A recent audit by the Los Angeles Homeless Services Authority (LAHSA) has identified several money management deficiencies, including issues with repayment problems, recovering cash advances, and misuse of funds. The audit found that LAHSA did not establish formal agreements with subrecipients for repaying $82 million in working capital advances, resulting in a significant risk of waste and misuse of public funds.
The audit also revealed delays in executing contracts, with some taking up to 170 days to finalize, and discrepancies in accounting records. In one instance, two subrecipients were underreported by $505,591, while documentation for $5 million in advances was missing.
LAHSA officials acknowledged the problems but claimed that many of them were associated with the unprecedented issues in operating the agency during the pandemic-era shutdowns. However, auditors noted that internal delays and inadequate data tracking hindered LAHSA’s ability to monitor its contracting processes.
In response to the audit, Lindsey P. Horvath, Chair of the Los Angeles County Board of Supervisors, announced plans to create a new department to centralize accountability and expedite solutions for addressing the problems identified in the audit.
Source: https://smdp.com/2024/11/21/audit-of-homeless-agency-finds-poor-accounting-and-questionable-payments