LAHSA Audit Uncovers Major Financial Inaccuracies

0:00Auditors just dropped the bombshell on the Los Angeles Homeless Services Authority, or LAHSA, uncovering major inaccuracies in their financial. Statements for last fiscal year, which ended June 2025. The agency handles over $800 million in taxpayer funds annually, but poor internal controls lets big adjustments need it right before finalizing the report. This single audit required by the feds and done by an outside firm highlights a significant deficiency that could invite errors or even fraud. These issues aren't new. Past audits already waived red flags on oversight, yet problems persist, delaying the report past March 31st. Deadline, and risking future federal cash. LAHSA hopes to submit the final version this Friday, more than three weeks late. Reactions are pouring in from leaders. County supervisors like Katherine Barger called it, inexcusable, confirming why they yank their $300 million, plus an annual funding. Last spring to manage it directly, supervisor Lindsey Horbath echoed that accountability

1:04is non-negotiable. Mayor Karen Bass, the sole elected on LAHS Board, states silent through her team, while the city's homelessness committee pushes to shift funds out. Over the next year, though Bass warns against rushing to avoid service disruptions, digging deeper, auditors flagged locked in leases costing $75 million long, with the master leasing program for 700, 72 housing units bleeding 10 million yearly from other grants. Payroll slipups hit two, three of 40 time sheets lacked approvals for federal funds, and there's an ongoing state probe into a former CEO's potential. Conflict with a $2.1 million contract tied to her husband's nonprofit. As LAHS CEO gears up to implement fixes and the Commission Eyes Approval Friday, this shakes up how the city and county tackle the homelessness, crisis, forcing a rethink on who controls those vital dollars. This has been California News Today, powered by AI.

2:05I'm Corey with the story.