County Seeks First 5 LA Takeover

In a 4-1 vote on Tuesday, the Board ordered county counsel to prepare a proposed amendment that would establish First 5 LA as an "agency of the County with independent authority over the strategic plan and the local trust fund." County staff was directed to return to the Board in 30 days with the proposed amendment and a transition process. The Board will consider the amendment at a future meeting.

The vote came on the heels of a presentation by Harvey M. Rose and Associates, a private firm hired by First 5 LA to audit the agency's adherence to our administrative and programmatic policies and procedures. The First 5 LA Commissioners unanimously authorized the audit after Gov. Jerry Brown threatened to divert half of the tobacco-tax revenue that funds Proposition 10's early childhood education, health and safety programs. (First 5 LA and other county commissions sued the state after legislators voted to re-direct the revenue.)

The audit resulted in no findings of malfeasance, misappropriation of funds or gross mismanagement. However, some assertions by the auditors prompted the Board's action, including inconsistencies in how contracts are approved and managed, under-spending of available resources and delays in program implementation.

First 5 LA Chief Executive Officer Evelyn V. Martinez said the audit required hundreds of hours of work by staffers to provide information and records, and the findings were not significant. "While I welcome any scrutiny of First 5 LA's financial records, policies and procedures, administrative expenses and programmatic decisions, I hope that the lack of any significant findings in the special audit reports will confirm that First 5 LA takes its fiduciary responsibilities seriously and has been a responsible caretaker of the public funds entrusted to it," Martinez said.

She acknowledged that the Board has the right to exert more control, but added, "I hope that we continue to maintain our focus on improving the lives of our youngest children."

During a heated debate at the Hall of Administration, Supervisor Zev Yaroslavsky said the audit "should shock" the Board.

Supervisor Michael Antonovich, who requested the Commission authorize the audit, said the Board must ensure First 5 LA's "fiscal transparency and operational efficiency." He added: "To accomplish both, this board must consider making First 5 LA a county agency."

Supervisor Gloria Molina, the lone dissenter and immediate past chair of the Commission, accused her colleagues of staging a "takeover."

"I don't see where $1 was stolen, $1 was misappropriated," she added.

At this time, it is unknown how this action will affect staff, program or grantees.

City News Service contributed to this report.

Further Reading:

City News Service (via the Daily Breeze)

Los Angeles Times

<<Back to this week's Monday Morning Report.