DWP’s Dunning Costlier Than Amount Collected
An audit released Thursday found that the Los Angeles Department of Water and Power spent twice as much money trying to collect debts over the past five years as it brought in.
According to the audit, released by Controller Laura Chick, the city collected approximately $90,000 per year on large, delinquent DWP accounts--but at an annual cost of $136,000 to $250,000.
Inadequate tracking of delinquent accounts led to the problems, Chick found. She suggested that the city get “out of the business of bill collecting” and solicit private sector bids for collections work.
“In good times and uncertain times alike, the city must make collecting what is owed a top priority,” Chick said.
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