Los Angeles Controller Audit Says City Overpaid Reimbursements for Mileage

LOS ANGELES – Los Angeles’ City Controller Wendy Greuel released a new audit that says the City wasted more than $325,000 in mileage reimbursements due to overpayment and lack of oversight between fiscal years 2009 and 2012.

The report stated that the City paid an average of $4,649,000 in mileage reimbursements to employees. The report reviewed sample data from the following departments: Building and Safety; Los Angeles Housing Department; Public Works - Bureau of Contract Administration; Public Works – Bureau of Street Services; and the Department of Transportation.

Greuel’s audit found $110,000 in overpayments and that the City could have reduced related costs by $215,000. The report noted the City paid employees for non-reimbursable commuting mileage, as much as $35,000 per year. In one case, a City employee received $30,252 in mileage reimbursements between January 2009 and September 2011 but only four statements existed to support $2,156 of that amount. The report found that reports across all departments sampled had inaccurate or incomplete mileage statements. It also noted a lack of documentation of insurance and valid driver’s licenses in more than half of instances investigated.

Los Angeles City Councilman Dennis P. Zine said changes must be instituted to reduce mileage reimbursement costs. He chairs the Audits & Governmental Efficiency Committee and plans to bring the audit report before that committee.