On the Lookout: Fraud, Waste and Abuse Q3 Report

2019 La Controller

Fraud, Waste and Abuse Quarterly Report

Report for the Quarter Ending September 30, 2019

Key Figures

 

FWA Activity

For the quarter beginning July 1, 2019, and ending September 30, the Fraud, Waste and Abuse (FWA) Unit received 154 new cases and closed 166 cases. As of the end of this quarter, the FWA Unit has a total of 132 open cases. The FWA Unit’s evaluation of the cases received during the quarter is summarized in the following chart.

During this quarter, the FWA Unit closed a total of 166 cases. The case closure by category is summarized in the following chart.

 

Examples of Cases Closed this Quarter

  • Employee Theft – Resulted in an employee’s resignation in lieu of termination. Case referred to LAPD for criminal investigation.
  • Misuse of Authority or Position – The investigation revealed an employee accessed and tampered with a departmental database for personal reasons. The employee was dismissed.
  • Misuse of City Equipment – An employee misused a City vehicle for personal use. Disciplinary action was taken.

Theft of time was the leading type of issue reported for cases received during the quarter which accounted for 7 of the 38 cases determined to require an investigation or additional review.

The breakdown of cases requiring investigation or review by departments and number of cases referred to departments for action are as follows:

 

FWA Metrics

This quarter, the majority of cases received were reported anonymously. Most cases were received through the Controller’s Fraud Hotline through the web intake form or hotline phone calls. A small number of additional cases were received via email, U.S. mail, or in-person.

The FWA Unit has received 409 cases for the first nine months of the year, compared to 260 cases for the first nine months in the prior year, an increase of 57 percent. The increase may be attributed to the enhanced Fraud Awareness Training deployed to all City departments and offices, combined with the FWA Unit’s outreach and in-person FWA training given to employees.

 

File A Report

Report fraud, waste, and abuse of City resources and operations by contacting the Controller’s FWA Unit.

FWA Web Intake Form:
http://www.lacontroller.org/fraud_hotline

FWA 24-7 Hotline:
(866) 428-1514

FWA Complaint by Mail:
Office of the Controller
Attention: FWA Unit
200 N. Main Street, Room 460
Los Angeles, CA 90012