DWP AUDITORS OFTEN QUESTIONED P.R. BILLS.

Byline: James Nash Staff Writer

In addition to a 2002 audit that challenged more than $350,000 in bills from two public-relations consultants, DWP accountants flagged thousands of dollars of invoices after they came due - including nearly $300 for booze at a formal dinner and $5,000 to sponsor a concert.

According to e-mails and other internal documents released under a California Public Records Act request, records show that Department of Water and Power auditors repeatedly questioned bills from Fleishman-Hillard Inc. and the Lee Andrews Group, both in formal audits and in written questions to top DWP managers.

In one case, Fleishman-Hillard withdrew $288 in billings for liquor, wine and beer served at a June 2000 dinner meeting at the City Club on Bunker Hill. It was hosted by David Freeman, then the DWP's general manager, to promote his Integrated Resource Plan.

However, DWP auditors did not challenge $2,943 for food served at that dinner or another held during the two-day session to discuss the plan, which aims to replace fossil fuels with cleaner energy sources.

More than two years after the dinners, DWP auditors asked for a list of people who attended, but Fleishman-Hillard said it didn't exist.

The auditors - led by Manolo Robles, who declined to comment for this story - also questioned vague invoices for legislative consultants and other subcontractors to Fleishman-Hillard and the Lee Andrews Group.

Auditors challenged a $455 invoice from Fleishman-Hillard's United Kingdom subsidiary, which said only ``fee for work carried out.'' However, the DWP ultimately paid the bill.

Auditors also questioned a $5,000 bill from the Lee Andrews Group for a ``4 His Glory'' concert and $1,750 for a ``Kwanzaa People of Color'' event, saying the DWP should sponsor the events directly rather than through a subcontractor.

According to the internal e-mail messages and memos, DWP managers generally cooperated in providing information to their auditors.

The expenses also were defended by Doug Dowie, who headed the Fleishman-Hillard Los Angeles office before he was placed on leave in mid- 2004 amid allegations that his firm had overbilled the DWP in its $3 million-a-year contract. Dowie has declined to comment on the allegations.

``We recognize that audits such as this are a normal part of the process of contracting with a public agency like DWP and trust that we will be able to resolve this issue amicably,'' Dowie wrote to the DWP's then-chief administrative officer, Frank Salas, after a 2002 audit that challenged $300,000 in Fleishman-Hillard bills.

James Nash, [phone]

james.nash(at)dailynews.com