Council approves distribution of found funds and steps on payment reforms after audit findings

The Los Angeles City Council approved two finance items on July 27, 1999: the distribution of $49,732 found in council district four and a transfer of $8.1 million intended in part to address payment timing and procurement reforms.

On item 26, council members approved reallocating $49,732 to a set of community organizations. Leonard Shapiro questioned why the funds had remained unused and suggested more planning when unexpected funds surface. The vote was recorded as approved (12 yes).

Item 27 involved an $8.1 million transfer and follow‑up on an audit that found the city had lost approximately $800,000 by not paying certain telephone bills on time. Mr. Shapiro said the city was not always taking cash discounts and urged attention to timely payments. Mr. Wax described the action as part of a broader re‑engineering of purchasing and payment systems that could save the city millions by capturing discounts and avoiding penalties. The council approved item 27 by roll call (12 yes).

Council members characterized the actions as steps in an ongoing effort to reform purchasing and accounts‑payable processes and to ensure vendors are paid on time.