AHF Overbilled L.A. County by $3.5M, Audit Says

Aug 6, 2014 4:15 PM PST

WEST HOLLYWOOD, Calif. — The AIDS Healthcare Foundation, sponsor of Measure B and AB 1576, has overbilled Los Angeles County by millions for reimbursed AIDS health funding, according to a letter prepared by the county auditor.

The auditor's letter, sent to the county Board of Supervisors last week, recommends that AHF repay $3,558,080 and be added to the county’s Contractor Alert Reporting Database to track poorly performing contractors.

The letter stated that questioned costs were for the years 2011-13.

News of the audit that resulted in a recommendation of a multimillion-dollar reimbursement was first reported by FrontiersLA.com.

Frontiers said that the AHF believes the audit was conducted in retaliation for criticism of the county, which would include a previous lawsuit against its supervisors.

"In their formal response, AHF said the audit corresponded with public criticism of the county’s handling of risk of sexually transmitted diseases in the adult film industry and unlawful practice of awarding contracts without public bidding," Frontiers said.

AHF has sponsored several measures to regulate the adult entertainment industry through ordinances mandating condoms and testing for performers. Measure B, and related laws, are in effect in the city and county of Los Angeles and parts of Ventura County. The organization also sponsored AB 1576, a similar statewide measure that is pending in the state's Legislature.

Frontiers also noted that Los Angeles County isn't the only California municipality AHF is in conflict with.

AHF also recently issued a lawsuit against the City and County of San Francisco and San Francisco City Supervisor Scott Wiener, claiming a change in zoning laws violates the nonprofit’s equal protection over its proposed pharmacy.


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