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 [ ARCHIVE ](https://mail.citywatchla.com/archive)

#  ISSUE: Audits are out … DWP Nonprofits Spent Freely with Little Oversight

April 30 2015

Written by Jack Dolan.

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*![](https://mail.citywatchla.com/images/stories/Apr-2015/036z3.png)DWP trusts paid millions to vendors without competitive bids and let managers use trust-issued credit cards.

*Trusts have received more than $40 million from ratepayers.*

A controversial pair of nonprofit trusts, created by the Los Angeles Department of Water and Power and financed with more than $40 million from ratepayers, doled out millions to vendors without competitive bids and let managers use trust-issued credit cards to buy gas for their personal vehicles and travel without filing expense reports**,** according to a city audit released on Thursday.

The nonprofits, which were created in the early 2000s to promote safety and training at the massive city-owned utility, have also failed to provide any "real information on the outcomes or effectiveness" of their efforts, according to the audit by City Administrative Officer Miguel Santana. *(Here’s the rest of the* [*Times story*](http://www.latimes.com/local/lanow/la-me-ln-dwp-nonprofits-20150430-story.html)*[.](http://www.latimes.com/local/lanow/la-me-ln-dwp-nonprofits-20150430-story.html))*

*● Here is [Controller Ron Galperin’s ](https://controllerdata.lacity.org/views/ie77-c2uu/files/wE3nyRBxhBYswdaB_m7JHiWwQINaHg3myUQ1TUflZkg?filename=JTI%20JSI%20FINAL%20AUDIT.pdf)*[*audit.*](https://controllerdata.lacity.org/views/ie77-c2uu/files/wE3nyRBxhBYswdaB_m7JHiWwQINaHg3myUQ1TUflZkg?filename=JTI%20JSI%20FINAL%20AUDIT.pdf)*[ ](https://controllerdata.lacity.org/views/ie77-c2uu/files/wE3nyRBxhBYswdaB_m7JHiWwQINaHg3myUQ1TUflZkg?filename=JTI%20JSI%20FINAL%20AUDIT.pdf)* [ ](https://mail.citywatchla.com/stories/misc/AUDIT.pdf)

[](https://mail.citywatchla.com/stories/misc/AUDIT.pdf)

CityWatch

Vol 13 Issue 36

Pub: May 1, 2015

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