"Shoddy fiscal management and sub-par oversight of a project of this magnitude will undermine the public's trust and threaten billions of public dollars," said State Controller John Chiang.
The three bond measures: Measure J, Proposition A and Proposition AA increased average household taxes within the district an average of $123. The district also received $214 million from state bond funds. The audit found that the district misused $42.64 million in Measure J funds by using them to complete old projects that supposed to be finished under other propositions, constructing unapproved buildings and not constructing approved buildings. The district also did not provide adequate oversight according to the audit causing $28.3 million to be spent on projects that were canceled before completion.
"The audit also identified district-wide costs that were inappropriately charged to the bond funds, including $2 million for copying and binding; $1.5 million for public relations, tours and special events; and $1.5 million for photography," according to a press release. Public records show that the citizen oversight committee was passive, perfunctory and ineffective, according to a press release.
The head committee failed to issue any report for seven years while the latest meeting was found to be virtually meaningless and gave no evidence that the board had examined money spent from the bond. The audit stated that while the LACCD has spent more than $2.75 billion in its construction program, it has done so without a master plan.