Limited Scope Fiscal Audit at the Los Angeles Police Department
The Controller’s Office conducted a limited scope audit of fiscal controls at the Los Angeles Police Department (LAPD). We conducted a limited payroll review, which entailed an analysis of hours worked, overtime and bonuses paid to a sample of LAPD civilian and sworn employees for a two-week period to ensure payments were properly supported. We also conducted a review of select bank accounts managed by your Department that are not controlled by the City Treasurer, and surprise cash counts at two locations, along with a review of controls related to those funds.
We found no issues with the Department’s payroll activities, as hours worked and bonuses paid to sampled employees were properly supported. We identified no significant cash shortages or overages, and transactions were properly authorized; however, the Fiscal Operations Division should provide stronger oversight and guidance of LAPD’s external bank accounts that are not controlled by the Office of Finance/City Treasurer.
We provided a draft report to LAPD on January 11, 2018, and met with Department representatives on February 28, 2018. LAPD provided their formal response and action plan on March 23, 2018, which is attached to this report. Management indicated agreement with five of the seven recommendations, and we now consider Recommendations 1.2, 2.1, 2.2, 4.1 and 5.1 as Implemented. LAPD management disagreed with Recommendations 1.1 and 3.1 and consider the Department’s current practices as providing sufficient internal controls. In lieu of implementing these recommendations, management should ensure there is sufficient oversight of the Pre-Seizure Fund and Inmate Welfare Fund accounts to protect these funds from loss and ensure proper use of the funds.
We appreciate the cooperation and assistance provided by LAPD management and staff during our audit.
Observations & Recommendations
We conducted a payroll observation and testwork to validate the overtime hours worked, additional pay, and bonuses paid to 20 employees (18 sworn and 2 civilian staff) assigned to the Southeast Division. Our review sought to ensure that payees were valid and current employees, and that all overtime hours, additional pay, and bonuses were properly supported and approved by supervisors. Employees in the sample received overtime premium pay; underwater dive, marksmanship, and POST bonuses; acting pay adjustments; and uniform allowance(s). We found all payments were authorized and properly supported.