Tag Archives: Generally Accepted Auditing Standards

Los Angeles BIDs To Be Audited by the City Every Three Years According to City Clerk’s April 2016 RFQ, Published At Direction of Council. Also City to Spend $250,000 Promoting BIDs and Training BID People.

Holly Wolcott, Clerk of the City of Los Angeles
Holly Wolcott, Clerk of the City of Los Angeles
One of the advantages that zillionaires have over humans with respect to City politics is that they can hire innumerable minions to keep up with the firehose of crap spewed forth by City Hall, certainly in an effort to keep the minion-deprived majority too busy to address everything. Which is my half-serious, half-silly1 excuse for only having noticed this evening the two matters addressed in this post.

First we have Council File 14-0903, in which Holly Wolcott asked for and received an “amount not to exceed $100,000 …for a period of two years with two one-year extensions to assist with the creation and implementation and coordination of a Public Information Campaign” having to do with how fricking great BIDs are for the City of L.A. Additionally they’re getting “an amount not to exceed $150,000 … for a period of two years with two one-year extensions to assist with the creation and implementation of a capacity building and leadership training series relative to business improvement districts and create public/private partnerships with other nonprofit organizations..” None of this seems like very much money given (a) the amount of truth they’re going to have to overcome in order to achieve the first goal and (b) the amount of sheer incompetence and bloody-mindedness to achieve the second. Brace yourself for the incoming propaganda!

Second, and much more interesting, we have this Request for Qualifications, issued by the Clerk in April 2016 asking for people to submit proposals to audit BIDs. There must be a council file associated with this item, but I can’t locate it. Here’s some background. First of all, the standard contract that BIDs sign with the City allows the City to audit BIDs at will.2 This is rarely done. In fact, as far as I can tell, it has only happened twice, both times in 2005, when then-Controller Laura Chick audited both the Central City East Association and also the Westwood Village BID. The details of those audits are worth reading, although I’m not going to write about them tonight.3 However, Controller Chick made some observations then that are still relevant today:
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