Audit Reveals Lax Accounting Procedures at Los Angeles Homeless Services Authority
An audit of the Los Angeles Homeless Services Authority (LAHSA) has found that lax accounting procedures resulted in the failure to reclaim millions of dollars in cash advances to contractors and to pay other contractors on time, even when funds were available.
Findings of the Audit
The audit, conducted by the county Auditor-Controller Oscar Valdez, found that LAHSA failed to establish formal agreements on how and when advances should be repaid, did not always maintain records for capital advances, and could not provide an accurate list of all contracts and their execution dates.
The audit also found that LAHSA had recovered only $2.5 million of $50.8 million in Measure H funds advanced in the 2017-18 fiscal year and, as of July, had $8 million still outstanding from advances from county, city, and state programs made from 2016 through 2023.
Understated Contract Awards and Lack of Supporting Documentation
In a sample of contracts, the auditors found that LAHSA understated the amounts awarded to two recipients by $505,591 and lacked supporting documentation for approximately $5 million advanced to five recipients.
Reaction to the Audit
Los Angeles County Supervisor Lindsey Horvath issued a statement calling for a new county department to consolidate homelessness contracting within the county, citing the urgent need for greater accountability in the homeless services system.
LAHSA officials pushed back on several of the findings, stating that most of the issues related to activities of prior administrations and that they were already working to fix the accounting issues.
Conclusion
The audit highlights the need for greater accountability and transparency in the homeless services system. While LAHSA officials have acknowledged the issues and are working to address them, the lack of formal agreements and accurate records raises concerns about the effective use of public funds.
FAQs
Q: What was the purpose of the audit?
A: The audit was conducted to evaluate the accounting procedures and practices of the Los Angeles Homeless Services Authority (LAHSA).
Q: What were the findings of the audit?
A: The audit found that LAHSA failed to establish formal agreements on how and when advances should be repaid, did not always maintain records for capital advances, and could not provide an accurate list of all contracts and their execution dates.
Q: How much money is still outstanding from advances?
A: As of July, LAHSA had $8 million still outstanding from advances from county, city, and state programs made from 2016 through 2023.
Q: What is the reaction of LAHSA officials to the audit?
A: LAHSA officials have acknowledged the issues and are working to address them, stating that most of the issues related to activities of prior administrations.
Q: What is the proposed solution to the issues raised in the audit?
A: Los Angeles County Supervisor Lindsey Horvath has proposed the creation of a new county department to consolidate homelessness contracting within the county, citing the urgent need for greater accountability in the homeless services system.
