FraudBadNo taxation without receipts

All cases / Local / Los Angeles

Soft fraudLocal · Los AngelesCan't be checked

$2.3 billion: Homelessness money LA couldn't fully trace

Court-ordered auditors identified $2.3 billion in city homelessness funding and couldn't fully quantify what was spent on each program.

FraudBadPublic receipt
Los Angeles
  1. City homelessness funding identified by auditors$2.3B1
  2. Spending per program fully quantifiedNo1
  3. Provider invoicesMany lacked dates or support2
  4. Case managers at one site vs. case managers billed2 vs. 102
  5. City staff tasked with monitoring resultsNone1
  6. What the $2.3B bought████████████████
fraudbad.comNo taxation without receipts

What happened

A federal judge ordered an independent audit of Los Angeles' homelessness spending as part of a lawsuit settlement. Auditors at Alvarez & Marsal found fragmented records, manual invoicing, and contracts too vague to measure what was delivered.

In one case, a provider that appeared to have two case managers at a site billed for ten.

Why nobody caught it

  • Money flowed through several city departments and a joint city-county agency, so no single set of books showed the whole picture.
  • The city spends more than $1 billion a year on homelessness, and no city staff or department is assigned to monitor the results, according to a councilmember's office.

How sure are we?

Can't be checked

The books or the spending can't be verified, so fraud can't be ruled in or out.

The audit did not find fraud. It found the city couldn't show where much of the money went, which is the condition fraud needs.

Sources

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America.co · The RECEIPTS Act

Want to stop it?Sign the Receipts Act.

Public money should come with a receipt anyone can check. The RECEIPTS Act starts with one rule for federal purchases over $25,000 from GSA's buying catalog: publish the price paid next to what other agencies paid for the same thing.

Sign the Receipts Act ↗

A citizen-authored working draft hosted on America.co. It has not been introduced in Congress.