A recent audit has uncovered significant mismanagement in Los Angeles’ handling of funds allocated to combat homelessness. The report, commissioned by U.S. District Court Judge David O. Carter and conducted by Alvarez & Marsal Public Sector Services, highlights the city’s failure to properly track $2.3 billion intended for homelessness programs.
The audit identifies several critical issues:
- Inadequate Record-Keeping: The Los Angeles Homeless Services Authority (LAHSA) maintained poor records, making it challenging to trace substantial funds allocated to city programs.
- Fragmented Data Systems: Disjointed data systems across LAHSA, the city, and the county, coupled with inconsistent reporting formats, hindered the verification of spending and assessment of program outcomes.
- Ambiguous Contracts: Contracts between the city, LAHSA, and service providers often contained broad terms without clear definitions, leading to ambiguity about the scope and type of services delivered.
These deficiencies raise concerns about potential resource misallocation and underscore the need for enhanced oversight and accountability.
The audit’s release coincides with alarming statistics from the Los Angeles County Department of Public Health, indicating that in 2023, an average of seven homeless individuals died per day in the city. The leading causes of death were overdoses, heart disease, and transportation-related injuries.
This report adds to a series of challenges faced by Los Angeles in addressing its homelessness crisis. Previous initiatives, such as Measure H, have faced scrutiny over fund allocation and effectiveness. Voter skepticism has grown due to concerns over efficient fund use, as highlighted in discussions surrounding Measure A.
The city has faced criticism for budgetary decisions impacting essential services. In 2024, Mayor Karen Bass reduced the fire department’s budget by $17.6 million, prioritizing homeless spending. This decision came under scrutiny, especially when devastating wildfires later that year highlighted the need for robust emergency services.
The audit’s findings have prompted calls for immediate reforms to ensure that funds allocated for homelessness are effectively managed and reach those in need. Enhanced transparency, improved data management, and clearer contractual agreements are among the recommended measures to address these systemic issues.
