How Financial Missteps and Systemic Inefficiencies Are Driving Calls for Reform at LAHSA
Just before Thanksgiving, the Los Angeles County auditor-controller published an audit report highlighting several issues with the Los Angeles Homeless Services Authority. This report results from a long struggle with city officials for transparency surrounding its homelessness sector.
As a result, city and county officials are calling for changes, including moving all homeless services under the county’s direct control.
What Did The Audit Find?
The audit report lists several accounting mistakes that have been costing LAHSA money. For one, the agency reportedly awarded $50.8 million in cash advances to subrecipients and service providers but has so far only been able to recoup $2.5 million of that amount due to a failure to establish formal agreements as to how and when the advanced funds would be repaid.
The report also states that LAHSA did not always pay their service providers on time, even when funds were available to do so. In other instances, subrecipients were paid using funding from inappropriate sources when reimbursement had not yet come through from the appropriate funder.