An independent audit ordered by U.S. District Judge David Carter has revealed significant issues in how Los Angeles tracks its spending on homelessness programs, identifying that billions of taxpayer dollars remain unaccounted for.
The audit found the Los Angeles Homeless Services Authority (LAHSA) lacks adequate data systems and financial controls, making it nearly impossible to monitor expenditures and assess the effectiveness of services provided.
Auditors noted a high level of noncompliance among service provider contracts and poor document trails, resulting in taxpayer funds being vulnerable to misallocation.
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“What we found in that document was quite shocking,” said Paul Webster, executive director of LA Alliance for Human Rights, in an interview with the Westside Current. “Details of a fractured, ineffective system of trying to help people who are experiencing homelessness. Poor oversight, lack of accountability, severe financial mismanagement, inaccurate and inconsistent data—an inability to track payments, track services, track people—and really a complete absence of accountability.”
“With $2.3 billion in spending analyzed, we can only imagine that the same kind of mismanagement, lack of accountability, and ineffective oversight are present in the remaining two-thirds of the budget and programs as well.”
The report highlights the need for systemic reforms to improve accountability and transparency in homelessness spending.
Elizabeth Mitchell, an attorney for the plaintiffs, emphasized that these findings validate concerns about the city’s management of homelessness services.
“It’s heartbreaking,” said Mitchell, an attorney for LA Alliance for Human Rights. “It’s atrocious. It’s immoral. It’s unjustified. But, what it is not, is surprising.”
As the city grapples with these revelations, further hearings are set for March to discuss the audit’s findings and implications.
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