Los Angeles Discovers $42 Million in Overlooked Account
The Los Angeles Department of Transportation blamed accounting errors for a newly revealed bank account containing $42.6 million dollars. The account has been growing, unnoticed, for 17 years.
Word of the account broke this week in a report released by the LA DOT. City Councilman Paul Krekorian told CBS LA that he was stunned by the revelation "I just find is shocking that for a decade and a half an accounting error
could happen every year without anyone ever picking it up."
Krekorian added "These past few years have been some of the worst years in the history of
the city in terms of providing services to our constituents in the wake
of the Great Recession, and it sure would have been much easier if we
had this $42 million." He blames the mismanagement on the LA DOT.
However, LA City Controller Wendy Greuel blames the city council, saying "As Controller, I have been concerned about the lack of accountability in
the city’s Special Revenue Funds and have raised this issue repeatedly."
The nearly $43 million was transferred into the LA general fund this week.