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A new audit finds that a Los Angeles homeless services agency with an $875 million annual budget has routinely paid service providers late, failed to track whether contracts were followed and, in some cases, gave taxpayer funds meant for other purposes to providers who weren’t supposed to receive the money.The findings released Tuesday night by the L.A.
The agency is jointly overseen by the city and county of L.A. It was established in 1993, and currently administers funding from the county, the city, the state of California and the federal government.LAHSA has repeatedly found itself in the spotlight over public frustration with rising homelessness in recent years despite billions of dollars in new voter-approved funding.
LAHSA does an inadequate job of monitoring contracts to make sure providers are complying with the terms of their funding. The auditors found that about half of LAHSA’s planned contract reviews did not include methods for monitoring a provider’s compliance with service delivery requirements. LAHSA officials were given a chance in the audit to respond to the findings. They disagreed fully or partially with most of the points above, but agreed that payments to providers were often late. For the findings they agreed with, they laid out timelines for fixing the problems.that found the city of L.A. did not spend at least $513 million in public funds that were budgeted to help with the homeless crisis during fiscal year 2024.
As for the $51 million in advances from 2017, Rachel Johnson — LAHSA’s chief of staff — said that money was meant to buoy service providers through 2027.
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