AUDIT: ANIMAL SERVICES BIG LOSER CHICK: $3.2 MILLION IN FINES, FEES COULD BOOST OFFICE'S REVENUE.

Byline: Rick Orlov

Staff Writer

Los Angeles' Department of Animal Services is losing millions of dollars in potential revenue because of lax dog-licensing, fine collection and financial procedures, according to an audit released Tuesday by the City Controller's Office.

In a sharp rebuke to the department, Controller Laura Chick estimated that the department is losing $600,000 to $1.2million a year by failing to aggressively ensure that dogs in the city are licensed. Chick estimated that the agency has lost an additional $2million in uncollected fines.

"What my audit has found is a department struggling to move forward," Chick said at a City Hall news conference in the first of a series of new reviews of animal-service operations planned for this year.

"The largest source of revenue for the department is dog-license fees and, yet, the department tells us that it is not their top priority."

There are 123,000 licensed dogs in the city, she said, but estimates show there are 400,000 to 800,000 unlicensed animals.

Dog licenses cost $15 for altered pets and $100 for unaltered animals.

While the fines represent just 5percent of the department's $21.1million budget, Chick said it would equal about half the savings being asked of each city department this year.

Historically, Animal Services has been among the most difficult agency to run amid high management turnover. It has had five general managers in the past seven years.

General Manager Ed Boks, who has been on the job two years, said he welcomed the audit's findings.

"Over the past 21/2 years, my management team has been systematically identifying and working to correct many deeply entrenched practices," Boks said.

"This audit provides the confirmation that we are on the right track and is a valuable tool to help us continue transforming L.A. Animal Services."

Councilman Bill Rosendahl, who has been pushing the department for more than two years to step up its licensing efforts, said he plans to review the audit.

"There is no excuse for us to have so many unlicensed dogs out there," Rosendahl said. "We should look at everything we can to remind people of their obligation.

"I think we should ask the Boy Scouts to get involved or hire high school kids to help us go door to door and ask people if they have their dog licenses."

Chick said she is concerned with some purchasing and contracting procedures, including the 2006 purchase of two X-ray machines for $150,000 that are still in storage.

Chick said the agency has delayed installation so long that it now will have to spend additional money to have the machines set up. Her audit also found that it was charged improperly for shipping costs.

Chick said she also found a lack of documentation for the use of city-issued credit cards for purchases.

The Controller's Office is looking at several other operations in Animal Services this year.

As the agency prepares to enact a mandatory spay/neuter program for all cats and dogs over the age of 6 months later this year, Chick said she wants to examine how well the existing program works.

"I think before we expand the operation, we ought to take a look at how we're working now and see if any improvements can be made," Chick said.

She also is looking at the construction of new animal shelters to determine whether proper guidelines were followed.

Chick said she is looking at the new East Valley shelter, for example, where complaints surfaced during the last major rainstorm about flooding and whether new shelters are being constructed properly.

rick.orlov(at)dailynews.com

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