Los Angeles Nonprofit Utility Has $40 million Problem

The Los Angeles Department of Water and Power (DWP) has done little to change practices at two utility nonprofits accused by auditors of “cavalier” spending after receiving more than $40 million in ratepayer money, even though they promised reforms months ago, reports the LATimes. 

One administrator charged more than $30,000 in gas and carwashes on his nonprofit-issued credit card between 2010 and 2014, auditors found. 

Another charged more than $660,000 for things such as steak dinners and trips to Las Vegas, Hawaii and New Orleans, recommended much stricter travel policies and controls on credit card spending. 

City leaders had almost no idea what had been done with the $40 million.

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