LOS ANGELES : Foundation Spent More Than It Raised, Audit Finds

The suspended Los Angeles Foundation operated at a net loss of $100,000 and kept incomplete records and receipts, according to a report released Thursday by the city controller’s office. The foundation, which ceased fund-raising efforts two years ago, spent $347,000 over five years to raise money for the city’s Human Services Program, but it brought in only $246,000, auditors who compiled the report found.

Foundation officials also “did not maintain complete records of receipts and inventory of unsold, donated items, inventory of unsold event tickets, interview notes and criteria in the selection of fund-raising contractors,” the report stated.

The nonprofit organization helped sponsor “A Salute to the Great American Family” festival at the Hollywood Bowl in 1987, and the 1989 and 1990 Los Angeles marathons.

The general manager of the Community Development Department halted the foundation’s fund-raising activities because of the drain on city resources. In August, the City Council requested the audit to determine if the foundation had been run efficiently.