Eight employees with Sacramento’s Department of Utilities were fired last year for bilking taxpayers out of $5,000 as part of a fake receipt scheme stretching at least as far back as 2009.
The details of the ruse were recently outlined in a city audit report presented to the City Council. Officials say the employees, including one supervisor, used the fake purchases to secure reimbursements for steel-toe-boots — some marked with the word “saftey” [yes, sic] — as well as other clothing items.
The fraudulent scheme came to light after three separate complaints to the city auditor’s “whistleblower hotline.” That program, first launched in 2012, received its highest number of complaints between April and September, according to a staff report.
To prevent future acts of fraud, new reimbursement protocols have been enacted. Department of Utilities Director Bill Busath said the city is now directly contracting with several safety boot vendors. Auditors have also recommended that the city’s Human Relations department work out stricter rules for reimbursements with the city’s unions.