This story is free to read because readers choose to support LAist. If you find value in independent local reporting, make a donation to power our newsroom today.
This archival content was originally written for and published on KPCC.org. Keep in mind that links and images may no longer work — and references may be outdated.
Pasadena begins implementing changes to prevent embezzlement
File: Pasadena City Hall on April 6, 2009.
(
Andy Castro/Flickr Creative Commons
)
Pasadena City Hall has implemented several changes to improve its oversight of public funds following the embezzlement of some $6 million from a single public works employee last year, according to a staff report released Monday.
The employee, Danny R. Wooten, allegedly created false invoices for the city's Utility Underground Program between 2004 and March 2014. The theft was discovered in May that year and eventually led to Wooten's arrest and, according to the Los Angeles Times, to two other administrators getting fired.
The city council launched three separate audits earlier this year, gathering nearly 50 recommendations on how to improve its financial oversight of the program and its accounting practices in general.
On Monday, council members listened for more than three hours as staff gave an update on some of the changes that had been made, including the hiring of additional personnel, according to Pasadena Now.
"None of us thinks there's a silver bullet that will stop future embezzlements. No one thing that we could recommend that you could adopt will stop future wrongdoers," said Doug Kranwinkle, chair of a city-appointed task force that carried out one of the audits.
That said, if all of the recommendations are adopted and with on-going controls and monitoring, another 11-year series of embezzlements by staff "simply won't happen," said Kranwinkle in an archived video of the meeting.
Following are some of the actions taken by the city that were highlighted in the staff report:
- dividing the duties of a single analyst among separate departments
- hiring an internal audit manager, contracting for a fraud risk assessment and engaging a new external auditor
- implementing a new requirement for W-9 forms from new vendors and tracking and reporting 1099s
- expanding staff training on financial management
Mayor Terry Tornek said he and the council wanted to reassure the public that changes are happening without delay and that "it won't be a 3-year timeline," Pasadena Now reports.
You come to LAist because you want independent reporting and trustworthy local information. Our newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our connected community. We are free to tell the full truth, to hold power to account without fear or favor, and to follow facts wherever they lead. Our only loyalty is to our audiences and our mission: to inform, engage, and strengthen our community.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive from readers like you will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive from readers like you will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Senior Vice President News, Editor in Chief
