Long Beach, Calif. – The City Auditor’s Office has turned its investigation of homeless‑service spending over to an outside agency after auditors uncovered what they described as “irregularities” that raised “significant concerns.” The move, announced in an email to NBC4, signals a serious step toward independent review of the city’s use of public funds.
Audit findings and next steps
During the audit, Auditor Laura Doud’s team found questionable billings, missing documentation, and uncertainty about whether services were actually delivered. Doud said the findings were “more concerning than a standard, routine audit” and that the irregularities warranted an external review.
“During our audit, we identified irregularities that caused significant concerns. We reviewed the information and have turned over the investigation to an outside agency,” Doud wrote to NBC4. The Auditor’s Office has not disclosed the identity of the outside agency, nor whether it is a law‑enforcement entity.
Potential agencies and legal perspective
Legal analyst Royal Oakes cautioned that an outside referral does not automatically prove criminal wrongdoing, but it often indicates that officials believe the matter could be serious. “Usually when a city auditor hands the ball to an outside investigator, it’s a sign that they think this could be a very serious matter,” Oakes said. He noted that possible recipients could include the U.S. Attorney’s Office, FBI, IRS, Los Angeles County District Attorney, or the California Attorney General.
Oakes added that an external investigation could eventually involve subpoenas or other investigative tools, though no agency has yet been confirmed as the recipient.
Broader context of homelessness‑fund investigations
The Long Beach audit comes as federal authorities continue to pursue alleged fraud and corruption in homelessness programs across the Los Angeles area. Earlier this week, U.S. Attorney Bill Essayli announced arrests in separate cases involving misuse of homelessness funding, including a case tied to a Culver City nonprofit founder. No direct link has been established between those federal cases and the Long Beach audit.
When NBC4 asked the U.S. Attorney’s Office whether federal investigators had received information about the Long Beach providers, the office responded, “Per DOJ policy, we can neither confirm nor deny the existence of any investigation.”
What remains unanswered
Key questions still lack answers: Which agency received the referral? When was the referral made? Will the external review focus on criminal violations, civil penalties, or administrative corrections? The Auditor’s Office has not provided further details.
Long Beach residents and local watchdog groups are watching closely, emphasizing the importance of transparency and accountability in the use of taxpayer dollars for homelessness services. As the investigation proceeds, the city’s commitment to independent oversight reflects a broader effort to ensure that public funds are spent responsibly and that vulnerable populations receive the services intended for them.
Community response
Local community leaders have expressed a desire for swift clarification. “Our city must be diligent in safeguarding public resources while still addressing the urgent needs of our homeless neighbors,” said a spokesperson for the Long Beach Chamber of Commerce. The spokesperson added that the city’s leadership remains committed to both fiscal responsibility and compassionate service delivery.
Auditor Doud described the review as “one of the top audits we have done in 20 years,” underscoring the significance of the findings. As the outside agency conducts its work, the city will continue to provide updates to the public.
Original reporting: NBC4 Los Angeles — read the source article.
