Audit Assails Parks Dept. Record-Keeping

The city’s Recreation and Parks department could be losing “tens of millions” of dollars from its $104-million budget because of lax oversight of those city funds, according to an audit by the Los Angeles city controller released Wednesday.

“We can’t even quantify it because of the way records were kept,” said deputy controller Tim Lynch. “There are tens of millions of dollars at risk. That amount might not be misspent but . . . controls aren’t in place.”

The audit found that the department’s municipal recreation program fund and a related revolving fund expose the city to potentially the most misuse or abuse. Those funds had weak controls, inadequate supervision and even “forced” balances on the books that showed inaccurate accounting.

The audit found that the recreation program fund’s accounting section did not monitor the facilities staffs’ use of charge and credit card accounts, allowing personal purchases to be intentionally or inadvertently submitted for payment.

And, the audit found that some facilities, including Griffith Observatory, do not deposit money directly into city accounts on a timely basis. The observatory, which collected $583,000 in the 1996 fiscal year, held on to funds for a couple of days before armored truck pickups. It also allowed filmmakers to use the location without first acquiring the appropriate permits, which increases the city’s liability and decreases revenues.

Among recommendations, the audit urges more stringent oversight and documentation of accounts.