CO. AUD.

FY 2020 2021

County Auditors · los-angeles-2020-fy-2020-2021 · Other · 2020-01-01 · Los Angeles

COUNTY OF LOS ANGELES %0ELOS DEPARTMENT OF AUDITOR-CONTROLLER t KENNETH HAHN HALL OF ADMINISTRATION 4 1 500 WEST TEMPLE STREET, ROOM 525 k LOS ANGELES, CALIFORNIA 90012-3873 PHONE: (213) 974-8301 FAX: (213) 626-5427 ARLENE BARRERA ASSISTANTAUDITOR-CONTROLLERS AUDITOR-CONTROLLER KAREN LOQUET OSCAR VALDEZ CONNIEYEE CHIEF DEPUTYAUDITOR-CONTROLLER December21, 2021 TO: Supervisor Holly J. Mitchell, Chair Supervisor Hilda L. Solis Supervisor Sheila Kuehl Supervisor Janice Hahn Supervisor Kathryn Barger 6vl }-rz5 FROM: Arlene Barrera Auditor-Controller SUBJECT: AUDIT OF THE HOMELESS AND HOUSING MEASURE H SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2021 Attached is the independently audited report for the County of Los Angeles Homeless and Housing Measure H Special Revenue Fund (Measure H) Schedule of Revenues and Expenditures and Changes in Fund Balance (Schedule) for the year ended June 30, 2021 We contracted with an independent Certified Public Accounting firm, BCA Watson Rice LLP (BCA or auditor), to perform the audit under the Auditor-Controller’s master agreement for audit services. BCA’s report (Attachment I) concludes that the Schedule is presented fairly in conformance with generally accepted accounting principles. In addition, the auditor did not identify any audit findings this year. We also engaged BCA to complete an Agreed Upon Procedures review to ensure that Measure H funding was being used as intended by the voter approved Measure. The auditor’s report (Attachment II) did not identify any exceptions this year. If you have any questions please call me, or your staff may contact Tern Kasman at tkasmanauditor.lacounty.gov. AB:OV:TK:JH:meb Attachments c: Fesia Davenport, Chief Executive Officer Celia Zavala, Executive Officer, Board of Supervisors Audit Committee Countywide Communications Help Conserve Paper Print Double-Sided — “To Enrich Lives Through Effective and Caring Service” Attachment I COUNTY OF LOS ANGELES Independent Auditor’s Report on Schedule of Revenues and Expenditures and Changes in Fund Balance HOMELESS AND HOUSING MEASURE H SPECIAL REVENUE FUND For the Fiscal Year Ended June 30, 2021 Q RCA Walso,, Rice LLP Certified PublicAccountantsand Advisors 2355 Crenshaw Blvd. Suite io Torrance, CA 90501 t: (310) 792-4640 f: (310) 792-4140 County ofLos Angeles Homeless and Housing Measure I-I Special Revenue Fund Table ofContents Independent Auditor’s Reporl Financial Statements Schedule ofRevenues and Expenditures and Changes in Fund Balance 3 Notes to the Schedule ofRevenues and Expenditures and Changes in Fund Balance for Measure H Special Revenue Fund 6 Required Supplementary Information Schedule ofRevenues and Expenditures and Changes in Fund Balance — Budget and Actual on Budgetary Basis For the fiscal year ended June 30, 2021 II Noles to the Required Supplementary information 13 Supplemental Information In Accordance with Government Auditing Standards IndependentAuditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Mailers Based on an Audit ofthe Schedule of Revenues and Expenditures and Changes in Fund Balance ofthe Homeless and Housing Measure H Special Revenue Fund Performed in Accordance with &overnIneiI!Azidiung Standards 15 Compliance IndependentAuditor’s Report on Compliance with Requirements Applicable to Revenues and Expenditures and Changes in Fund Balance ofthe Homeless and Housing Measure H Special Revenue Fund in Accordance with the Measure H, Ordinance 2017-00], Chapter 473 to the Los Angeles County Code Transaction and — Use Tax to Prevent and Combat Homelessne,cs 17 Current Year Audit Findings and Recommendations 19 Status ofPrior-Year Audit Findings and Recommendations 20 Q ICA I4aIsoii 2355CrenshawBlvd.Suite150 Telephone: 310.792.4640 Torrance, CA 90501 Facsimile:310,792.4331 Certified PublicAccountantsand Advisors www.bcawatsonrice.cem Independent Auditor’s Report Ms. Arlene Barrera Auditor-Controller County ofLos Angeles Los Angeles, California Report on the Schedule ofHomeless and Housing Measure H Revenues and Expenditures We have audited the accompanying Schedule ofHomeless and Housing Measure H (Measure H) Revenues and Expenditures and Changes in Fund Balance (the Schedule) ofthe County ofLos Angeles (the County) for the fiscal year ended June 30, 2021, and the related notes to the Schedule, which collectively comprise the County’s Schedule as listed in the table ofcontents. Management’sResponsibilityfor theSchedule ofMeasureHRevenues andExpenditures The County’s management is responsible for the preparation and fair presentation of the Schedule in accordance with accounting principles generally accepted in the United States ofAmerica; this includes the design, implementation, and maintenance ofinternal control relevanttothe preparation and fairpresentation ofthe Schedule that is free from material misstatement, whether due to fraud or error. Auditor’sResponsibility Our responsibility is to express an opinion on the Schedule based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Schedule is free ofmaterial misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Schedule. The procedures selected dependonthe auditor’sjudgment, includingthe assessmentofthe risks ofmaterial misstatement ofthe Schedule, whether due to fraud orerror. In making those risk assessments. the auditor considers internal control relevant to the entity’s preparation and fair presentation of the Schedule in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation ofthe Schedule. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinioii In our opinion, the SchedLile referred to above presents fairly, in all material respects, the Measure H Revenues and Expenditures of the County for the fiscal year ended June 30, 2021. in accordance with accounting principles generally accepted in the United States ofAmerica. OilierMatter RequitedSupplementaryInlorination Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages II and 12 be presented to supplement the Schedule. Such information. although not a part of the Schedule, is required by the Governmental Accounting Standards Board who considers it to be an essential part of the financial reporting for placing the Schedule in an appropriate operational. economic. or historical context. We have applied certain limited procedures to the required supplementary information in accordance wiih auditing standards generally accepted in the United States ofAmerica. •hich consisted of inquiries ofmanagement about The methods ofpreparing the information and comparing the information forconsistency with management’s responsesto our inquiries, the Schedule. and other knowledge we obtained during our audit of the Schedule. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information As discussed in Note 2 to the Schedule, the accompanying Schedule of the Measure H Special Revenue Fund is intended to present the revenues and expenditures attributable to the Fund. They do not purport to, and do not, present fairly the financial position ofthe County, as ofJune 30, 2021, and the changes in its financial position for the year then ended, in conformity with accounting principles generally accepted in the United States ofAmerica. Other Reporting Required by GovermneniAtidititigStandards In accordance with Government Auditing Standards, we have also issued our report dated December 3 2021, on our consideration ofthe County’s internal control over financial reporting and on our tests ofits compliance with certain provisions oflaws, regttlations, contracts and grant agreements and olher mailers. The purpose ofthat report is to describe the scope ofourtesting ofinternal control over financial reporting and compliance and the results of that testing. and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral pan ofan audit performed in accordance with Government Auditing Standards in considering the County’s intemal control over financial reporting and compliance. 3cn wi,LLP Torrance, CA December 3, 2021 2 selegnA soLfo ytnuoC dnuF euneveR laicepS H erusaeM gnisuoH dna sselemoH ecnalaB dnuF ni segnahC dna serutidnepxE dna seuneveRfo eludehcS 1202 ,03 enuJ dednE raeY lacsiF eht roF :seuneveR 795,836,814 S sexaTlaicepSdevorppAretoV )190832( sessoLtnemtsevnI 39334 sdnuFdemaneRraeYroirP 998344814 seuneveRlatoT ybetartS vklacol !tnemtrapeD evitcejbO rtartSyblatoT :ycnegA tnutidneprE ssensselemolIlncnrP:A seilimaFrofnraorPnooneverPsselemoH lA 654,821,5 S vtnohtaaAsecivreSsselemoHselegnAsoL 00052 sriaffAasemsuBdnaremusnoCfotnemtrapeD — 000579 ecisarbmitcnelaevroirphtiw sriaffAssentoHdnaremusnoCfotnemtrapeD - 96478 secivreS bimaFdnanerdlihCfotnemtrapeD 529512,6 $ seilimaFrofnsaorPnoitneverPsselemoH:lAlatoT slaudividntrofmagorPnnitneverPsselemoH SA 626,781,4 ytirohtuAsecivreSsselemoHseiegnAsoL 000,52 sriaffAasensuBdnaremusnoCfotnemtrapeD — 000.579 ecnarbmucneraeyronphtiw sriaffAsaensuBdnaremusnoCfotnemtrapeD - 8t5.43 secivreS’bunaFdnanerdlihCfotnemtrapeD 222,571 secivreShtlaeHfotnemtrapeD 663,793,5 htudividnIrof maworPnonneverPsselemoH:SAlatoT 192,316,:I ssensselemoHtneverP:AlatoT gnisuoHezidisbuS:B gnisuoH-eRdipaRdnaasEosseitiChtwrentraP 38 360,68 secivreShtlaeHfoenennrapeD 474,590.15 ytnohtuAsecivreSsselemoHselegnAsoL 735.181,15 gausuoH-eRdipaRdaiswEotseuDhtiwreanraP:38latoT sesdsbuSgnisuoHlaredeFfonoitazilitUetatilicaF:48 010,958,7 ttrohtMtnempbeveDvlamoCselegnAsoL 010,958,7 seidisbuSgiusuoHlaredeFfonnitaz.laijletatilicaFkBlatoT snoitazinoIgniliaFesohTrofgiusuoHegdirB!miretnI 78 000.87812 secivreShtlaeHfotnemtrapeD 970,301.9 halaeHcilbuPfoinennrapeD 000,27 htlaeHlatneMfo tnemtrapeD 976,059,3 v*rohtuAsecivreSsselemoHselegnAsoL tS1,300,53 snoituzisnIgihtoiEesohTrofgrsuoHegrB!miretnI 78latoT 503440,49 gnisuoHezidisbuS:BlatoT .eludehcS sihtfotrap largetni na era ecnalaB dnuF ni segnahC dna serutidnepxE dna seuneveRfo eludehcS eht ot setoN 3 selegnA soLfo ytnuoC dnuF euneveR laicepS H erusaeM gnisuoH dna sselemoH )deunitnoC( ecnalaB dnuF ni segnahC dna serutidnepxE dna seuneveRfo eludehcS 1202 ,03 enuJ dednE raeY lacsiF ehtroF ab’tgrtar(,‘. yb)nroT tnemtroprD evitcejbO ygetartSybtnioJ :ycnegA serutidnepxE emocnI esaercnI:C ssemaelemoHfoksiRtarossensselemoHgmcneneEelpoeProfmagorP ycacovdA155ediwytnuoCahsilbatsE’4C 652,641,3 secivreShtlaeHfotnemtrapeD 338,228 htlaeHlatneMfotnemtrapeD 628.1303 secivreSlaicoScilbuPfotnemtrapeD 519,000,7 maorP ycacovdA155ediwytnuoCahsilbatsE:4ClatoT stludAsselemoHroftnemyolpmEdezidisbuS’7C 764,386,4 secivreS ytinummoCdna,gnigA,tnempoleveDecrofkroWfotnemtrapeD ecnarbnmcneraeyroirphtiwdiap secivreS ytinummoCdna,gnigA,tnempoleveDecrofkroWfotnemtrapeD - 878,986,t 000,008 ecIffOevitucexEfeihC 543,371,7 stludAsselemoHroftnemyolpmEdezidisbuS:7ClatoT 062,471,41 emocnIesaercnI:ClatoT seeineSdnatnemeganaMesaCedivorP:)I hcaeR’nlliaJ 2D 755,401,1 secivreShtlaeHfotnenttrapeD 739,924 tnemtrapeDsffirehS 494,435,1 hcaeR.nlliaJ :2DlatoT tcejorPgniraelCdroceR]snrnUrC:6D 436.851,2 rednefeDcilbuPfo lnenstsapeD 436,t51,2 tcejorPgatnaelCdroceRlanimirC 6DlatoT )HSP(gmsuoHevnoppuSsnenanneProf seidisbuSlatneRdnasecivreSedivorP.7D 852,482.84 secivreShtlaeHfotuenatrapeD 511,717,2 htlaeHlatneMfotnenteapeD 040,501.1 staeHcilbuPfotnenorapeD 314.6’CI.25 HSProf seidisbuSlatneRdnasexvreSedivorP:7DlatoT 145,997.55 .ecivaeSdnatnemeganaMesaCedivmP:DlatoT metsySdetanidaooCaetaerC:E metsyShcaertuOediwytnuoC:6E 752,705.91 secivreShtlaeHfosnenorapeD 227.252 hkaeHchbuPfotnemtrapeD 526.811.21 ytnohtuAsecivreSsselemoH selegnA soL 486.878.13 metsyShcaertuOediwytnuoC:6ElatoT .eludehcS sihtfotrap largetni na era ecnalaB dnuF ni segnahC dna serutidnepxE dna seuneveRfo eludehcS eht ot setoN 4 selegnA soLfo ytnuoC dnuF euneveR iaicepS H erusaeM gnisuoH dna sselemoH )deunitnoC( ecnalaB dnuF ni segnahC dna serutidnepxE dna seuneveRfo eludeheS 1202 .03 enuJ dednE raeY lacsiF ehtroF ybvgeirrS yblarhT tneannapeiJ eviece/bO .zetartSybletnI -ycnegA serutidnepxE metsySyelnEdetasidrooCehtnehtgnertS:7£ 854.87921 vtsxshluAsecivreSsselemoHselegnAsoL 096.207,1 eciffOevitucexEfhC 216.489,3 ecnarbmucneraeyronphwdiap eciffOevitucexEfeulC - 265.776 elbayap eciffOevitucexEfeihC - 536921,2 ecnarbmucne 1202-eciffOevitucexEfeihC 759,274.12 metsySyonEdetanidrooCehtnehtgnertS:76latoT meisySretlehS ycnegremEehtecnahnE:SE 310.776.82 secineShtlaeHfoinenurapeD 271,131,26 vtdohtuAsecmreSsselemoHselegnAsoL 000,27 htlaeHlatneMfolnentaapeD 539.554 sikaeHeslbupfotnent’japeD 000,OOl.2 eciffOevitucexEfeihC 021,634,39 metsySretlehSycnegremEehtecnahnE:SElatoT htuoYegAnoitisnarTrofsecivreSdecnahnE:41E 897.132.21 ytirohtuAsecivreSsselemoHselegnAsoL 897,132,21 htuoYegAnoitisnarTrofsecivreSdecnahnE 4IElatoT 974,910,951 metsySdetanidrooCaetaerC:ElatoT :evitartsinimdA 186,910,2 186,910,2 noitartsinimdAevoasinlsselemoH 186,910,2 :evitartsinimdAlatoT 755,076,633 serutidnepxElatoTdnarG 243,377.18 seFastidnepxErevO,euneveRfossecxE 243,377,18 ecnalaB dnuFniegnabCteN 919,362,79 0202,I yluJ,ecnalaB dnuF 162.730,971 S 1202,03enuJ,ecnalaBdnuF .eludehcS sihtfo trap largetni na era ecnalaB dnuF ni segnahC dna serutidnepxE dna seuneveRfo eludehcS eht ot setoN S County ofLos Angeles Homeless and Housing Measure H Special Revenue Fund Notes to the Schedule ofRevenues and Expenditures and Changes in Fund Balance June 30. 2021 The Notes to the Schedule of Revenues and Expenditures and Changes in Fund Balance are summaries of significant accounting policies and other disclosures considered necessary for a clear understanding ofthe accompanying Schedule ofRevenues and Expenditures. 1. Organization General The County ofLos Angeles (County), which was established in 1850, is a legal subdivision ofthe State ofCalifornia charged with general governmental powers. The County’s powers are exercised through an elected five-member Board ofSupervisors, which, as the governing body ofthe County, is responsible for the legislative and executive control ofthe County. Homeless and Housing Measure H Special Revenue Fund Measure H, also known as the Transaction and Use Tax to Prevent and Combat Homelessness Ordinance (Los Angeles County Code, Chapter 4.73) is a special revenue fund ofthe County used to account for the proceeds ofthe voter-approved quarter-cent county-wide sales tax that became effective in March 2017. The California Board of Equalization began collecting the Measure H quarter-cent sales tax from businesses and consumers in October 2017. Revenues collected are required to be expended by the County pursuant to an expenditure plan approved by the Board of Supervisors prior to June 30” ofeach fiscal year. The fiscal year (FY) 2020-2021 Board approved expenditure plan funded 14 Homeless Initiative strategies to combat the homeless crisis in Los Angeles County. The funding was allocated to the following County departments and outside agencies: the Chief Executive Office (CEO). the Department of Children and Family Services (DCFS). the Department ofHealth Services (DHS). the Department ofMental Health (DMH). the Department of Public Health (DPH), the Department of Public Social Services (DPSS). Public Defender(PD). Workforce Development. Aging and Community Services (WDACSL Los Angeles Sheriffs Department(LASD), the Department ofConsumerand Business AtThirs (DCBA), the Los Angeles Community Development Authority (LACDA) (formerly known as the Community Development Co,nmission), andtheLosAngeles Homeless Services Authority (LAHSA). These strategies were divided into the following six areas: Strategy A Preventing Homelessness Combating homelessness requires reducing the - - number of families and individuals who have become homeless and helping cunently homeless families and individuals move into permanent housing. Strategy B SubsidizeHousing Homeless faniiliesand individuals lack sufficient income - - to pay rent on an ongoing basis due to the high cost of housing in Los Angeles County. Subsidizing rent and related housing costs is key to enabling homeless families and individuals to secure and retain permanent housing and to prevent families and individuals from becominghomeless. Strategy C Increase Income A high percentage of homeless adults can increase their - - income through employment and qualified disabled homeless individuals can increase their income through federal disability benefits. This increase in income can assist homeless families and individuals pay for their own housing in the future. 6 County ofLos Angeles Homeless and Housing Measure H Special Revenue Fund Notes to the Schedule ofRevenues and Expenditures and Changes in Fund Balance June 30, 2021 Organization (Continued) Homeless and Housing Measure H Special Revenue Fund (Continued) Strategy U Provide Case Management and Services The availability of appropriate - - case management and supportive services is critical to enable homeless families and individuals to take advantage of an available rental subsidy, increase their income, and access/utilize available services and benefits. Since the specific needs ofhomeless families and individuals vary depending on their circumstances, they need case management and supportive servicesto secure and maintain permanent housing. Strategy F Create a Coordinated System Homeless individuals, families, and youth - - often encounter multiple County departments, city agencies, and community-based providers based on their complex individual needs. This fragmentation is often exacerbated by lack ofcoordination ofservices, disparate eligibility requirements, funding streams, and bureaucratic processes. A coordinated system brings together homeless and mainstream services to maximize the efficiency ofcurrent programs and expenditures. Strategy F Increase Affordable Homeless Housing The lack ofaffordable housing for - - the homeless contributes substantially to the current crisis ofhomelessness. TheCounty and cities throughout the region can increase the availability of both affordable and homeless housingthough a combination ofland use policy and subsidies for housingdevelopment. 2. Summary ofSignificant Accounting Policies The Schedule ofRevenues and Expenditures and Changes in Fund Balance for the Homeless and Housing Measure H Special Revenue Fund (the Schedule) has been prepared in conformity with Generally Accepted Accounting Principles in the United States ofAmerica (US GAAP) as applied to governmental units. The Governmental Accounting Standards Board is the recognized standard- setting body for establishing governmental accounting and financial reporting principles for governments. The most significant ofthe County’s accounting policies with regard to the special revenue fund type are described below: Fund Accounting The County utilizes fund accounting to report its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregatingtransactions related to certain governmental functions oractivities. A fund is aseparate accounting entity with a self-balancing set ofaccounts. Funds are classified into three categories: governmental, proprietary, and fiduciary. Governmental Funds are used to account for most ofthe County’s governmental activities. The measurement focus is a determination of changes in financial position, rather than a net income determination. The County uses governmental fund type Special Revenue Fund to account for Measure H sales tax revenues and expenditures. Special Revenue Funds are used to account for proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. 7 County ofLos Angeles Homeless and Housing Measure H Special Revenue Fund Notes to the Schedule ofRevenues and Expenditures and Changes in Fund Balance June 30, 2021 2. Summary ofSignificant Accounting Policies (Continued) Basis ofAccounting The modified accrual basis of accounting is used for the special revenue fund type. Under the modified accrual basis of accounting, revenues (primarily from sales tax) are recorded when susceptible to accrual, which means measurable (amount can be determined) and available (collectible within lhc current period or soon enough thereafter to be used to pay liabilities ofthe current period). Expenditures are generallv recorded when a liability is incurred. Investment Earnings/Losses The County maintains a pooled cash and investments account that is available for use by all funds, except those restricted by State statutes. For the fiscal year ended June 30. 2021, the Homeless and Hotising Measure H Special Revenue Fund had investment losses of$238,091. Use of Estiniates The preparation of the Schedule in conformity with L’S GAAP requires management to make estimates and assumptions that affect the reported amounts of revenues and expendittires dtiring the reporting period. Actual restilts could differ from those estimates. ScheduleofRevenuesand Expenditures and Changes in Fund Balance forMeasureH Special Revenue Fund The Schedule is intended to reflect the revenues and expenditures of the Homeless and I-lousing Measure H Special Revenue fund only. Accordingly, the Schedule does not purport 10, and does not, present fairly the financial position ofthe County and changes in financial position thereoffor the year then ended in conformity with US GAAP. The audited financial statements for the Homeless and Housing Measure H Special Revenue Fund for the fiscal year ended June 30. 2021 are included in the County’s Audited Annual Comprehensive Financial Report (ACFR), which can be found at https://auditor.lacount’ .ov/annual—comprehensive—flnancial—repon. 3. LosAngeles HomelessServices Authority For the year ended June 30. 2021, the County recorded $163,822,288 for LAHSA’s Measure H expenditures to prevent and combat hoinelessness projects under various homeless initiative strategies as listed in the table on the following page. However, LAHSA’s actual Measure H expenditLires were $173,816,378 for the year ended June 30, 202!. The $9,994,090 difference represents LAHSA’s late 4h quarter claims/billings not reimbursed in FY 2019-20 by the County since it was submitted beyond the County’s processing cut-off date for expenditures reimbursentents/payments. S County of Los Angeles Homeless and Housing Measure H Special Revenue Fund Notes to the Schedule ofRevenues and Expenditures and Changes in Fund Balance June 30, 2021 3. LosAngelesHomeless ServicesAuthority (Continued) MeasureH MeasureH Disbursement by Actual Strategy County Expenditures Difference Al Homeless PreventionPrograms forFamilies S 5,128,456 $ 5,518,453 $ (389,997) AS Homeless PreventionPrograms forIndividuals 4,187,626 4,333,801 (146,175) B3 Partnerwith Cities to Expand RapidRe-Housing 51,095,474 51,991,006 (895,532) 137 Interim/Bridge HousingforThoseExitingInstitutions 3,950,679 3,967,927 (17,248) E6 CountywideOutreach System 12,118,625 12,790,568 (671,943) E7 Strengthenthe CoordinatedEntrySystem 12,978,458 12,640,715 337,743 ES Enhance the EmergencyShelterSystem 62,131,172 69,499,726 (7,368,554) E14 Enhanced Services forTransition AgeYouth 12,231,798 13,074,182 (842,384) Total S 163,822,288 S 173,816,378 $ (9.994,090) 4. COVID-19 Impact and Considerations The COVID-l9 outbreak in the United States has caused business disruption through mandated and voluntary closings ofbusinesses. While the disruption is currently expected to be temporary, there is considerable uncertainty around its duration. The County, through the CEO, expects this matter to negatively impact its operating environment; howcver, the re]ated financial impact and duration cannot be reasonably estimated at this time. 5. Contingencies The County is involved in a lawsuit filed by the LA Alliance for Human Rights alleging that the County has nottaken adequate action to address the homelessness crisis in the Los Angeles County area. The County is working towards resolving the issues raised by the complainants. The County believes that any liability that may arise from the ultimate resolution of this lawsuit is not determinable at this time, but could be significant. 6. Subsequent Events In preparing the Schedule of Measure H Revenues and Expenditures, the County has evaluated events and transactions for potential recognition or disclosure through December 3, 2021, the date the Schedule was issued. No subsequent events occurred that require recognition or additional disclosure in the Schedule. 9 REQUIRED SUPPLEMENTARY INFORMATION 10 __________________________________ County ofLos Angeles Homeless and Housing Measure H Special Revenue Fund Schedule ofRevenues and Expenditures and Changes in Fund Balance Budget and Actual — on a Budgetary Basis For the Fiscal Year Ended June 30, 2021 Budget Aduial Variance Revenues: VoterApprovedSpeculTaxes S 339.179.000 S 48638591 S 79.159.597 InveslineislFanhil%s 655,909 655909 PriorYearReturnedFunds 13393 43,393 Total Revenues 339,179,000 419.337.899 80.158.899 Expenditures A: PreventIlomelessness Al HonselessPrevention ProaniforFamilies losAngelesIlotnelessServicesAullIorily 8.991000 5,128.156 3.862.544 DepaomentofconstmierandBusinessAffairs 25.000 1.000.000 (975,000) DelsannielsiofChildren and Fansily services soo,ooo 87,469 412.531 lolalAl:IloloelessPreseislion ProRaln forFamilies 9,516,000 6.215,925 3,300,075 AS:IlottselessPrevenlion Proscans forIndividuals LoaAngelesHomelessServicesAulisorily 4.083.000 4.187.626 (104.626) Dcpartnscnlofconsutncrand BusuiessAffairs 25,000 1.000,000 (975.000) DepanmeistofChildrenand FamilyServices 300.000 34.518 265.482 Deparunseniof1-lealiluServices 1.500,000 75.222 1.324.778 . TotalAS:HomelessPrevention Prograns forIndividuals 5,908,000 5,397,366 510.634 l’eIalA:Prevent llomelessness 15.424.000 11.613.291 3.810.709 B:subsidizeHousing 83 ParinerwillsCilies10ExpandRapid Re.Housing DepanuulenloftleallluServices 150,000 86,063 63.937 LosAngelesHomelessServicesAuthority 75.368.000 51.095.474 24.272.526 lAnaiB3 ParlnerwithCilies10FapatidRapidRe’Fluusing 75,518,000 51.181.537 24.336,463 B4:Facililate LJliizalionofFederalHosisingSubsidies LosAngelesCounly Des’elopnsenlAsilIsorit 8,422,000 7.859.010 562.990 Tolal84. FarililalelililizalionofFederal HosisiagSubsidies 8.422.000 7,859.010 562,990 137:tuslerins BridgeIlosisiusgfor3hoseExitingInslilutions DepaonuentofHcaltls Services 21,878,000 21.878.000 DepaonuenrofPublicHealilu 9.415.000 9.103.079 311.921 LosAngelesIlonseless Services Asilluoritv 4,627,000 3.950.679 676,321 DeparlmenlofMenIalHcallli 72.000 72.000 TolalB7 lislerusi- BridgeHousingforThoseExitingInsuitsstions 35.992,000 35.003,758 988,242 Total II:subsidize Housing 119,932,000 94.044,305 25,887.695 C: Increase mmmc C4:Ealablish aCouuulyside551 AdvoraeyProain orPeopleE,.pencncing HouuselessusessoralRiskofHotnelessness Delsarunselul ofHealilu Services 3,951,000 3.146.256 804,744 DepartnscnlofMenlulHealth 1,101,000 822,833 278.167 Delsarunsenl ofPuhlieSocial Services 4.600,000 3.031.826 1.568,174 TotalCl: EslablislsaCounlvsxidc SSI Advocacy Proam 9.652,000 7,000,915 2,651,085 C7:Subsidized Employmcli) forHomelessAdults Depanuiseill of\VorkforceDevelopnsetsl. AdnandCoulaununilyServices 7.498.000 6.373,345 1.124,655 ChiefExecsiliveOffice 800.000 800,000 foulCl:SsibssdizedEilsployinelsl forllonselessAdulls 8.298.000 7,173,345 1,124,655 TulalC:IncreaseIncome 17.950.000 14,174.260 3,775.740 See accompanying notes to the required supplementary information. II County ofLos Angeles Homeless and Housing Measure H Special Revenue Fund Schedule ofRevenues and Expenditures and Changes in Fund Balance Budget and Actual on a — Budgetary Basis (Continued) For the Fiscal Year Ended June 30, 2021 Budget sctual ‘ariance D: Pm,ideCase %l’anagcmrntand Senke Dl JailIn-Reach DeparlittentofHeatlhServices 1.870.000 1104.55? 765.443 Sheriffs Department 465,000 419,93 35063 TotalDl’JailIn-Reach 2,335.000 i.534.4’ll 800506 [36 CntttiaialRecordClearingProject DepartmentofPublicDefender 2.394,000 2.158,e,34 135.366 ‘l’olaI[36:CrimissalRecordClearingProject 2,394,000 2158.634 235366 Dl PeoveServicesand RentalSitbsisles forPermanentSitppss.itve ItottstttgIPSH( Departmentoft eaklt Sersk.es 48.627.255 48.284.258 342.007 DzparitnenlofNlen:alHeahh 9613000 2,717.115 6.895.885 DetsantimentofPstblseHealth 1.561.000 1.105.040 458.91,0 ‘fetal 07 Provide Servicesand RentalSsihstds foe PSH 59,800.255 52.1(2641 7697842 Total 0: P,videCase Managementand Scniccs 62,553,255 55.799,541 8.733.712 F:Citate a(‘nonhinaledSystem E6 Costittysside0sttreacli System DepanmimeniofHealth Services 20,881.145 19,507.157 1.371 488 DeparlttienlofPublic Ilealtlt 756,000 251,712 503,278 Los AngelesHotiselessServices Astlltority 11,611.000 12.118.625 (507,625) IleparimenlofMentalHealsls - - - Total1*6:CoutityssideOutreach System 33.248.745 31.878,601 1.370.111 07 5trengslsetutheCoordimualed Entry Sysletis LosAngelesHomelessServices Atmmlsorily 27.069,000 2,978.458 14.090.542 CIsieft*-seetutuveOffice 2.567,000 8.494199 (5,927,499) Total [7:Slrengthen lie(‘oorshimiated 1*010’System 29.636.000 21,472.957 8.163.043 08:Etslsatseethehtnergemte} ShelterSyslem DepartnsentofHealth Services 32,558,000 28,677,013 3.880,987 losAisgelesHomelessServicesArtllsorisy 76.058,000 62.131.172 13,926.828 DepartttsentofMentalItealth 72,000 72,000 - DepartttsetstofPttblieHealth 668.000 455.935 212.065 ClmtefExecstlive Office 2,100,000 2,100,000 - ‘rotal1*8: l*ttltatuceIlseEmergetsey ShelterSysmeuss 111.456.1)00 93,436120 18.019,880 Eli Ettlssinremi Servicesfor‘t’rattsiliott AgeVesuutls LosAngelesHotnelessServicesAttllsorul> 14.499.000 12,231.798 2.267.202 TotalEli Etihaitced ServicesforTrattsutunnAprVotttlt 14.499.000 12.231.798 2,267.702 Total I: (‘iratea (‘onrdinaiedSystem 188,839,745 159,019179 29,820,266 ‘simmiiiratlie: HotmmeIea ln’auatsseAdmtnisteatzn 3.511.000 2.019,681 I 491 319 Total Administrative: 5.511.000 2,0151,631 1.491,319 ‘local Espendhlures 4l0.t90,000 336,670 557 75,519,443 FrnsIDehiril)ofResenuesOverEspenditssits (71,011,0001 82,607,342 6.639.456 less:(‘ontrachualObligations/Changes isfund balance Cc.tn:ssitmetslsOtisianuLogasoffiscal‘earcud I3.337.OOt) 13.337.000 - Chatsges at fiumibalance (421.3421 1421.3421 TotalNetChange mm Cetutrselutalohtuintiotts 12.91565% 12.915.658 - Nd Changein Fund Balance (71,01.0001 95,583,030 I160.591.0001 Fund Balance.July I. 2020 71,011.000 71,011,000 - Fund Balance, tune30. 2021 $ S 166.594,000 S (166.594.0001 - See accompanying notes to [he required supplementary information. 12 County ofLos Angeles Homeless and Housing Measure H Special Revenue Fund Notes to the Required Supplementary Information June 30, 2021 1. Budgets and Budgetary Information In accordance with the provisions ofSections 29000-29144 ofthe Government Code ofthe State of California. commonly known as the County Budget Act, the County prepares and adopts an annual budget on or before October 2 for each fiscal year. Budgets are adopted on a basis of accounting that is different from accounting principles generally accepted in the United States of America. Budgets for the Homeless and Housing Measure H Special Revenue Fund are consistent with the annual expenditure plan approved by the Board ofSupervisors. The County utilizes an encumbrance system as a management control technique to assist in controlling expenditures and enforcing revenue provisions. Under this system, the current year expenditures are charged against appropriations. Accordingly, actual revenues and expenditures can be compared with related budget amounts without any significant reconciling items. 2. Reconciliation ofFund Balance- Budgetary to US GAAP Basis The Schedule ofRevenues and Expenditures and Changes in Fund Balance ofthe Homeless and Housing Measure H Special Revenue Fund has been prepared on a modified accrual basis of accounting in accordance with US GAAP. The Budgetary Comparison Schedule has been prepared on a budgetary basis, which is different from US GAAP. The following schedule is a reconciliation ofthe budgetary and US GAAP hind balances as ofJune 30, 2021: Fund Balance budgetary basis $ 166,594,000 - Encumbrances and other reserves 13,337,000 Subtotal 179,931,000 Adjustments: Change in revenue accruals (894,000) Fund Balance US GAAP basis $ 179,037,000 - 13 SUPPLEMENTAL INFORMATION IN ACCORDANCE WITH GOVERAMENTAUDITING STANDARDS 14 Q RCA fifalsoil Rice LLP 2355CrenshawBlvd. Suite ISO Telephone: 310.792.4640 Torrance, CA 90501 Facsimile: 310,792.4331 CertifiedPublicAccountantsandAdvisors wwwbcawatsonricm Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit ofthe Schedule ofRevenues and Expenditures and Changes in Fund Balance ofthe Homeless and Housing Measure H Special Revenue Fund Performed in Accordance with Governnzene’Audidng Standards Ms. Arlene Barrera Auditor-Controller County ofLos Angeles Los Angeles, California We have audited, in accordancewith auditingstandards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in GovernmentAuditing Standards issued by the ComptrollerGeneral ofthe United States, the Schedule ofRevenuesand Expenditures and Changes in Fund Balance (the Schedule) for Homeless and Housing Measure H (Measure H) Special Revenue Fund ofthe County of Los Angeles (the County) for the fiscal year ended June 30, 2021, and the related notes to the Schedule, which collectively comprised the County’s Schedule, and have issued our report thereon dated December3, 2021. Internal controlover FinancialReporting In planning and performing our audit of the financial statements, we considered the County’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the Schedule, but not for the purpose of expressing an opinion on the effectiveness ofthe County’s internal control. Accordingly, we do not express an opinion on the effectiveness ofthe County’s internal control. A deficiencyin internalcontrol exists when the design oroperation ofa control does not allow management or employees in the normal course ofperforming their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material it’ealrness is a deficiency, or combination ofdeficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the County’s Schedule will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination ofdeficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we considerto be material weaknesses. However, material weaknesses may exist that have not been identified. 15 Compliance and OtherMatters As part of obtaining reasonable assurance about whether the County’s Schedule is free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination ofthe amounts on the Schedule. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance or other matters that is required to be reported under GovernmentAuditing Standards. Purpose ofthis Report The purpose ofthis report is solely to describe the scope ofour testing ofinternal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 3ej fGan2jà,LLP Torrance, California December3, 2021 16 Q RCA I4aIsoii fl 2355CrenshawBlvd. Suite150 T&ephone: 310.792.4640 Torrance, CA 90501 Facsimile:310.792.4331 Certified PublicAccountantsaridAdvisors www.bcawatsonrice.com Independent Auditor’s Report on Compliance with Requirements Applicable to Revenues and Expenditures and Changes in Fund Balance ofthe Homeless and Housing Measure H Special Revenue Fund iu Accordance with the MeasureH, Ordinance 2017-001, Chapter4.73 to theLosAngeles ‘ounty (‘ode — Transaction and Use Taxto Preventand Combat Homelessness Ms. Arlene Barrera Auditor-Controller County ofLos Angeles Los Angeles, California Report on Compliance We have audited the County of Los Angeles’ (the County) compliance of the Homeless and Housing Measure H (Measure I-I) revenues and expenditures and changes in fund balance with the compliance requirements described in the Measure N, Ordinance 20]7-001, Chapter 1. 73 to the Los Angeles Countj’ Code Transaction and Use Tax to Prevent and Combat Homelessness (Measure H Ordinance), for the — fiscal year ended June 30, 2021, Management’sResponsibility The County’s management is responsible for compliance with the requirements of laws and regulations applicable to the Measure H revenues and expenditures. Auditor’sResponsibility Our responsibility is to express an opinion on the County’s compliance with Measure H revenues and expenditures based on our audit ofthe compliance requirements referred to above. We conducted ouraudit of compliance in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GoverrnnentAziditingStandards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on Measure H revenues and expenditures occurred. An audit includes examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on the Measure ii revenues and expenditures. However, our audit does not provide a legal determination ofthe County’s compliance with those requirements. Opinion on MeasureHRevenues andExpenditures In ouropinion, the County complied, in all material respects, with the compliance requirements referred to above that could have adirect and material effect on the Measure H revenues and expenditures forthe fiscal year ended June 30, 2021. 17 Report on Internal Control over Compliance Management ofthe County is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the requirements that could have a direct and material effect on the Measure H revenues and expenditures as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose ofexpressing an opinion on compliance and to test and report on internal control over compliance in accordance with the Measure H, Ordinance 2017-00], Chapter 4.73 tot/ic Los4ngcles County Code Transaction and Use Tax to Prevent — andCombat Ho,nele,sne.cs. hut not for the purpose ofexpressing an opinion on the effectivenessofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation ofa control over compliance does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent, or detect and correct, noncompliance with a compliance requirement on a timely basis. A material tieakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, ordetected and corrected, on atimely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a compliance requirement ofthe Measure 1-I revenues and expenditures that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Purpose ofthis Report The purpose ofthis report on internal control over compliance is solely to describe the scope ofour testing ofinternal control over compliance and the results ofthat testing based on the requirements ofthe Measure I-I Ordinance. Accordingly. this report is not suitable for any other purpose. 3cn LfcOC,LLP Torrance, California December 3,2021 18 County ofLos Angeles Homeless and Housing Measure H Special Revenue Fund Current Year Audit Findings and Recommendations For the Year Ended June 30, 2021 There are no current year audit findings. County ofLos Angeles Homeless and Housing Measure H Special Revenue Fund SlalLis ofPrior-YearAudit Findings and Recommendations There were no prior year audit findings. 20 Attachment II COUNTY OF LOS ANGELES Independent Accountant’s Report MEASURE H (Ordinance 2017-001, Chapter 4.73 to the Los Angeles County Code — Transaction and Use Tax to Prevent and Combat Homelessness) For the Fiscal Year Ended June 30, 2021 Q RCA Watsoil Rico LLP Certified Public Accountants and Advisors 2355 Crenshaw Blvd. Suite io Torrance, CA 90501 t: (310) 192-4640 f: (310) 792-4140 Q BCA I4atsohi fl 2355CrenshawBlvd. Suite 150 Telephone: 310.792.4640 Torrance] CA 90501 Facsimile: 310.792.4331 Certified PublicAccountantsand Advisors w.bcawatsonri.com INDEPENDENT ACCOUNTANT’S REPORT Ms. Arlene Barrera Auditor-Controller County ofLos Angeles Los Angeles, California We have performed the procedures enumerated below, which were agreed to by the County ofLos Angeles (the County), solely to assist the County in determining whether the twelve (12) County Departments and outside agencies that received Homeless and Housing Measure H (Measure H) Special Revenue Funds were in compliance with the Measure H Ordinance 2017-001, Chapter 4.73 to the Los Angeles County Code Transaction and Use Tax to Prevent and Combat Homelessness terms and conditions for the year — ended June 30, 2021. The twelve County Departments and outside agencies are as follows: the Chief Executive Office (CEO), the Department of Children and Family Services (DCFS), the Department of Health Services (DHS), the Department ofMental Health (DM11), the Department ofPublic Health (DPI-I), the Department ofPublic Social Services (DPSS), Public Defender (PD), Workforce Development, Aging and Community Services (WDACS), the Los Angeles Sheriff’s Department (LASD), the Department of Consumer and Business Affairs (DCBA), the Los Angeles Community Development Authority (LACDA) (formerly known as the Community Development Commission), and the Los Angeles Homeless Services Authority (LAHSA). The management of the twelve County Departments and outside agencies are responsible for compliance with the Measure H Ordinance requirements. The County has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of determining whether the foregoing County Departments and outside agencies are in compliance with the Measure H Ordinancerequirements forthe fiscal year ended June 30, 2021. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user ofthis report and may not meet the needs ofall users ofthis report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures performed and the results ofthose procedures are as follows: 1. We performed the agreed-upon test procedures as described below utilizing the American Institute of Certified Public Accountants (AICPA) Sampling Guidelines. Results CEO CEO’s Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (16.78%) and non-payroll expenditures (83.22%). Based on the AICPA Sampling Guidelines, we selected a sample size oftwo months for payroll expenditures for the months ofSeptember 2020 and March 2021 and performed detailed testing ofall employees charged to the program, which represented 17.10% oftotal payroll expenditures. In addition, we selected 17 transactions for non-payroll/program expenditures, which represented 42.87%oftotal non-payroll expenditures. No exceptions were found. DCFS DCFS’ Measure H expenditures for the year ended June 30, 2021 consist of DCFS subcontractor expenditures (100%). Based on the AICPA Sampling Guidelines, we selected a sample size of 6 subconlractor expense reports for non-payroll/program expenditures, equivalent to 46.66% ofthe total subcontractor expenditures. No exceptions were found. OHS DHS’ MeasureH expenditures fortheyearended June 30,2021 consistofpayroll expenditures (9.54%) and non-payroll expenditures (90.46%). Based on the AICPA Sampling Guidelines. we selected a sample size of one month for payroll expenditures for the month of January 2021 and performed detailed testing of all employees charged to the program. which represented 8.19% of total payroll expenditures. In addition, we selected 33 expenditures reports for non-payroll cost reimbursement contract expenditures and 7 fee-for-service invoice contract expenditures represenling 22.76% and 15.58%ofthe total non-payroll expenditures, respectively. From each expenditure report. we selected one transaction (33 for cost reimbursements and 7 for fee-for-service) to verify the adequacy of supporting back-up documentation. No exceptions were found. DM11 DMH’s Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (66.64%) and non-payroll subcontractor expenditures (33.36%). Based on the AICPA Sampling Guidelines, we selected a sample size of two months consisting of four pay periods for payroll expenditures for the months of September 2020 and March 2021 and performed detailed testing of30 employees who charged their payroll expenditures to the program, which represented 16.64% oftotal payroll expenditures. In addition, we reviewed four non-payroll subcontractor claimed expenditures (one claim per quarter), which represented 5.74% oftotal subcontractor expenditures. No exceptions were found. OPH DPH’s Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (9.73%) and non-payroll expenditures (90.27%). Based on the AICPA Sampling Guidelines, we selected a sample size oftwo months for payroll expenditures for the months ofNovember 2020 and April 2021 and performed detailed testing ofall employees charged to the program during these two months. which represented 17.73% oftotal payroll expenditures. In addition, we selected 4 transactions for non-payroll contractor expenditures, which represented 13.60% of total non-payroll contractor expenditures. and 36 non-payroll recipient expenditures, randomly selected from the months ofJuly 2020 through June 2021. which represented 33.21% oftotal non-payroll recipient expenditures. The non-payroll recipient expendituresconsistofmonthly recurring payments for health services forvarious clients. No exceptionswere found. DPSS DPSS’ Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (22.30%) and subcontractor expenditures (77.70%). Based on the AICPA Sampling Guidelines, we selected a sample size oftwo months for payroll expenditures for the months ofNovember 2020 and April 2021 and perfonned detailed testing of 22 employees who charged payroll expenditures to the program, which represents 17.52% oftotal payroll expenditures. We also selected 25 transactions for subcontractor expenditures. which represented 52.93% oftotal subcontractor expenditures. From each subcontractor claim/invoice, we selected one transaction to verify the adequacy ofsupporting back-up documentation. The subcontractor expenditures represent payments made to subcontractors of the Department of Health Services for the implementation of the Benefit Advocacy Program for People Experiencing Homelessness or at Risk of Hoinelessness. No exceptions were found. 2 PD PD’s Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (71.73%) and non-payroll and subcontractor expenditures (28.27%). Based on the AICPA Sampling Guidelines, we selected a sample size oftwo months for payroll expenditures forthe months ofOctober 2020 and March 2021 and performed detailed testing of all employees who charged payroll to the program during these two months, which represented 16.96% oftotal payroll expenditures. In addition, we randomly selected seven non-payroll/subcontractor transactions/expenditures, which represented 83.03% ofthe total non-payroll/subcontractorexpenditures. No exceptions were found. WDACS WDACS Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (11.40%) and subcontractor expenditures (88.60%). Based on the AICPA Sampling Guidelines, we selected a sample size oftwo months for payroll expenditures for the months ofSeptember 2020 and March 2021 and performed detailed testing of four employees who charged payroll to the program, which represented 7.54% of total payroll expenditures. In addition, we randomly selected 40 subcontractor expense reports for non-payroll/program expenditures, equivalent to 41.33% ofthe total subcontractor expenditures. From these expense reports we selected 40 transactions to verify the adequacy ofback-up supporting documents, which represented 11.67% ofthe selected subcontractor expense reports. No exceptions were found. LACDA LACDA’s expenditures for the year ended June 30, 2021 consist ofpayroll expenditures (4.55%) and non-payroll expenditures (95.45%). Based on the AICPA Sampling Guidelines, we selected a sample size ofone month for payroll expenditures forthe month ofMarch 2021 and performed detailed testing of all employees charged to the program. In addition, we selected 40 transactions for non-payroll expenditures,which represented 45.91%oftotal non-payroll expenditures. Noexceptionswere found. LAHSA LAHSA’s Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (11.71%) and non-payroll/subcontractor expenditures (88.29%). Based on the AICPA Sampling Guidelines, we selected a sample size ofone month of payroll expenditures for the month of March 2021 and performed detailed testing of 50 randomly selected employees, which represented 13% of the payroll employees charged to the program. In addition, we selected 60 expenditures reports for non-payroll/subcontractor expenditures, which represented 7.31% of total non-payroll/subcontractor expenditures. From the selected expenditures reports, we furtherselected 60 individual transactions for detailed testing. In addition to the foregoing detailed test procedures, we also reviewed LAHSA’s monitoring procedures and monitoring reports ofits subcontractors to ensure that claimed expenditures were in accordance with the respective contracts/agreements and the expenditures claimed were allowable and within budget ofthe specific strategies. No exceptions were found. LASD LASD’s Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (100%). Based on the AICPA SamplingGuidelines, we selected a sample sizeoftwo months consisting of four pay periods for payroll expenditures for the months of October 2020 and March 2021 and performed detailed testing ofall employees charged to the program, which represented 16.84% oftotal payroll expenditures. No exceptions were found. 3 DCBA DCBA’s Measure H expenditures for the year ended June 30, 2021 consist of payroll expenditures (2.5%) and subcontractor expenditures (97.5%) incurred in fiscal year 2020-202), but paid from the fiscal year 2019-2020 encumbrance/allocation. Based on the AICPA Sampling Guidelines, we selected a sample size oftwo months consisting offour pay periods for payroll expenditures for the months of January 2021 and March 2021 and performed detailed testing ofall employees charged to (he program. which represented 66.67% of total payroll expenditures. In addition, we selected two (2) subcontractor’s invoices and its supporting documents, which represented 51.88% of (lie total subcontractor’s expenditures paid from the fiscal year 2019-2020 encumbrance/allocation. No exceptions were found. 2. We verified that the Department/Agency or their contractors and subcontractors providing Measure H services maintained: a. Documentation to support the amount billed forproviding Measure H program services tindertheir contract. Results CEO For the two months selected, we traced payroll expenditures to labor distribution reports, agreed percentage oftime charged on the labor distribution report to the timesheets, and agreed pay rates charged on the labor distribution report to pay rates in the Employee Sequence Register. We also confirmed that timesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the 17 non-payroll transactions selected, we agreed the expenditures to back-up supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. DCFS For the 6 subcontractor transactions selected, we agreed the expenditure to back-tip supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. DHS For the one month selected, we traced payroll expenditures to labor distribution reports. agreed hours charged on the labor distribution report to the timesheets. and agreed pay rates charged on the labor distribution report to pay rates in the Employee Sequence Registers. We also confirmed that tiinesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the 33 non-payroll transactions for reimbursement contracts and 7 non-payroll transactions for fee-for-service contracts selected for detailed testing, we agreed the expenditure to back-up supporting documentation, confirmed thai the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. DM11 For the two months selected, we traced payroll expenditures to labor distribution report. agreed hours charged on the labor distribution report to the timesheets, and agreed pay rates charged on the labor distribution report to pay rates in the Employee Sequence Registers. We also confirmed 4 thattimesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the four non-payroll subcontractor claimed expenditures selected, we agreed the expenditure to back-up supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. DPH For the two months selected, we traced payroll expenditures to labor distribution reports, agreed hours charged on the labor distribution report to the timesheets, and agreed pay rates charged on the labor distribution report to pay rates in the Employee Sequence Register. We also confirmed that timesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the 4 non-payroll contractor transactions selected, we agreed the expenditure to back-tip supporting documentation, confiniied that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. For the 36 non-payroll recipient expenditures transactions selected, we agreed the expenditure to back-up supporting documentation, confirmed that the expenditures were properly approved, and properly recorded in the accounting system. No exceptions were found. DPSS For the two months selected, we traced payroll expenditures to labor distribution reports, agreed hours charged on the labor distribution report to the timesheets, and agreed pay rates charged on the labor distribution report to pay rates in the Employee Sequence Register. We also confirmed that timesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the 25 selected subcontractor expenditures, we agreed the expenditure to backup supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. PD For the two months selected, we traced payroll expenditures to labor distribution reports, agreed payroll expenditures on the labor distribution report to the pay stubs, and agreed salaries on the labor distribution report to salaries in the Employee Sequence Register. We also confirmed that timesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the seven non-payroll transactions selected, we agreed the expenditure to back-tip supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. WDACS For the two months selected, we traced payroll expenditures to labor distribution reports, agreed hours charged on the labor distribution report to the timesheets, and agreed pay rates charged on the labor distribution report to pay rates in the Employee Sequence Register. We also confirmed that timesheets were signed by the employee and approved by the supervisor. No exceptions were found. 5 For The 40 subcontractor expenditures selected, we agreed the expenditure to back-up supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. LACDA For the one month selected, we traced payroll expenditures to labor distribution reports. agreed hours charged on the labor distribution report to the timesheets. and agreed pay rates charged on the labor distribution report to pay rates in the employee payroll register. We also confirmed that timesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the 40 non-payroll/program transactions selected, we agreed the expenditure to back-up supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. LAHSA For the one month payroll expenditures and the 50 randomly selected employees, we traced payroll expenditures to labor distribution reports, agreed hours charged on the labor distribution report to the timesheets, and agreed pay rates charged on the labor distribution report to pay rates in the employee personnel files. We also confirmed that timesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the 60 non-payroll/subcontractor expenditures selected for detailed testing, we agreed the expenditures to back-up supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. LASD For the two months selected, we traced payroll expenditures to labor distribution reports, agreed hours charged on the labor distribution report to the tiinesheets, and agreed pay rates charged on the labor distribution report to pay rates in the employee personnel files. We also confirmed that tiniesheets were signed by the employee and approved by the supervisor. No exceptions were found. DCBA For the two months selected, we traced payroll expenditures to labor distribution reports. agreed hours charged on the labor distribution report to the timesheets, and agreed pay rates charged on the labor distribution report to pay rates in the employee personnel files. We also confirmed that tiinesheets were signed by the employee and approved by the supervisor. No exceptions were found. For the two subcontractor’s invoices paid from fiscal year 2019-2020 encumbrance/allocation, we agreed the expenditures to back-tip supporting documentation, confirmed that the expenditures were properly approved, and verified that the expenditures were properly recorded in the accounting system. No exceptions were found. h. Records to verify that funds were used for allowable expenditures in compliance with the requirements ofMeasure H. 6 Results CEO For the two months selected, we confirmed that the payroll expenditures were specific to the cost ofAdministration ofthe Measure H program. No exceptions were found. Forthe 17 transactions ofnon-payroll expenditures selected, we confirmed with no exceptions that the non-payroll expenditures were specific to the cost ofAdministration ofthe Measure H programs and the following Measure H strategies. • Strategy C7 Subsidize Employment for Homeless Adults - • Strategy E7 Strengthen the Coordinated Entry System ofthe Measure H Program. - • Strategy E8 Enhance the Emergency Shelter System - DCFS For the 6 transactions ofsubcontractorexpenditures selected, we confirmed thatthese expenditures were specific to Strategy Al Homeless Prevention Programs for Families and Strategy A5 — — Homeless Prevention Programs for Individuals ofthe Measure H Program. No exceptions were found. DHS Forthe one month ofpayroll expenditures selected, 33 transactions ofnon-payroll expenditures for reimbursement contracts, and seven non-payroll expenditure transactions for fee-for-service contracts, we confirmed with no exceptions that the payroll expenditures and non-payroll expenditures were specific to the following Measure H strategies. • Strategy A5 Homeless Prevention Programs for Individuals - • Strategy B3 Partners with Cities to Expand Rapid Re-Housing - • Strategy B7 Interim/Bridge Housing for Those Exiting Institutions - • Strategy C4 Establish a Countywide SSI Advocacy Program for People - Experiencing Homelessness or at Risk ofHomelessness • Strategy D2 Expansion ofJail In Reach - • Strategy D7 Provides Services and Rental Subsidies for Permanent Supportive Housing - • Strategy E6 Countywide Outreach System - • Strategy E8 Enhance the Emergency Shelter System - DM11 For the two months of payroll expenditures selected and four subcontractor expenditures/claims selected, we confirmed with no exceptions that the payroll expenditures and subcontractor expenditures were specific to the following Measure H strategies. • Strategy B7 Interim/Bridge Housing for those Exiting Institutions - • Strategy C4 Establish a Countywide SSI Advocacy Program for People Experiencing - Flomelessness or at risk ofFlomelessness • Strategy D7 Provide Services and Rental Subsidies for Permanent Supportive Housing - • Strategy ES Enhance the Emergency Shelter System - 7 DPII For the two months ofpayroll expenditures. four subcontractor expenditures. and 36 non-payroll recipient expenditures transactions se[ected. we confirmed with no exceptions that the payroll and non-payroll/subcontractorexpenditures were specific to the following Measure H strategies: • Strategy B7 Interim/Bridge Housing for those Exiting Institutions — • Strategy D7 Provide Services and Rental Subsidies for Permanent Supportive Housing — • Strategy E6 Countywide Outreach System — • Strategy ES Enhance the Emergency Shelter System — DPSS For the two months of payroll expenditures and 25 transactions of subcontractor expenditures selected, we confirmed that these expenditures/expenditures were specific to the Strategy C4 — Establish a Countywide SSI Advocacy Program for People Experiencing Homelessness or at risk ofHomelessness ofthe Measure H Program. No exceptions were found. PD For the two months of payroll expenditures and seven non-payroll/subcontractor expenditures selected, we confirmed that these expenditures/expenditures were specific to the Strategy D6 — Criminal Record Clearing Project ofthe Measure H Program. No exceptions were found. WDACs For the two months of payroll expenditures and 40 subcontractor expenditures/expenditures selected, we confirmed that these expenditures/expenditures were specific to the Strategy C7 — Subsidize Employment for Homeless Adults of the Measure H Program. No exceptions were found. LACDA Forthe one month ofpayroll expendituresand 40 transactions ofnon-payroll expenditures selected. we confirmed thai the payroll and non-payroll expenditures were specific to Strategy 84—Facilitate Utilization ofFederal [lousing Subsidies and Strategy F? Preserve Current Affordable Housing — and Promote the Development of Affordable [lousing for Homeless Faiiiilies and Individuals of the Measure H Program. No exceptions were found. LAHSA For the one month of payroll expenditures and 50 selected employees and 60 non- payroll/subcontractor expenditures, we confirmed with no exceptions that these expenditures/expenditures were specific to the following Measure I-I strategies: • Strategy Al Homeless Prevention Programs for Families — • Strategy AS Homeless Prevention Programs for Individuals — • Strategy 83—Partners with Cities to Expand Rapid Re-Housing • Strategy B7 Interim/Bridge Housing for Those Exiting Institutions — • Strategy E6 Countywide Outreach System — • Strategy E7 Strengthen the Coordinated Entry System — • Strategy E8 Enhance the Emergency Shelter System — • Strategy El4 Enhanced Services for Transition Age Youth — 8 LASD For the two months of payroll expenditures selected, we confirmed that the payroll expenditures were specific to Strategy D2 Expansion of Jail In Reach of the Measure H program. No — exceptions were found. DCBA For the two months of payroll expenditures and the subcontractor’s expenditures paid from the fiscal year 2019-2020 encumbrance/allocation, we confirmed with no exceptions that these expenditures/expenditures were specific to the following Measure H strategies: • Strategy Al Homeless Prevention Programs for Families — • Strategy A5 Homeless Prevention Programs for Individuals — c. Internal controls over financial reporting and compliance with provisions of laws, regulations, contracts or grant agreements. Results CEO For the two months of payroll expenditures and 17 transactions of non-payroll expenditures selected, the supporting documents showed evidence ofbeing reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board ofSupervisors for FY 2020-21. No exceptions were found. DCFS For the 6 transactions of subcontractor expenditures/expenditures selected, the supporting documents showed evidence of being reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-21. No exceptions were found. DHS For the one month ofpayroll expenditures selected, the supporting documents showed evidence of being reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-21. No exceptions were found. For the 33 non-payroll expenditures selected for reimbursement contracts and seven non-payroll expenditures selected for fee-for-service contracts, the supporting documents showcd evidence of being reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-21. No exceptions were found. DM11 For the two months ofpayroll expenditures selected, the supporting documents showed evidence ofbeing reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-21. No exceptions were found. For the four non-payroll subcontractor claimed expenditures selected, the supporting documents showed evidence ofbeing reviewed and properly authorized, and the expenditures tested complied 9 with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-21. No exceptions were found. DPH For the two months ofpayroll expenditures, four non-payroll contractor expenditures. and 36 non- payroll recipient expenditures transaction selected, the supporting documents showed evidence of being reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-2!. No exceptions were found. DPss For the two months of payroll expenditures and 25 transactions of subcontractor expenditures selected, the supporting documents shoed evidence of being reviewed and properly authorized. and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board ofSupervisors for FY 2020-21. No exceptions were found. PD For the two months of payroll expenditures and seven transactions of non-payroll/subcontractor expenditures selected, the supporting documents showed evidence ofbeing reviewed and properly authorized, and the expenditures tested complied with the Measure Ii Expenditure Plan approved by the Board ofSupervisors for FY 2020-2!. No exceptions were found. WDACS For the two months of payroll expenditures selected, the supporting documents showed evidence ofbeing reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-21. No exceptions were found. For the 40 transactions ofsubcontractor expenditures selected, the supporting documents showed evidence ofbeing reviewed and properly atithorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board ofSupervisors for FY 2020-21. No exceptions were found. LACDA Forthe one month ofpayroll expendittires and 40 transactions ofnon-payroll expenditures selected. the supporting documents showed evidence of being reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-21. No exceptions were found. LAHSA Forthe one month ofSO employee payroll expenditures selected, the supporting documents showed evidence ofbeing reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board ofSupervisors forFY 2020-21. No exceptions were found. For the 60 non-payroll/subcontractor expendittires selected, the supporting documents showed evidence ofbeing reviewed and properly atithorized. and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board ofSupervisors forFY 2020-21. No exceptions were found. 10 LASD For the two months ofpayroll expenditures selected, the supporting documents showed evidence ofbeing reviewed and properly authorized, and the expenditures tested complied with the Measure H Expenditure Plan approved by the Board of Supervisors for FY 2020-2]. No exceptions were found. DCBA For the two months ofpayroll expenditures selected and for the subcontractor’s expenditures paid from the fiscal year 2019-2020 encumbrance/allocation, the supporting documents showed evidence ofbeing reviewed and properly authorized, and the expenditures tested complied with the Measure H ExpenditLire Plan approved by the Board ofSupervisors forFY 2020-21. No exceptions were found. d. Minimum encryption standards required by the County of Los Angeles Board of Supervisors’ Policy 5.200, Contractor Protection ofElectronic County Information (July 2016). Results We found that all 12 County Departments and outside Agencies complied with minimum encryption standards required by the County ofLos Angeles Board of Supervisors’ Policy 5.200, Contractor Protection ofElectronic County Information (July2016). 3. We verified that the Measure H funds are being used for the specific strategies approved by the Board. Results CEO CEO was allocated $3,511,000 of Measure H funds to be used for Administration of the Measure H program, $800,000 of Measure H funds to be used for Strategy C7 Subsidize Employment for — Homeless Adults, $2,567,000 of Measure H funds to be used for Strategy E7 Strengthen the — Coordination Entry System, and $2,100,000 ofMeasure H funds to be used for Strategy E8 Enhance — the Emergency Shelter System ofthe Measure H program based on the Measure H Expenditure Plan approved by the Board ofSupervisors in FY 2020-21. CEO’s Measure H expenditures in FY 2020-21 totaled $13,414,180, which consisted of $2,019,681 used for Administration, $800,000 used forStrategy C7 Subsidize Employment for Homeless Adults, — $8,494,499 used for Strategy E7 Strengthen the Coordination Entry System, and $2,100,000 used for — Strategy E8 Enhance the Emergency Shelter System. No exceptions were found. — DCFS DCFS was allocated $500,000 ofMeasure H funds to be used for Strategy Al Homeless Prevention — Programs for Families and $300,000 to be used for Strategy AS Homeless Prevention Programs for — Individuals based on the Measure H Expenditure Plan approved by the Board of Supervisors in FY 2020-21. DCFS’ Measure H expenditures in FY 2020-21 totaled $121,987, which consisted of$87,469 used for Strategy Al Homeless Prevention Programs for Families and $34,518 used for Strategy AS — — Homeless Prevention Programs for Individuals. No exceptions were found. II DHS DI-IS was allocated $131,416,000 ofMeasure H funds to be used for the following eight strategies: Measure H Strategy Allocation 4.5 Homeless Prevention Programs for tndividuals S 1,500,000 83 Partner with Cities to Expand Rapid Re-Housing 150,000 B7 Lnterim/Bridge Housing for Those Exiting Institutions 21,878,000 Establishinga Countywide SSI Advocacy Program for People Experiencing C4 3,951,000 Homelessness orAt-Risk ofHomelessness D2 Expansion ofJailIn Reach 1,870,000 D7 Provide Services and Rental Subsidies for Permanent Supportive Housing 48,627,255 E6 Countywide Outreach System 20,881,745 E8 Enhance the Emergency Shelter System 32,558,000 Total S 131,416,000 UnderStrategy A5. OHS provides screening and a targeted intervention to single adults and youth who are currently at risk ofbecoming homeless and have been screened arid identified as having high risk factors. Under Strategy 83, OHS provides a time-limited intervention including financial assistance/subsidies and supportive services so that participants will be able to successfully maintain housing without long- term assistance. Under Strategy 87, DHS provides clients with complex health and/or behavioral health conditions who need a higher level of support services than is available in most shelter settings. Interim housing includes stabilization housingand recuperative care. Some interim housingprograms provideenhanced onsite mental health services. Under Strategy C4, 01-IS expands and integrates physical and mental health clinical services lo support County-wide Benefits Entitlements Services Team, including technical assistance, training, case consultation, record retrieval services, care coordination and comprehensive evaluations. Under Strategy 02, DHS expands Jail In Reach to make it available to all homeless people incarcerated in a Los Angeles Countyjail. Under Strategy 07. DI-IS increases existing work orders and executes new work orders with Supportive I-lousing Services Master Agreement vendors to provide Intensive Case Management Services. Under Strategy E6, DHS aims at improving outreach efforts to homeless individuals and families on the streets and in encampments in Los Angeles County. DI-IS developed a dispatch and tracking technology infrastructure for outreach requests. expanded Service Planning Area (SPA)-level and macro coordination of outreach teams through Coordinated Entry System Outreach Coordinators, launch and implemented Multidisciplinary Outreach teams to better assist unsheltered homeless individuals through expanded irniltidisciplinaty outreach capacity, and support and expand general outreach staffing in all SPAs to farther support outreach bandwidth. Under Strategy ES. OHS provides interim housing to serve clients with complex health and/or behavioral health conditions who need a higher level ofsupport services than is available in most shelter settings. 12 DHS’ Measure H expenditures in FY 2020-21 totaled $122,858,626 and were specific forthe strategies listed below. No exceptions were found. MeasureH MeasureH Disbunementby Actual Stntegy County Expenditures Difference AS HomelessPreventionProgramsforIndividuals S 175,222 S 175,222 5 - B3 PartnerwithCitiestoExpandRapidRe-Housing 86,063 86,063 - B7 tnlerim’RridgeHousingforThoseExitingtnstxiutions 21,878,000 2! 878,000 - EstablishingaCountywideS51Advocacy ProgramforPeopleExpenencing Cl 3 146 256 3 146256 HomelessnessorAt-RiskofHomelessness , , . - D2 Expansionoffail[nReach [,104557 1,104,557 - 07 ProvideservicesandRentalsubsidiesforPermanentsupportive Housing 48,284,258 48.284,258 - E6 CountywideOutreachsystem [9,507.257 lq,507,257 - ES EnhancetheEmergencyShellerSystem 28,677,013 28,677,013 - Total S 122,858,626 S 122,858,626 $ - DM11 DMH was allocated $10.858,000 ofMeasure H funds to be used for the following four strategies: MeasureH Strategy Allocation B7 Interim/bridgeHousing for Those ExitingInstitutions S 72,000 Establishing a Countywide SSI Advocacy Program for People Experiencing (N 1,101,000 Homelessness or At-Risk ofHomelessness D7 Provide Services and Rental Subsidies for Permanent Supportive Housing 9,613,000 ES Enhance the Emergency Shelter System 72,000 Total $ 10,858,000 Under Strategy B7, DMH serves clients with complex health and/or behavioral health conditions who need a higher level of support services than is available in most shelter settings. Interim housing includesstabilization housing and recuperative care. Some interim housingprograms provideenhanced onsite mental health services. UnderStrategy C4. DMH expands and integrates physical and mental health clinical services to support Countywide Benefits Entitlements Services Team, including technical assistance, training, case consultation, record retrieval services, care coordination and comprehensive evaluations. Under Strategy D7. DM11 provides a local rent subsidy to ensure that housing units are affordable to people who are homeless. All strategy D7 clients receive Intensive Case Management Services and is matched to a rental subsidy. Based on client need. chents receive specialty mental health services through the Housing Full Service Partnership Program, in addition to substance use disorder outreach and assessment and service navigation. Under Strategy ES, DMH provides interim housing to serve clients with complex health and/or behavioral health conditions who need ahigher level ofsupport services than is available in most shelter settings. DMH’s Measure H expenditures in FY 2020-21 totaled $3,683,948 and were specific forthe strategies listed below. No exceptions were found. 13 _________________ MeasureH Strategy Expenditures B7 Interim/Bridge Housing for Those ExitingInstitutions $ 72,000 Establishinga Countywide 551 Advocacy Program for People Experiencing CM 822 833 Homelessness or At-Risk ofHomelessness D7 Provide Services and Rental Subsidies for Permanent Supportive Housing 2,717,115 E8 Enhance the Emergency Shelter System 72,000 Total $ 3,683,948 DPH DPH was allocated $12.403,000 ofMeasure H funds to he used for the following four strategies: Measure H Stntegy Allocation 87 InterimiBridge Housing for Those Exiting Institutions S 9,415,000 D7 Provide Services and Rental Subsidies for Permanent Supportive Housing 1,564,000 E6 Countywide Outreach System 756,000 ES Enhance the Emergency Shelter System 668,000 Total $ t2,403,000 Under Strategy B7, DPH Substance Abuse Prevention and Control (SAPC) Recovery Bridge Housing (RBI-I) serves individuals who are homeless at treatment discharge and who choose abstinence-based housing for up to 90 days. Under Strategy D7, DPH supports the increase in access to supportive housing by funding high quality tenant services and, when necessary. a local rent subsidy to ensure that housing units are affordable to people who are homeless. Under Strategy E6. DPH develops and implements a plan to leverage current outreach efforts and creates a countywide network of multidisciplinary, integrated street-based teams to identify, engage and connect homeless individuals to interim and/or permanent housing and supportive services. Linder Strategy ES. DPH provides support to enhance the Emergency Shelter System. DPH’s Measure H expenditures in FY 2020-21 totaled 510,916.776 and were specific for the strategies listed below. No exceptions were found. Measure H Stnitegy Expenditures 87 Interim/Bridge Housing for Those Exiting Institutions 5 9,103,079 D7 Provide Services and Rental Subsidies for Permanent Supportive Housing 1,105,040 E6 Countywide Outreach System 252.722 ES Enhance the Emergency Shelter System 455,935 Total S 10,916,776 14 DPSS DPSS was allocated $4,600,000 of Measure H funds to be used for Strategy C4 Establish a — Countywide SSI Advocacy Program for People Experiencing Homelessness orat risk ofHornelessness based on the Measure H Expenditure Plan approved by the Board ofSupervisors in FY 2020-21. UnderStrategy C4, DPSS expands and integrates physical and mental health clinical servicesto support Countywide Benefits Entitlements Services Team, including technical assistance, training, case consultation, record retrieval services, care coordination and comprehensive evaluations. DPSS’ Measure H expenditures in FY 2020-21 totaled $3,031,826 specific for Strategy C4 Establish — a Countywide 551 Advocacy Program for People Experiencing Homelessness or At-Risk of l-lomelessness. No exceptions were found. PD PD was allocated $2,394,000 of Measure H funds to be used for Strategy D6 Criminal Record — Clearing Project based on the Measure H Expenditure Plan approved by the Board ofSupervisors in FY 2020-21. Under Strategy D6, PD provides field-based service to homeless and formerly homeless adults who have criminal records by connecting them with legal services to assist with record clearing and other legal barriers to achieving stable housing and employment. PD’s Measure H expenditures in FY 2020-21 totaled $2,158,634 and were specific for Strategy D6 — Criminal Record Clearing Project. No exceptions were found. WDACS WDACS was allocated $7,498,000 of Measure H funds to be used for Strategy C7 Subsidized — Employment for Homeless Adults based on the Measure H Expenditure Plan approved by the Board of Supervisors in FY 2020-21. Under Strategy C7, WDACS provides Transitional Employment Services to Los Angeles County residents who experience multiple barriers to employment, including thosc who are homeless, former offenders and/or disconnected youth (Job Seekers and Participants). Funding for this strategy expands existing workforce development models, such as the Los Angeles Regional Initiative Enterprise, throughout the County to provide transitional subsidized employment services to homeless individuals. WDACS’s Measure H expenditures in FY 2020-21 totaled $6,373,345 for Strategy C7 Subsidized — Employment for Homeless Adults. No exceptions were found. LACDA LACDA wasallocated $8,422,000 ofMeasure H hinds to be used for Strategy B4 Facilitate Utilization - of Federal Housing Subsidies based on the Measure 1-I Expenditure Plan approved by the Board of Supervisors in FY 2020-21. Under Strategy B4, LACDA conducts the development and preservation ofhomeless housing in areas ofthe County where there is an urgent need for housing under Measure H eligible Ilomeless Initiative Strategy P7 Preserve Current Affordable Housing and Promote the Development of Affordable - Housing for Homeless Families and Individuals. 15 LACDA’s Measure H expenditures in FY 2020-21 totaled $7,859,010 for Strategy 84 Facilitate - Utilization of Federal Housing Subsidies. Also, during FY 2020-2021, LACDA’s Measure H expenditures for Strategy F7 totaled $6,394,142, which was coming from the unspent allocation/advances from prior-year. No exceptions were found. LAHSA LAHSA was allocated $222,306,000 ofMeasure I-I funds to be used for the following eight strategies: Measure H Strategy Allocation Al Homeless Prevention Programs for Families S 8,991,000 A5 Homeless Prevention Programs for Individuals 4,083,000 B3 Partner with Cities to Expand Rapid Re-Housing 75,368,000 87 Interim/Bridge Housing for Those Exiting Institutions 4,627,000 E6 Countywide Outreach System I 1,611,000 E7 Strengthen the Coordinated Entry System 27,069,000 E8 Enhance the Emergency Shelter System 76,058,000 E14 Enhanced Services for Transition Age Youth 14,499,000 Total $ 222,306,000 Under Strategy Al, the funding is dedicated to shelter diversion services within Coordinated Entn System (CES) for families. This will allow CES for family providers to have specialized diversion staffand limited financial assistance to help families identify alternative housing arrangements outside the homeless system or return to a community ofcare outside ofLos Angeles County. Under Strategy A5. LAI-ISA provides screening and a targeted intervention to single adults and youth who are currently at risk ofbecoming homeless and have been screened and identified as having high risk factors. Under Strategy 83. LAHSA provides time-limited intervention, including financial assistance/subsidies and supportive services so that participants will be able to successfully maintain housing without long-term assistance. Under Strategy B7. LAHSA increases the bed rate for these shelters specifically reserved for people exiting institutions allows for a specialized level ofcare at the facilities. These are safe, reserved, low- barrier and supporti•e 24-hour interim housing beds for persons exiting institutions but who are not in need ofspecialized and high-level care. Under Strategy E6, LAH.SA aims at improving outreach efforts to homeless individtials and families on the streets and in encampments in Los Angeles County. LAI-ISA developed a dispatch and tracking technology infrastructure for outreach requests, expanded SPA-level and macro coordination of outreach teams through CES Outreach Coordinators, launch and implemented Multidisciplinary Outreach teams to better assist unsheltered homeless individuals through expanded multidisciplinary outreach capacity, and support and expand general outreach staffing in all SPAs to further suppor oLitreach bandwidth. Under Strategy E7, with the implementation ofthe CES, all people in need ofhousing and services can be screened, triaged, and connected to resources, based upon service need and availability. LAHSA will expand regional coordination foreach population system, create domestic violence liaisons, expand 16 housing navigation, create housing location program, create training academy and provisions of technical assistance to agencies, create legal services system, and create a representative payee program. Under Strategy ES, LAHSA increases the bed rate for LAHSA’s existing shelters to allow for higher quality services in the shelters resulting in better outcomes. Adding beds to the system decreases the gap in shelter services and these safe, low-barrier and supportive 24-hour crisis housing beds are designed to facilitate permanent housing placement. Under Strategy F14, the funding will expand and enhance the resources to house and serve transitional age youth experiencing hoinelessness. The County disbursed $163,822,288 to LAHSA in FY 2020-21, and LABSA’sMeasureH expenditures in FY 2020-21 totaled $173,816,378 and were specific for the strategies listed below. No exceptions were found. MeasureH MeasureH Disbursementby Actual Strategy County Expenditures Difference Al Homeless Prevention Programs forFamilies 5,128,456 S 5,518,453 (389,997) AS Homeless Prevention Programs forIndividuals 4,187,626 4,333,801 (146,175) 33 Partnerth Cities to ExpandRapid Re-Housing 51,095,474 51,991,006 (895,532) 37 Interim/Bridge HousingforThose Exitingffistitutions 3,950,679 3,967,927 (17,248) E6 CountywideOutreach System 12,118,625 12,790,568 (671,943) E7 Strengthen the Coordinated Entry System 12,978,458 12,640,715 337,743 E8 Enhance the Emergency Shelter System 62,131,172 69,499,726 (7,368,554) EI4 Enhanced Services forTransitionAge Youth 12,231,798 13,074,182 (842,384) Total S 163,822,288 S 173,816,378 S (9,994,090) The $9,994,090 difference represents fourth quarter subcontractor expenditures, which were submitted late and werenot included in theCounty’s FY 2020-21 actual expenditures. These expenditures will be reported by the CoLinty as FY 2021-22 Measure H expenditures. LASD LASD was allocated $465,000 ofMeasure H funds to be used for Strategy D2 Expansion ofJail In- — Reach based on the Measure H Expenditure Plan approved by the Board of Supervisors in FY 2020- 21. Under Strategy D2, LASD expands Jail In-Reach to make it available to all homeless people incarcerated in a Los Angeles Countyjail. LASO’s Measure H expenditures in FY 2020-21 totaled $429,937 and were specific for Strategy D2 — Expansion ofJail In-Reach. No exceptions were found. DCBA DCBA was allocated $25,000 ofMeasure H finds to be used for Strategy Al —Homeless Prevention Programs for Families and $25,000 of Measure H funds to be used for Strategy A5 Homeless — Prevention Programs for Individuals, based on the Measure H Expenditure Plan approved by the Board ofSupervisors in FY 2020-21. DCBA’s Measure H expenditures in FY 2020-21 totaled $2,000,000, which consisted of$l,000,000 used for Strategy Al Homeless Prevention Programs for Families and $1,000,000 used for Strategy — 17 AS Homeless Prevention Programs for Individuals. Out of the total $2,000,000 expenditures, — $1,950,000 was paid from the fiscal year 2019-20 encumbrance/allocation. No exceptions were found. 4. We verified that the service levels/strategies reported for each Department and Agency are accurate and that the funds were used for the specific purpose ofeach strategy. Results CEO Based on our procedures performed for the two months ofpayroll/administrative expenditures and 17 transactions of non-payroll/program expenditures selected, the service levels reported by CEO were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. DCFS Based on our procedures performed for the six transactions ofnon-payroll/subcontractor expenditures selected, the service levels reported by DCFS were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. DHS For the one month ofpayroll expenditures, 33 non-payroll reimbursement contract expenditures, and 7 non-payroll fee-for-service expenditures selected, the service levels reported by DHS were accurate and the funds were used for the specific purpose ofthe Measure H strategies. No exceptions were found. DMH Based on our procedures performed for the two months ofpayroll expenditures and four subcontractor expenditures selected, the service levels reported by DMH were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. DPH For the two months ofpayroll expenditures, 4 non-payroll contractor expenditures, and 36 non-payroll recipient expenditures selected, the service levels reported by DPH were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. DPSS For the two months of payroll expenditures and 25 transactions ofsubcontractor’s cost selected, the service levels reported by DPSS were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. PD For the two months of payroll expenditures and seven transactions of non-payroll/subcontractor expenditures selected, the service levels reported by PD were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. WDACS For the two months ofpayroll expenditures and 40 transactions ofsubcontractor expenditures selected, the service levels reported by WDACS were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. 18 LACDA Based on our procedures performed for the one month ofpayroll expenditures and 40 transactions of non-payroll expenditures selected, the service levels reported by LACDA were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. LAHSA For the one month ofpayroll expenditures and 60 non-payrolli•subcontractor expenditures selected. the service levels reported by LAHSA were accurate and the funds were used for the specific purpose of the Measure H strategies. No exceptions were found. LASD For the two months ofpayroll expendituresselected, the service levels reported by LASD were accurate and the fundswereused forthe specific purpose ofthe Measure H strategy. No exceptions were found. DCBA For the two months ofpayroll expenditures selected and the subcontractor’s expenditures paid from fiscal year 2019-2020 encumbrance/allocation, the service levels reported by DCBA were accurate and the funds were used for the specific purpose ofthe Measure H strategy. No exceptions were found. We were engaged by the County of Los Angeles to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Lnstitute orCertified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively on the twelve County Departments’ and outside agencies’ compliance with the Measure H, Ordinance 2017-001, Chapter 4.73 to the Los Angeles County Code Transaction and Use Taxto Prevent and Combat Homelessness for — the year ended June 30, 2021. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the County of Los Angeles, County Departments’, and outside agencies’, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the County of Los Angeles and the twelve County Departments and outside agencies: CEO, DCFS. DHS, DMH, DPH, DPSS, PD, WDACS. LASD. DCBA. LACDA. and LAHSA and is not intended to be. and should not be used by anyone otherthan these specified parties. 3c k1fanPx,LLP Torrance. CA December3,2021 19