Audit of homeless services contracts referred outside City Hall
The Long Beach City Auditor has handed an investigation into spending on homeless service providers to an outside agency after auditors found what the auditor described as "irregularities" that raised "significant concerns," city officials confirmed this week.
Auditor Laura Doud said the probe concerned millions of dollars the city paid to homeless service contractors. The Auditor’s Office has not identified the outside agency that will handle the matter, and it has not said whether the referral is to a law enforcement body.
The disclosure follows months of scrutiny by local media and watchdogs. NBC4 reported the referral and said it had pursued answers about whether the case had been forwarded to the U.S. Attorney’s Office, the FBI or another federal, state or local law enforcement agency. The Auditor’s Office has not responded to those specific inquiries.
What auditors found and what remains unclear
According to the Auditor’s Office, the audit uncovered questionable billings, missing documentation and concerns about whether the city received the services it paid for. Those findings prompted the referral.
"During our audit, we identified irregularities that caused significant concerns. We reviewed the information and have turned over the investigation to an outside agency," the auditor said in an email to NBC4.
Five months earlier, in an April interview, Doud told NBC4 that auditors had encountered "some irregularities and some red flags" and said the results were "more concerning than a standard, routine audit." When asked then whether the matter had been referred for criminal investigation, she said she had been advised not to address those questions at that time and briefly asked for the camera to be stopped.
The new disclosure confirms that the matter has been referred outside the city, but it does not answer key questions that residents and oversight advocates have pressed for weeks:
- Which outside agency received the referral?
- Is the referring body a law enforcement agency or an independent review organization?
- When exactly was the referral made?
- Is the outside review focused on potential criminal conduct or administrative failures?
Local implications for services and oversight
Long Beach contracts with nonprofit and for-profit providers to deliver shelter, case management and other services to people experiencing homelessness. Questions about billing, documentation and performance could affect future contracting, payment timelines and the availability of services to clients who rely on them.
City departments that manage homelessness funding may pause or alter payments while an outside agency reviews the audit findings. City Council members and department leaders may also face calls to strengthen procurement controls, increase transparency in contract management and require more rigorous performance reporting from providers.
Advocates for people experiencing homelessness say accountability is important, but they also warn that sweeping pauses in funding can disrupt services for vulnerable residents. The Auditor’s Office did not announce any immediate changes to existing contracts in its statement to NBC4.
Timeline of public disclosures
| Date | Public action |
|---|---|
| April (reported) | Auditor Laura Doud discussed "irregularities" and declined to say whether the matter had been referred for criminal investigation. |
| September (reported) | Doud confirmed the audit was turned over to an outside agency, citing "significant concerns." |
City officials have not provided additional detail about the scope of the irregularities or whether any vendors have been suspended or flagged pending the outside review. NBC4 and WE NEWS have asked the Auditor’s Office whether the referral went to a federal or state law enforcement agency; the office has not yet answered those questions.
What to watch next
Residents and service providers should watch for several possible developments: formal announcements from the city identifying the outside agency, statements from impacted contractors, and any changes to contract payments or service delivery. City Council oversight hearings or requests for additional audits are also possible as elected officials respond to the Auditor’s findings.
The referral underscores tensions inherent in managing large social-service contracts: the need to move resources quickly to address homelessness while ensuring adequate documentation and accountability for public funds.
WE NEWS will continue to monitor the situation and report any new information from the City Auditor, the City Council and outside agencies handling the matter.
