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)

$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


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.


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


Audit

#61

10/14/11-CONVENTION CENTER PARKING REVENUES & EXPENSES - no Council File

LA Convention Center

responded,

satisfactorily

NO "REAL" DATA

PROVIDEDController is SATISFIED


1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #2 of 8 pagesa.

Support and implement in a

timely way the



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


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


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


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


Audit

#5403/03/11 - AUDIT - LADWP use of ARRA Funds

This does NOT

IMPACT CITY

BUDGET.

(Genl Fund)



Audit

#5301/14/11 - AUDIT - Treasurer & City Funds as of June 30, 2010

NO "REAL" DATA



1.00 EFFICIENCY RECOMMENDATIONS - CONTROLLER AUDITS - page #3 of 8 pages

a. Support and implement in a

timely way 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



Audit

#51

01/14/11 - AUDIT - CAO's Oversight of ARRA Processes by the Office of Finance



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)



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.


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


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.



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


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.



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.


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



… BUT …


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



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



… BUT …


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.


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.



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.


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.


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.



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.


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



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


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.


YES

neighborhood council budget advocates white paper 2 - 2012

Travel

citys billing techniques

oof collections policies

citys billing

negotiate specific funds

emergency medical services

fund billings

controllers recommendation

property tax