A review of Los Angeles’ 17 job resource sites issued Friday by City Controller Ron Galperin found insufficient oversight of the sites and inadequate processes to detect fraud, waste, and/or abuse.
The review comes as three executives from Chicana Service Action Center — a nonprofit that operated one of the resource sites — are facing felony charges of conspiracy, embezzlement and misappropriation of more than $8.5 million in city and county funds in an alleged fraudulent billing scam.
The resource sites — known as WorkSource Centers — provide job training, counseling and employment referral services.
They are operated by the city’s Economic and Workforce Development Department, which has been headed by former City Councilwoman Jan Perry since 2013.
“Job seekers depend on these centers for a variety of vital services, including computer access, career counseling, job listings, and training referrals,” Galperin said. “It is our duty to make sure that service providers are compliant and that they truly are providing services for the many Angelenos seeking employment.”
Galperin’s office also evaluated EWDD’s process in selecting nonprofit service providers and found it needs to adopt best practices that would help identify unsuitable providers early on.
“It is vital that we train the workforce of the future. With fast- changing technology and new job descriptions, the work of our job centers is more important than ever,” Galperin said. It is my hope that by partnering with EWDD and implementing the recommended reforms, L.A. will better serve job seekers and employers.”
The review also made some recommendations, including a more thorough review process and oversight of service providers, better communication between city departments and regularly updated performance evaluations.
Galperin’s office said Perry supports the review, has initiated numerous new controls since 2013 and has agreed to the creation of a compliance task force, in partnership with the controller’s office, to further enhance transparency and accountability.
— City News Service