From the main site:
At a press conference to announce a new fraud hotline this morning, Pittsburgh Controller Michael Lamb heaped criticism on the mayor's administration, accusing finance department employees of mislabeling funds that came into the police bureau's special events office.
Mr. Lamb, who is running against Mayor Luke Ravenstahl, said the way the city finance department accounted for the funds may have provided the opportunity for fraud. Federal authorities are now investigating allegations that funds were misappropriated from the special events office, which organizes off-duty security jobs for police officers.
At issue is the hundreds of thousands of dollars the city is supposed to recoup in a surcharge to businesses that hire police officers through the special events office, which also is being audited by the controller's office. Businesses also get billed for officers wages, so all of that money was being accounted for in a single line item for premium pay, which is used to pay wages for officers' private security details.
It has the effect of "padding" that line item, allowing the bureau to spend more than it is allocated or providing the opportunity for undetected theft, he said.
"If someone were going to pilfer checks, it would have gone unnoticed because there was still money in those accounts," he said.