City of Long Beach is committed to ensuring transparency and accountability in the use of taxpayer dollars. To achieve this, the Long Beach City Auditor’s Office has established a Fraud Hotline that allows anyone, including City employees, vendors, business owners, and citizens, to confidentially report tips of fraud, waste, or abuse against the City.
The Value of the Fraud Hotline
According to the Association of Certified Fraud Examiners, tips are the most common source for detecting fraud. The Fraud Hotline plays a crucial role in deterring, detecting, and disclosing fraud within the City of Long Beach. In 2023 alone, the Long Beach City Auditor’s Office investigated and closed 51 cases that were reported through the Fraud Hotline. Out of these cases, seven had substantiated elements of City fraud, waste, and abuse.
The significance of the Fraud Hotline lies in its ability to empower individuals to report suspicious activities easily and confidentially. By encouraging anyone who suspects fraud to report detailed tips, the City Auditor’s Office can take prompt action to address potential issues and protect taxpayer dollars.
Notable Cases Uncovered Through the Fraud Hotline
Parking Meter Coin Collection
One of the impactful cases uncovered through the Fraud Hotline involved the poor cash handling controls for collecting parking meter coin revenue. The Office discovered that approximately $1 million in parking meter coin revenue was being mishandled due to inadequate controls. To rectify the situation, the Office issued recommendations such as implementing segregation of duties and providing proper cash handling training to ensure the security of parking meter coin operations.
Queen Mary Funds Misuse
Another significant case brought to light through the Fraud Hotline was the misuse of City funds allocated for urgent repairs to the iconic Queen Mary. The review conducted by the City Auditor’s Office revealed that $23 million in City funds given to Urban Commons, the management company, was not spent as intended. It was discovered that repair work was subcontracted out, resulting in excessive markups and $1.1 million in management fees that were not part of the agreement. This case prompted the City to reevaluate its contract and payment processes to prevent similar occurrences in the future.
Park Maintenance Shortfall
Through the Fraud Hotline, the City Auditor’s Office uncovered a $1 million annual shortfall in the Parks budget for park and park tree maintenance. As the City continued to expand its parks without effectively managing resources, the budget allocation fell short. Following the recommendations made by the Office, the Parks, Recreation, and Marine Department received an increase of up to $710,000 annually to address the maintenance needs of parks and park trees.
Emergency Dispatcher Overtime
The Fraud Hotline also exposed excessive overtime being worked by 9-1-1 dispatchers, leading to serious financial implications and potential risks to public safety. The Office discovered that dispatchers were working up to nearly 100% of their salaries in overtime, resulting in a cost of $1.3 million. This excessive overtime not only strained the City’s budget but also posed a risk of dispatcher fatigue. The City Auditor’s Office recommended a review of emergency dispatcher staffing levels and schedules, as well as the distribution of overtime within the dispatcher workforce.
“If something doesn’t add up, sound right or feel right, it’s probably not right. We encourage anyone who suspects fraud to report the detailed tip to the City Auditor’s Fraud Hotline.” said City Auditor Laura Doud.
Reporting Tips to the Fraud Hotline
If you suspect fraud, waste, or abuse within the City of Long Beach, reporting it to the Fraud Hotline is simple and confidential. There are three ways to make a report:
- Phone: Call 1-888-FRAUD-07 (1-888-372-8307) to report your tip.
- Online Form: Fill out the online form at CityAuditorLauraDoud.com to submit your detailed tip.
- MyAuditor App: Download the MyAuditor App from the App Store or Google Play to report your tip conveniently.
The City Auditor’s Office emphasizes the importance of reporting any suspicious activities that don’t add up, sound right, or feel right. By working together, we can protect taxpayer dollars and ensure the integrity of City operations.
The Long Beach City Auditor’s Fraud Hotline plays a critical role in deterring, detecting, and disclosing fraud, waste, and abuse within the City of Long Beach. Through the tips received via the Fraud Hotline, the City Auditor’s Office has successfully investigated and closed numerous cases, resulting in corrective action recommendations to City departments and the protection of taxpayer dollars. By encouraging individuals to report any suspicions, the City of Long Beach is committed to maintaining transparency, accountability, and the efficient use of public funds.
