LOS ANGELES : DWP Audit Criticizes Contracting System

An audit of the Los Angeles Department of Water and Power released Wednesday found irregularities in the awarding of some contracts to outside consultants.

The audit by City Controller Rick Tuttle concluded that many of the department’s professional services contractors had not paid the required city business taxes. The audit also questioned whether the department used outside contractors when lower-cost Civil Service employees were available.

Bill Williams, DWP’s assistant chief financial officer, downplayed the findings, while Tuttle called the lack of compliance “an attitude problem at DWP.”

The report follows a controversial court settlement earlier this year that pointed to abuse in the DWP contracting system. A major review of the $550 million in outside contracts issued each year by the department is expected to begin next month.