Audit Discloses Possible Theft of LAPD Funds : Police: Controller refuses to give details, but a source says inquiry centers on missing $5,000. The city requests an investigation by the district attorney.

A financial audit of the Los Angeles Police Department has uncovered possible misappropriation of public funds, and city auditors Wednesday requested an investigation by the district attorney.

Saying that he was acting on advice from the city attorney’s office, City Controller Rick Tuttle declined to make public his office’s findings--including how much money is involved and what LAPD operations are the targets of the inquiry. But a City Hall source said the inquiry centers around the alleged theft of $5,000 by a now-retired police officer.

An LAPD spokesman would only say that an internal investigation is under way.

“It involves personnel matters and possibly criminal matters,” said Lt. John Dunkin.

“Sloppy books isn’t what we’re talking about here,” said Tim Lynch, an aide to Tuttle.

Tuttle on Wednesday released 12 pages of a financial audit of the LAPD, but withheld five additional pages that were forwarded to the district attorney and Police Department.

But he did list a number of recommendations that could provide insight into the inquiry, including one that the LAPD “ensure there are internal controls to safeguard against defalcations (embezzlements) and other irregularities.”

The report was the result of a routine audit last February by a team of city auditors who conducted surprise inspections of cash accounts maintained by the LAPD.

“Our audit of cash on hand and items held for safekeeping disclosed several deficiencies that the LAPD needs to address with corrective actions,” the reports says.

The audit recommended that the Police Department determine “the extent that unaccounted for advances were the result of illegal activities,” saying it “should take appropriate actions.” Auditors also urged LAPD management to “determine the validity of expenses we were not able to verify.”

A district attorney’s spokeswoman said the report was being reviewed to determine if an investigation is warranted.