Los Angeles Municipal Code § 20.60 Purpose of the Controller’s Fraud, Waste and Abuse Unit

The purpose of the Fraud, Waste and Abuse Unit (Unit) in the Controller’s Office is to identify and prevent losses of City funds and resources and to act as a deterrent to fraud, waste and abuse. The activities of the Unit are subject to budgetary constraints and the management discretion of the Controller.

SECTION HISTORY

Article and Sec. Added by Ord. No. 179,871, Eff. 6-29-08.

The Unit may receive complaints and allegations from any department, office or employee of the City, or from any member of the public. Any person providing a complaint or allegation to the Unit may do so anonymously. In addition, the Controller’s Office may initiate an investigation into potential fraud, waste or abuse on its own initiative.

SECTION HISTORY

Article and Sec. Added by Ord. No. 179,871, Eff. 6-29-08.

The Unit will examine complaints and allegations received, or initiated by the Controller’s Office, and classify them into four general categories, including: (1) no action required; (2) refer to the Controller’s Audit Division or other appropriate division of the Controller’s Office; (3) refer to another agency for investigation or other action; and (4) designate for further investigation by the Unit. The Unit will establish regular liaison meetings as necessary with other agencies and departments of the City, including meetings at least monthly or as otherwise agreed with the City Ethics Commission and the Police Department, to facilitate cooperation and referrals between the Unit and other agencies and departments, and to review complaints and allegations received or initiated by the Controller’s Office after the previous meeting.

SECTION HISTORY

Article and Sec. Added by Ord. No. 179,871, Eff. 6-29-08.

The Unit has no independent law enforcement authority. However, after referral to an appropriate agency with law enforcement authority, the Unit may provide assistance, upon request, to the agency receiving the referral.

SECTION HISTORY

Article and Sec. Added by Ord. No. 179,871, Eff. 6-29-08.

Except as prohibited by applicable law, City departments and appointed offices are required to report matters involving potential fraud, waste, or abuse within 10 days of discovery of the information that reasonably indicates that the matter involves fraud, waste or abuse. City departments shall concurrently report the information to the Unit and the Ethics Commission for investigation or appropriate action.

For purposes of this Section, the following definitions apply:

Abuse: The improper use of City resources in a manner contrary to law or City policy or the improper use of one’s position for private gain or advantage for themselves or any other person where not otherwise lawful.

Fraud: Any intentional act or omission designed to deprive the City of its resources to which the individual or person is not entitled, including but not limited to making false statements or submitting false documents, withholding or misrepresenting material facts, bribery, or unauthorized disclosure of confidential procurement documents.

Waste: The extravagant or excessive expenditure of City funds above and beyond the level that is reasonably required to meet the needs of the City or the consumption or use of City resources that is not knowingly authorized.

SECTION HISTORY

Added by Ord. No. 182,478, Eff. 4-17-13.

City departments and other entities are expected to cooperate with the Unit when requested to do so. This cooperation may take the form of responding to information requests or providing staff support to the Unit on a limited basis as the needs and legal restrictions of City departments and other entities allow. Staff providing support to the Unit shall treat all information concerning Unit investigations as confidential.

SECTION HISTORY

Article and Sec. Added by Ord. No. 179,871, Eff. 6-29-08.

Amended by: Renumbered and amended, Ord. No. 182,478, Eff. 4-17-13.

All ful--time City employees must participate in Fraud Awareness Training sponsored by the Unit and provided by the Personnel Department with the assistance of the Information Technology Agency, Ethics Commission, and City Attorney, and to coincide, to the extent possible, with the City’s mandatory ethics training. Failure to complete the training as required shall subject those employees to possible enforcement as further provided in the Governmental Ethics Ordinance.

SECTION HISTORY

Added by Ord. No. 182,478, Eff. 4-17-13.

At the Controller’s discretion, the Unit may operate a telephonic hotline to receive complaints and allegations of fraud, waste and abuse.

Callers to the hotline shall be offered the option of reporting anonymously. The Unit may also provide email, web-based, or other electronic methods of reporting complaints and allegations, provided these include an option for remaining anonymous.

The fraud, waste and abuse hotline may not be promoted or operated in a manner that would interfere with or create confusion regarding the role of the City Ethics Commission’s whistleblower hotline, which was established by Charter Section 702(g) to address complaints and allegations related to campaign finance, lobbying, governmental ethics and conflicts of interest. Complaints and allegations examined by the Unit that upon receipt or after investigation has begun appear to fall within the jurisdiction of the Ethics Commission shall be referred to the Ethics Commission without undue delay after discovery of that fact.

SECTION HISTORY

Article and Sec. Added by Ord. No. 179,871, Eff. 6-29-08.

Amended by: Renumbered, Ord. No. 182,478, Eff. 4-17-13.

Investigations conducted by the Unit shall be confidential. Information regarding Unit investigations may not be disclosed except as necessary to conduct investigations or as required by law. Notwithstanding the confidential nature of Unit investigations, the Unit shall release relevant information as necessary to carry out referrals to other agencies for appropriate action, and may release aggregated or summary information for reporting purposes.

SECTION HISTORY

Article and Sec. Added by Ord. No. 179,871, Eff. 6-29-08.

Amended by: Renumbered, Ord. No. 182,478, Eff. 4-17-13.