First 5 LA gets blasted for crappy accounting
Can I say "crappy"? Yes, I believe I can. And did. Apparently, First 5 Los Angeles has accumulated $800 million of taxpayer money that they're sitting on. They apparently spend $180 million per year but can't quite spend the whole amount they get ... so it sits in the bank. THAT'S OUR MONEY PEOPLE!
"An audit by Harvey M. Rose of San Francisco found First 5 LA's commission was unable to monitor money that was being spent "since monthly programmatic expenditures are not presented relative to a budget." Auditors also concluded the agency was overstaffed while under-spending on programs for children."
UNABLE TO MONITOR MONEY? That is synonymous with "crappy accounting"
"An audit by Harvey M. Rose of San Francisco found First 5 LA's commission was unable to monitor money that was being spent "since monthly programmatic expenditures are not presented relative to a budget." Auditors also concluded the agency was overstaffed while under-spending on programs for children."
UNABLE TO MONITOR MONEY? That is synonymous with "crappy accounting"
Labels: audit, Corruption, crappy accounting, financial fraud, internal control systems, non-profit, non-profit fraud, nonprofit
posted by Kim J. Onisko MA, CPA, ABV, CFF, Cr.FA at
1:24 PM
4 Comments:
Why don't you do your full research before making erroneous statements. First of all, the only tax payer money used are smoker tax payers. Second, supervisor Zev didn't give you all the details of this "special audit.". "Sitting" on $800 million doesn't tell the whole story. Prop 10 requires by law that First 5 maintain $200 million in a trust fund that can't be spent so that brings you down to $600 million of which $180million is committed yearly to contractors and grandees. Did Zev tell you that their self serving appointed commissioners created a policy that awardees can get their money by monthly reimbursements? That means that the money being unspent are committed dollars that eventually will leave the coffers of the agency!!!
This is just politics at it's worst. The auditing firm hired was a sole source contract initiated by antonovich and commissioner Jonathan fielding. Actually Fielding and the CEO of the consulting firm are close colleagues and friends. Dont you find that fishy? Also, not one auditor that conducted the audit was a CPA to even be able to provide sound judgment of the agency's finances. Interestingly enough, supervisor Zev failed to even mention the other auditing firm that conducted it's own audit and also found no malsafaence or mismanaging of funds. These supervisors especially Zev, antonovich and now Ridley Thomas ought to be ashamed of themselves for playing dirty politics on the backs of families and children! A full investigation should happen so that the real truth comes out. A full and thorough investigation will uncover all the sole sourcing of contracts that county supervisors and their staff shoved down the throats of first 5 staff. Every dollar is accounted for and supervisors know very well that they have micro managed that staff to the ground and they now point the finger at staff for accomodatimg their every funding request?! Take a look at meeting minutes and you'll see how commissioners purposely approved moneys for pet projects and gave staff authority to negotiate contracts without their approval. This was an intentional set up to later say that staff is to blame for what they paint as "questionable" grants!
ditto!
The First 5 problems are not new - First 5 is a bad law that is structurally set up to allow self dealing to the Commissioners. I would argue that the First 5 law itself violates the conflict of interest laws. Check out my facebook page and Notes to see more of what's really been going on in this organization. 20+ negative newspaper articles can't be wrong.
http://www.facebook.com/note.php?note_id=102984666452249
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