LOS ANGELES : Council Orders Audit of Fund-Raising Program
The City Council on Wednesday ordered an audit of a city program that is designed to raise money for development in poor communities but has fallen far short of its fund-raising goals.
In fact, the City of Los Angeles Foundation has been unable to repay a $193,000 loan from the city to cover financial losses incurred from three fund-raising events it helped organize between 1987 and 1990.
Parker Anderson, general manager of the Community Development Department, which oversees the foundation, has requested that the city forgive the debt owed to the Urban Development Action Grant Revolving Loan Fund.
But the council voted unanimously to delay action on that request pending a review of the audit, to be completed within 30 days by City Controller Rick Tuttle.
“I want the audit to tell us why we should continue this program,” said Councilman Mike Hernandez, who proposed the audit.
Anderson, who suspended the foundation’s activities two years ago on grounds that they were not cost-effective, has recommended that the scope of its operations be limited to receiving unsolicited donations.
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