Transit Agency’s Spending to Be Audited

Expressing outrage over spending by its staff, the Los Angeles County Transportation Commission on Monday ordered an immediate independent audit of the agency’s financial practices and management policies.

County Supervisor Mike Antonovich, chairman of the commission, called the agency’s spending habits cavalier and called for a range of reforms.

The commission voted unanimously to endorse a proposal by Antonovich and Los Angeles Mayor Tom Bradley under which city and county officials will jointly select three private financial managers to form an oversight panel for the agency within a week. By April 20, the panel is to draw up a proposal for hiring independent auditors.

“The credibility of the agency is at risk,” Antonovich and Bradley said in their proposal.

The Times reported last week that the LACTC, the agency in charge of building the region’s vast rapid transit system, has spent money freely in recent years for travel, meals, entertainment, automobiles and staff perks. During a recent 18-month period, bills for such items totaled at least $2.9 million.

Records obtained by The Times also showed some unusual financial practices, including issuance to staffers of more than a dozen credit cards with limits up to $10,000, a haphazard bill payment system that resulted in thousands of dollars in late fees, and a casual approach to executive expense accounting.

After inquiries from The Times, Neil Peterson, LACTC executive director, repaid the agency for $1,267 in personal charges he made on an agency credit card over 18 months. Another top official, Thomas Tanke, charged $1,588 in bicycles on an agency credit card and repaid the money six months later, when auditors traced the charges to him.

In their vote Monday, the commissioners “reconfirmed” their philosophy of “prudence and frugality, with emphasis on strict controls and maximum return of value to the taxpayers.”