, 2011AGING $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
  3. 3. FY2011-2012 CASH FLOW data from the CONTROLLER who pays our Citys Expenses eve REVENUES (barsabovethe ZERO line) are inadequate until December when we start receiving PropertyTaxe BLUE LINES are C SH BA NC A LA ES without (darkblue) & with (light blue) use of the"TRA N." (loan funds, r 600 500 45 45 00 45 00 00 00 00 00 40 40 40 00 00 00 00 00 00 3 400 34 34 000 34 00 40 00 00 00 00 00 29 00 00 300 25 42 89 96 2 85 62 21 06 00 30 00 6 200DOLLARS (millions) 16 00 00 80 80 0 100 00 00 0 19 16 26 13 2 7 0 0 0 0 0 -1 -4 12 68 9 -4 6 -3 93 -5 79 97 38 -100 47 65 -1 48 -200 -1 79 - 68 9 19 52 1 77 07 -300 -2 73 21 - 8 31 -3 138 12 7 -330 -40 5 5 80 20 5 95 7 -400 D 28 Ju T 09 eb 1 23 Ma 11 30 un 11 un 1 1 08 ug 10 22 ep 0 11 -Ju 10 25 Au 10 03 Oc 10 17 No 10 09 Jan 1 23 eb 1 06 ar 1 20 pr 1 04 Ap 1 18 Ma 11 06 ep 0 20 Oc 0 01 ov 10 15 ec 0 01 ay 1 15 Ju 1 29 ec 0 12 ec 0 26 an 0 -F -1 -J -1 -1 N - R -S -1 -M r-1 -A -1 - -1 -F -1 - -1 -M y-1 - -1 -D -1 -S -1 - -1 -D -1 -D -1 -J -1 - - -J n- -A g- l- - l- - r- - t- - t- E -N v- 14 TA S PROPERTY TAX, VEHICLE LICENSE FEE (VLF) & SALES TAX Borrowings from RESERVE FUND Replacement ALL OTHER REVENUES LICENSES, PERMITS, FEES & FINES EMPLOYEEs BASE SALARIES UTILITIES USERs TAXES (electric, gas & telephone) DENTAL & HEALTH INSURANCE SUBSIDY SALES TAX SERVICES, EQUIPMENT & SUPPLIES & FY2010, too BUSINESS TAX LEASE PAYMENTS TRANSFER from HARBOR & AIRPORTS INTER-FUND BILLINGS & TRANSFERS
  4. 4. Replacement ALL OTHER REVENUESLICENSES, PERMITS, FEES & FINES EMPLOYEEs BASE SALARIESUTILITIES USERs TAXES (electric, gas & telephone) DENTAL & HEALTH INSURANCE SUBSIDYSALES TAX SERVICES, EQUIPMENT & SUPPLIES & FY2010, tooBUSINESS TAX LEASE PAYMENTSTRANSFER from HARBOR & AIRPORTS INTER-FUND BILLINGS & TRANSFERSDW POW P ER TRANSFER ...and...ALLOCATIONS to OTHER FUNDSTRANSIENT OCCUPANCY TAX INCREASES / DECREASES. in BALANCE SHEET ACCOUNTSDOCUMENTARY TRANSFER TAX (sic)PARKING USERs TAX LACERS & FIRE-POLICE PENSION CONTRIBUTIONSINTEREST INCOME RUNNING CASH BALANCE "before" using TRAN FUNDSPARKING FINES RUNNING CASH BALANCE "after" using TRAN FUNDSALLOCATIONS from OTHER FUNDS (not TRAN) CUMULATIVE USE of TRAN to the GENL FUND
  5. 5. RELENTLESS INCREASE in the total TRAN & TRAN as a PERCENT of GENERAL FUND 1.500 $1 64 $1 .2 .1 04 1.200 $1 75 .0 $0 09Billions of Dollars 38 .9 $0 .9 $0 0.900 .7 67 $0 $0 50 .6 .6 18 0.600 $0 .4 43 1 4% $0 $0 97 1 % $0 28 9 5% .3 .3 27 % $0 26 % .2 24 % 32 1 0% 21 % .5 .2 $048 6 % 20 % .6 .0 0.300 17 % % .9 15 % .9 .1 .7 6. .5 10 % 90 2. 7 .0 0. 9. 15 . $0 .2 0 .0 0.000 2001 2011 1997 1998 1999 2000 2002 2003 2006 2007 2008 2009 2010 2012 2004 2005 TRAN as PerCent of Genl Fund TRAN PRINCIPLE General Fund REVENUES have "topped out" over the past 5 years $5 $4.46 $4.38 $4.38 $4.36 $4 $4.32 Billions of Dollars $4.13 $3.91 $3.58 $3 $3.33 $3.22 $3.14 $2.85 $2.74 $2 $1 $0 01 11 99 00 02 03 05 06 07 08 09 10 04 20 20 19 20 20 20 20 20 20 20 20 20 20 All Other Revenues Sales Tax Licenses, Permits, Fees & Fines Utility Users Taxes Transient Occupancy (Hotel) Tax Property Tax Business Tax
  6. 6. Business Tax
  7. 7. 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. Maximum Estimated Estimate of FY2011-2012 Sample CHOICES Per Cent FY2012-2013 effect on REVENUES CHANGE DEFICIT GENL FUND SCORE DEFICIT ON JULY 1, 2011 --> $220,000,000 FINAL 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 AMOUNTS that YOUR Respondent CHOICES may SAVE SUPPORTS EFFECTS of CHANGING to PERFORMANCE-BASED BUDGETING concepts & "culture" --> INCALCULABLE less Respondents 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!!! x xThe CLAIM that our REVENUE (income) is DECREASING in the current ECONOMIC DOWNTURN is MISLEADING.Our Citys REVENUE has remained close to $ 4.38 billion for six (6) years.These problems are due to our Citys INCREASING EXPENSES (Salaries & Pensions)These expenses are PROPOSED by the MAYOR and APPROVED by City Council.
  8. 8. 1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #1 of 8 pages a. Support and implement in a CONTROLLER ESTIMATED ESTIMATES the POTENTIAL BENEFIT ACTIVE CONTROLLERs or timely way the total SAVINGS at to the GENERAL ACTION RESPONDENTs RECOMMENDATIONS in the PLAN? EVALUATION $ 300+ million FUND CONTROLLERs 38 AUDITS. x Possible LOSS of REPORT from Controller is This AUDIT stressed $ 700,000 in the TREASURER concerned with the value of Citys $ 460 due on 4/23/12 ARBITRARY BrandAudit 03/20/12 - COMMODITY INCREASED Controller is QUITE million TOTAL and Name & NOT YET #65 PURCHASING COMMODITY Controllers UNNECESARY EFFICIENCY to avoid SATISFIED PERSONNEL PURCHASES, Response on Urgent Delivery LAYOFFs. each year. 5/23/12. Purchases FINANCIAL IMPACT: $700,000 THANK YOU... YES for YOUR SUPPORT REPORT from Controller is POSSIBLE loss of TREASURER concerned with $ 1.3 MILLION in due on 3/15/12 1. Lax controls &Audit 02/15/12 - ANIMAL SERVICES uncollected dog with inconsistent use of Controller is QUITE NOT YET #65 DEPARTMENT- no CF (only) license RESPONSE Administrative SATISFIED fees, in the last from Rules 2. Potential two years. CONTROLLER Hazards to the on 4/16/12. Animals FINANCIAL IMPACT: $650,000 THANK YOU...Do you support authorizing VETERINARIANS to CHARGE, COLLECT and ISSUE LICENSES for Dogs? YES for YOUR SUPPORT 1. $ 340,669,689 REPORT from Controller is in CASH (W-F TREASURER concerned with 02/14/12 - CONDITION of City Bank) 2. $ 6.5 due on 3/14/12 "CONDITION 1. Trading Dates NO "REAL"Audit TREASURY FUNDS and REVIEW of billion in General with REPORT" only ... Controller is QUITE 2. 5 missing DATA #64 CASH & INVESTMENT ACTIVITIES Investment 3. $ RESPONSE checks 3. List of SPECIFIC FINANCIAL provided SATISFIED as of June 30, 2011 1.4 billion in from IMPACT is not stated. Authorized Specific CONTROLLER Signatories Investment Pool on 4/16/12. FINANCIAL IMPACT: $1 YES Audits CMTE POSSIBLE TOTAL estimates Heard in Audits & REVENUE $ 150 $ 23 million POTENTIAL Govt Efficiency Cmte 01/12/12 - STREET FURNITURE million over 20Audit lost, so far, REVENUE is $ 7.5 on 02/28/12. Controller is QUITE contract with CBS-DeCaux - CF 12- years (2001 - NOT YET #63 0073 2021). Under $ from franchise million per year Referred to CAO & SATISFIED rate alculation (on average) CLA for proposals to 30 million errors & slow improve. received, so far. approvals. FINANCIAL IMPACT: $7,500,000 YES Controller is concerned Controller is AT RISK is $ 1.7 75% satisfied by CRA with an concerned over million in addition but nothing from CLAAudit 11/28/11 - Citys SHARE of AB1290 absence of possible ALMOST Controller is ALMOST to the $ 27 yet. Needs ACTION #62 (CRA) funds - CF 11-0349-S1 Established miscalculations of DONE SATISFIED million in CRA from Audits & Govt CRA CRA "Pass-thru FUNDS. Efficiency Cmte. Accounting Funds" Policy" FINANCIAL IMPACT: $1,700,000 YES 10/14/11-CONVENTION CENTER LA Convention Center NO "REAL"Audit PARKING REVENUES & EXPENSES - responded, DATA Controller is SATISFIED #61 no Council File satisfactorily PROVIDED FINANCIAL IMPACT: $1 YES
  9. 9. 1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #2 of 8 pages a. CONTROLLER ESTIMATED Support and implement in a ESTIMATES the POTENTIAL BENEFIT ACTIVE CONTROLLERs or timely way the AMOUNT opened total SAVINGS at to the about $ 300+ GENERAL FUND ACTION RESPONDENTs RECOMMENDATIONS in the to QUESTION PLAN? EVALUATION million CONTROLLERs 38 AUDITS. x City has NO City received INVENTORY of $ 34 and # 36 its 36,000 DOT has no clear million in meters and and efficient 06/0911 - AUDIT - DOTs Parking PARKING FEES & $300,000 Process. Audit notAudit No response from Controller is NOT Meter Collections Process - CF #11- paid $ 2 & $ 3 worth of yet reviewed by NOT YET #60 0989 million to SERCO Scanners Audits & Govt DOT, yet (01/31/12) SATISFIED in FY2009-10 and which require Efficiency FY2010-11, $ 200,000 per Committee respectively. year to keep working. FINANCIAL IMPACT: $5,000,000 YES Lack of diligence,Audit 05/11/11 - AUDIT - Citywide use of Lack of Use or DONE Controller is SATISFIED #58 Cell Phones Improper use could save $ 1M FINANCIAL IMPACT: $1,000,000 YES Lost Revenue from NOT CITINGAudit 04/26/11 - AUDIT - LADOTs Citation CARS with >5 DONE Controller is SATISFIED #57 activities re: Scofflaw Activities Parking Citation could be ~$ 15M FINANCIAL IMPACT: $15,000,000 YESAudit 04/12/11 - AUDIT - CAOs Report on Controller is NOT NOT YET #56 LADWPs Use of ARRA Funds SATISFIED FINANCIAL IMPACT: $10,000,000 YES This does NOT 04/07/11 - PERFORMANCE AUDIT -Audit IMPACT CITY Controller is NOT DWPs Renewable Portfolio NOT YET#55 Standard Program BUDGET. SATISFIED (Genl Fund) FINANCIAL IMPACT: $1 YES This does NOTAudit 03/03/11 - AUDIT - LADWP use of IMPACT CITY Controller is NOT NOT YET #54 ARRA Funds BUDGET. SATISFIED (Genl Fund) FINANCIAL IMPACT: $1 YES NO "REAL"Audit 01/14/11 - AUDIT - Treasurer & City DATA Controller is SATISFIED #53 Funds as of June 30, 2010 PROVIDED FINANCIAL IMPACT: $10,000,000 YES
  10. 10. 1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #3 of 8 pages a. Support and implement in a ESTIMATED ACTIVE CONTROLLERs or AMOUNT opened POTENTIAL BENEFIT timely way the ACTION RESPONDENTs to QUESTION to the RECOMMENDATIONS in the PLAN? EVALUATION GENERAL FUND x NO "REAL"Audit 01/14/11 - F/U AUDIT - Treasurer DATA Controller is SATISFIED #52 PROVIDED FINANCIAL IMPACT: $1,000,000 YES 01/14/11 - AUDIT - CAOs OversightAudit Controller is NOT of ARRA Processes by the Office of NOT YET #51 Finance SATISFIED FINANCIAL IMPACT: $10,000,000 YES This does NOT 12/14/10 - AUDIT - Special LA No measurable NO "REAL"Audit IMPACT CITY Controller is NOT Housing Departrment Revenue outcomes found by DATA #50 Funds) BUDGET. SATISFIED the Controller. provided (General Fund) FINANCIAL IMPACT: $1 THANK YOU... YES for YOUR SUPPORT This does NOTAudit 10/27/10 - AUDIT - LAUSD IMPACT CITY Controller is NOT NOT YET #49 FACILITIES & CONSTRUCTION BUDGET. SATISFIED SELECTION PROCESS (General Fund) FINANCIAL IMPACT: $1 THANK YOU...Do you support the CONTROLLERs recommendation re: MANAGING W/C CLAIMS? YES for YOUR SUPPORT Managed by the average 5.8 Over $ 1.5 BILLION 10/13/10 - AUDIT - MANAGEMENT ofAudit City Attorney, years to settle in TOTAL WORKERs COMPENSATION NOT YET NO ACTION, YET. #48 CLAIMS Personnel & the (1.0 year is the outstanding claims CAO standard) liability FINANCIAL IMPACT: $10,000,000 THANK YOU...Do you support the CONTROLLERs recommendation re: MANAGING W/C CLAIMS? YES for YOUR SUPPORT PUBLIC IS There is NET COST: OFFENDED by NO documentable CONTROVERSY as to 09/29/10 - AUDIT - PHOTO RED- $ 1.5 million in this "BIG IMPROVEMENT inAudit WHETHER OR NOT Controller Opposes LIGHT CAMERAS (to improve traffic 2008 and BROTHER IS traffic safety. NOT YET CONTRACT RENEWAL in #47 safety and produce traffic citations) $ 1.0 million in WATCHING this RED-LIGHT March 2011 Contract extended CAMERAS decrease 2009 YOU" until April 2011. accidents. imposition. FINANCIAL IMPACT: $2,000,000 THANK YOU...Do you support the CONTROLLERs recommendation to ELIMINATE THE RED-LIGHT CAMERAS? YES for YOUR SUPPORT UNDETERMINED but This does NOT DOT recd $ 40 09/16/10 - AUDIT of DEPARTMENT Only 11% of DOT POTENTIALLY VERYAudit IMPACT CITY million, Controller is NOT OF TRANSPORTATION (DOT) cars equipped in a NEGATIVE to LAs NOT YET #46 handling of ARRA (Special) Funds BUDGET. created only 9 SATISFIED 10 year contract REPUTATION with (General Fund) of 26 jobs the FED. GOVT. FINANCIAL IMPACT: $1 THANK YOU...Should the City encourage the full hiring into these DOT ARRA-supported (Special Funded) positions? YES for YOUR SUPPORT
  11. 11. 1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #4 of 8 pages a. Support and implement in a ESTIMATED ACTIVE CONTROLLERs or timely way the POTENTIAL BENEFIT ACTION RESPONDENTs to the PLAN? EVALUATION RECOMMENDATIONS in the GENERAL FUND x FEDERAL OPINION This does NOT DPW recd $ UNDETERMINED but 09/16/10 - AUDIT of DEPARTMENT OF L.A.Audit IMPACT CITY 70.6 million, ONE MORE EXAMPLE Controller is NOT OF PUBLIC WORKS (DPW) MANAGEMENT NOT YET #45 handling of ARRA (Special) Funds BUDGET. created only ABILITY may have OF POOR SATISFIED (General Fund) 45 of 238 jobs MANAGEMENT. been damaged. FINANCIAL IMPACT: $1 THANK YOU...Should the City encourage the full hiring into these DPW ARRA-supported (Special Funded) positions? YES for YOUR SUPPORT NOT YET 08/10/10 - AUDIT - LADOT Contract FUNCTIONAL dueAudit with Integrated System Research for to a LACK of #44 an Automated Vehicle Locator available funding System for ITA SUPPORT FINANCIAL IMPACT: $1,000,000Should the City contract for an independent evaluation of the OOF collections policies and effectiveness? YES This issues Kishi Co Controller opposes 08/03/10 - Forensic AUDIT of J.H. showed Rec. &Audit underpaid the CONTRACT RENEWAL & Kishi Co. (contractor of Golf Cart Parks willingness ISSUE RESOLVED? NOT YET supports return of Golf #43 Rentals for Rec. & Parks) City by at least Cart rental management to keep services $ 16,252. to Rec. & Parks "in-house." 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 This does NOT No measurableAudit 07/27/10 - Semi-Annual Report on IMPACT CITY $ 525,000 & 12 Controller is NOT outcomes found by NOT YET #42 Anti-Gang Strategy (Second Report) BUDGET. months spent the Controller. SATISFIED (General Fund) 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 THANK YOU...Should the City contract for an INDEPENDENT EVALUATION of its gang control programs? YES for YOUR SUPPORT Even if these MACIAS (Outside Accordint to 07/01/10 - This is the SEMINAL data are only Advisor) found: these data, UPDATED DATA AUDIT on CITYWIDE BILLING & 25% correct, $ 553M billed THIS MATERIAL IS only 53% OF FOR SEVERAL CITYAudit COLLECTIONS by the Office of "We are stuck in $ 293M received NOT INCLUDED IN ALL OF THE … BUT … INCOMES and #41 Finance. Most people have now the mud with --------------- $ THE TOTAL CITYs BILLS DEPARTMENTS downgraded the annual recovery to outdated 260M DEFICITS, above. WERE FOLLOWS. between $ 10 & $ 85 millions. practices since UNCOLLECTED COLLECTED. 2007." in FY2008-2009 FINANCIAL IMPACT: CRITICALLY IMPORTANT!!! $ 260,000,000 THANK YOU...Should the City create an Inspector General, independent of the OOF collections policies & activities? YES for YOUR SUPPORT MACIAS (Outside Only 46% of Advisor) found: We are "stuck in the Citys UPDATED DATA $ 282M billed THIS MATERIAL IS the mud" with PARKING FOR SEVERAL CITYAudit 07/01/10 - AUDIT - PARKING $ 130M received NOT INCLUDED IN outdated FINES were … BUT … INCOMES and#41a CITATIONS written by DOT staff. --------------- $ THE TOTAL practices since collected. DEPARTMENTS 152M DEFICITS, above. 2007 (?Billings over- FOLLOWS. UNCOLLECTED estimated) in FY2008-2009 FINANCIAL IMPACT: CRITICALLY IMPORTANT!!! $ 152,000,000
  12. 12. 1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #7 of 8 pages Support and implement in a a. ESTIMATED ACTIVE CONTROLLERs or timely way the AMOUNT opened POTENTIAL BENEFIT ACTION RESPONDENTs RECOMMENDATIONS in the to QUESTION to the PLAN? EVALUATION CONTROLLERs 38 AUDITS. GENERAL FUND x MACIAS (Outside Only 38% of We are "stuck in Advisor) found: UPDATED DATA the Citys THIS MATERIAL IS 07/01/10 - AUDIT - AMBULANCE & the mud" with $ 151M billed FOR SEVERAL CITY Audit EMERGENCY NOT INCLUDED IN EMERGENCY MEDICAL SERVICES outdated $ 58M received - … BUT … INCOMES and #41b (EMS) practices since MEDICAL -------------- $ 93M THE TOTAL DEPARTMENTS BILLINGS were DEFICITS, above. 2007 UNCOLLECTED FOLLOWS. collected. in FY2008-2009c HEALTH CARE is a STATE/COUNTY RESPONSIBILITY, not a City Responsibility. The Citys 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 The Commission on CASH FLOW Revenue Using Controllers MACIAS data show Enhancement (CORE) 07/01/10 - AUDIT - PARKING FINES FY2012-13 estimated a $ 90M banked says that few if any (one of 18 direct General Fund projections: $ Audit COLLECTION (66%) of the $ Departments or the Controller is NOT Incomes with citations written by 141M billed NOT YET #41c the DOT with collections RATE of 41%. 137M in the $ 113M collected Office of Finance SATISFIED . FY2011-2012 assess or collect late "outsourced" to SERCO. $ 28M We will use 80%. BUDGET as of penalties or penalty UNCOLLECTED Feb. 22, 2012 interest on overdue accounts. $30,000,000 FINANCIAL IMPACT: Critically important but will take some time to evaluate, negotiate and implement. THANK YOU... Should the City act to increase Parking Fine Collections and the efficiencty of the Process? YES for YOUR SUPPORT Should the City contract for an independent evaluation of the OOF collections policies and effectiveness? YES The practices of CASH FLOW Using Controllers expeditious sham MACIAS didnt data show FY2012-13 company sales and 07/01/10 - AUDIT - PARKING estimate a $ 53M banked projections: $ taking CASH ONLY Audit USERs TAX (one of 18 direct COLLECTION (60%) of the $ Controller is NOT 89M billed allows Parking NOT YET #41d General Fund Incomes paid RATE. 88M in the SATISFIED $ 71M collected Companies to evade directly to the City.) . FY2011-2012 $ 18M and underestimate We will use 80%. BUDGET as of UNCOLLECTED their Parking Users Feb. 22, 2012 Tax. FINANCIAL IMPACT: $25,000,000 THANK YOU... Should stricter permitting, sales documentation and surveillance measures be applied to larger Facilities? YES for YOUR SUPPORT Some The difficulties in MACIAS Using FY2011-12 (unknown billing and collecting estimated a budget proposal: number) of the from HMOs & MEDI- Audit 07/01/10 - AUDIT - AMBULANCE COLLECTION $ 100M billed Controller is NOT ambulance CAL are well known NOT YET #41e SERVICES RATE of 38%. $ 67M collected SATISFIED patients have to Doctors & We use 67%, $ 33M no insurance; Hospitals. Now the here. uncollected no way to pay. City is learning, too. HEALTH CARE is a STATE/COUNTY RESPONSIBILITY (not a City Responsibility). Citys 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 THANK YOU... Do you support IMPROVING the CITYs BILLING & COLLECTIONS of Emergency Medical Services? YES for YOUR SUPPORT
  13. 13. 1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #8 of 8 pages a. x 07/01/10 - non-AMBULANCE These non- EMERGENCY MEDICAL SERVICES No data found. transportAudit (EMS) for first aid, brief care, Rough estimate Controller is NOT services are NOT YET#41f assessment and non-transport of $ 5M used, SATISFIED triage, on-site stabilization-BCLS- often not here. ACLS, etc.) billed. FINANCIAL IMPACT: $5,000,000 THANK YOU...Do you support IMPROVING the CITYs BILLING & COLLECTIONS of non-Ambulance EMS services? YES for YOUR SUPPORT TRANSFERING the unresolved ASSUMES THAT FINANCIAL RESPONSIBILITY forAudit #41e and #41f Controller is NOT AMBULANCE and EMERGENCY NOT YET#41g HAVE BEEN SATISFIED MEDICAL SERVICES (EMS) to the SELECTED, too. COUNTY and/or STATE. FINANCIAL IMPACT (#41e + #41f + #41g = Sum of all EMS Service Costs) $62,000,000 THANK YOU...Do you support petitioning the COUNTY and STATE to assume the City of LAs EMS service costs? YES for YOUR SUPPORT Using FY2011-12: DBS should be Cost Analysis $ 30M total budget 07/01/10 - AUDIT - BUILDING &Audit 80% self-funded would create a $ 23M from other Controller is NOT SAFETY (issues and charges for NOT YET#41h permits and inspections) from its own better basis for sources --> 80% of SATISFIED activities. these fees. $ 23M = $ 18M of added revenue FINANCIAL IMPACT: $18,000,000 THANK YOU...Do you support DEPARTMENTS that BUILDING & SAFETY shoud primarily self-funded? YES for YOUR SUPPORT MACIAS Using FY2011-12 TRAFFIC estimated a budget proposal: 07/01/10 - AUDIT - POLICE (charges TICKETS are NOTAudit COLLECTION $ 83M billed Controller is NOT for permits, false alarms, impounds INCLUDED here. NOT YET#41i and services to Airports.) WHERE ARE RATE of 59%. $ 66M collected SATISFIED We use 80% $ 17M THEY? here UNCOLLECTED FINANCIAL IMPACT: $17,000,000Do you support IMPROVING the LAPDs BILLING & COLLECTIONS and creating a PERMITS BOARD? YES A modification SPECIAL RECOMMENDATION - may be made These funds, Either move the 90% of the NOT A CONTROLLER ...later... when received in July, budgeted DWP POWER TRANSFER AUDIT RELATED ISSUE. the final, audited can decrease the PAYMENT up to JULY or charge DIRECTLY FROM THE DWP Gross principle of the NCBAs. interest from July 1, each year...like Income is TRAN. any Property Tax. reported. FINANCIAL IMPACT: $10,000,000 YES

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