CITY GASOLINE CARDS 'LEAKING' EXTRAS CHARGED, AUDITORS DISCOVER.

Byline: Alexa Haussler Staff Writer

Los Angeles city officials have failed to monitor use of city-issued fuel cards, allowing at least $30,000 in inappropriate charges, according to an audit released Thursday.

A small sampling of the city's 1,000 fuel cards found $30,000 in charges labeled ``miscellaneous,'' according to the audit from the Controller's Office.

``Good controls over this program are important if the city is to protect itself against abuses, such as employees' using gas cards for inappropriate expenses,'' James Armstrong, director of auditing, wrote in a letter to General Services Department officials.

The review also found $1,000 in questionable or unallowable charges, including one card with three miscellaneous charges - two for $341.09 each and one for $81.95 - with no explanations provided.

An assistant general manager in one agency made three charges totaling $116, reportedly to have a vehicle cleaned, auditors found. On a second card, an $81.19 transaction was for a food purchase, not allowed under city ethics rules governing use of fuel cards.

The city established the fuel card program in 1998, when Los Angeles closed many of its city-run fuel sites that fell short of federal environmental standards.

City officials issued about 2,000 cards have pared the number to 1,000 and expect further reductions as environmentally upgraded city-run fuel pumps reopen.

In a written response, the head of the General Services Department, Jon Kirk Mukri, said the audit's findings will be heeded.

``We found that the audit was fair and accurate, and we are doing everything possible to implement those recommendations,'' said Robert Jensen, the department's assistant general manager.

The department also will launch monthly reviews of transaction statements and note in guidelines that misuse of cards can result in disciplinary action. The department also will shift to controls allowing purchases of nothing but fuel on a fuel card.

Auditors also found:

--The Department of General Services does not have accurate data on some fuel cards.

--In some instances, city employees used the gas cards to buy premium gasoline and failed to attempt to use city tanks before going to private gas stations, which cost taxpayers about 20 to 30 cents more per gallon.

--The General Services Department did not discontinue service from a gasoline station that repeatedly miscoded purchases.

Mayor Richard Riordan issued a letter Nov. 15 ordering city department managers to review employee card use.