Private agencies diverting
millions
Audits find parties,
vacations, more
By Troy
Staff Writer
Since 1998, county auditors
have found more than $9 million in unallowable or questionable expenses by the
private foster-care agencies that have contracts with
The audits revealed taxpayer
funds were used to pay off
"They have abused both
children and taxpayers," said Jon Coupal,
president of the Howard Jarvis Taxpayers Association. "Particularly in
these tough economic times, the fact that money is being misspent this way is
absolutely appalling. Local governments are screaming for more revenues, yet
they are grossly misspending these funds, frittering away this money without
any accountability at all."
Supervisor Michael D. Antonovich said the county should be reimbursed for those
misappropriated funds.
"There is no excuse for
using money intended for foster children to cremate one's father-in-law or to
use those funds at
Some of the executives of
the private foster care agencies that oversee the children receive up to
$310,000 a year in salaries and benefits, enjoy extravagant lifestyles and
drive luxury cars provided to them at public expense, the county audits reveal.
Some directors of
foster-family agencies and group homes drive around in head-turning vehicles
Jaguars, a Land Rover, a Cadillac Escalade SUV, Mercedes and Lexus provided to
them at public expense, according to the audits.
One official billed the
taxpayers more than $12,000 for membership dues and a banquet party at the
"I think it suggests
Department of Children and
Family Services Director David Sanders, who earns $175,000 a year and is among
the nation's highest-paid public child welfare agency directors, said taxpayer dollars should be spent ensuring the safety of children.
"When we have that kind
of credibility issue, it's little wonder people can
raise questions about our ability to get the work done," said Sanders, who
took over the department in March. Since 1985, the four previous DCFS directors
have resigned under pressure from top county officials.
As private foster care
agencies made millions of dollars off the children under their care, critics
say the Board of Supervisors looked the other way. From 1995 to 2002, foster
family agencies, group homes and others spent more than $262,000 lobbying and
making campaign contributions to the supervisors, including more than $67,000
in campaign contributions.
"I think it's clear
that foster care has become an industry in some parts of
Troy Anderson, (213)974-8985
[email protected]
MISUSED FUNDS
The group homes and foster family agencies that care for most of Los Angeles
County's foster children have misused more than $9 million in taxpayer funds
since 1998, paying off debts at Las Vegas casinos, buying lingerie and even
paying for the cremation of an executive's father-in-law, county audits reveal.
Based on the audits, the
Department of Children and Family Services reviewed $6 million of the
unallowable and questionable costs from March 1998 to May 2001 and required the
agencies to pay back $1.5 million. So far, the department has received about
$600,000.
Here are examples of the
disallowed spending:
Group home directors paid
$4,500 in debts at two
Foster family agency
directors bought $1,814 worth of lingerie and racked up $6,113 on 116 restaurant
meals, even sticking taxpayers with the tab for their alcoholic beverages.
An agency director spent
$774 to cremate his father-in-law.
Officials spent $12,247 for
a membership at the Beverly Hills Country Club and a $6,013 banquet party for
150 employees.
Agency officials spent
$57,379 on legal fees and to settle sexual harassment lawsuits by three former
employees.
Directors purchased or
leased two Jaguars, a Range Rover, Mercedes, Lexus, Ford Expedition, GMC Suburban
SUV and a Cadillac Escalade SUV, which cost $1,083 a month to lease.
An official made $4,715 in
credit card charges for various unidentified items during trips to the
Auditors found agency
executives purchased $3,800 worth of pantyhose, razors, suits, shoes, pet
supplies and jewelry and beauty supplies in
Officials billed the county
$2,950 a month for a child who had left the facility four years before,
collecting a total of $35,400.
Payments
for a president's 1998 Land Rover and credit card charges for trips to
The audits showed the
agencies seemingly missed no opportunity to bill the taxpayers for personal
items, no matter how trifling. One audit noted $152 was spent on cigarettes,
liquor, pet food and a church donation