A new audit from Los Angeles City Controller Laura Chick found serious lapses at the city Treasurer’s office, including accounts overdrawn by more than $50 million on two occasions.

The audit released Friday found internal disarray, backlogs and a lack of communication with other city departments after the Treasurer’s office was separated from the Office of Finance two years ago. A hiring freeze was also a factor in creating backlogs that delayed balancing of the city’s books for several months, according to the audit, conducted for Chick’s office by Palm Desert-based blueConsulting Inc.

The Treasurer’s office is responsible for managing the city’s cash receipts and disbursements, estimated at $50 billion annually. The office also oversees more than $5 billion in cash investments on behalf of the city.

The auditors concluded that many of these problems stemmed from a long-established culture within the office of not seeking to improve performance. That culture predated the arrival of new City Treasurer Joya De Foor 18 months ago, the report said.

“The audit paints a picture of a Treasurer’s Office plagued by a highly demanding management style, extreme stress, heavy workload, staff turnover and an inability to have vacancies filled in a timely and effective way,” Chick wrote in an accompanying letter sent to Mayor Antonio Villaraigosa and the City Council.

De Foor’s office referred calls to Villaraigosa’s press office.

“The mayor has asked the treasurer to submit within 30 days a corrective action plan that addresses the issues raised in the audit,” Villaraigosa spokesman Joe Ramallo said.

He said some of the problems were being addressed with the creation of a Finance Advisory Cabinet, which was announced on Oct. 3. That cabinet will facilitate communication between city departments on financial matters, Ramallo said.