Audit 331057

FY End
2023-06-30
Total Expended
$5.93M
Findings
12
Programs
1
Organization: Arirang Housing,inc. (CA)
Year: 2023 Accepted: 2024-12-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
513094 2023-001 Significant Deficiency - N
513095 2023-001 Significant Deficiency - N
513096 2023-002 Significant Deficiency - L
513097 2023-002 Significant Deficiency - L
513098 2023-003 Significant Deficiency - L
513099 2023-003 Significant Deficiency - L
1089536 2023-001 Significant Deficiency - N
1089537 2023-001 Significant Deficiency - N
1089538 2023-002 Significant Deficiency - L
1089539 2023-002 Significant Deficiency - L
1089540 2023-003 Significant Deficiency - L
1089541 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $209,557 Yes 3

Contacts

Name Title Type
XKK5RMVLLYS3 Noel Sweitzer Auditee
3232311104 Michael Turner Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate. The balance of the capital advance at June 30, 2023 is $5,723,900.

Finding Details

Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: N – Reserve for Replacement Deposits Finding resolution status: Resolved Universe population size: 12 deposits Sample size information: 12 deposits Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,846 Statement of condition 2023-001: During the year ended June 30, 2023, the Corporation did not make the require deposits to the reserve for replacements. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to make deposits to the reserve for replacements in the required amount of $29,076. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded. Cause: The Corporation did not have sufficient funds in the operating cash account to make the deposit. Recommendation: Management should make a deposit to the reserve for replacements for $4,846 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management made a deposit of $4,846 on July 20, 2023 for the delinquent deposits.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: N – Reserve for Replacement Deposits Finding resolution status: Resolved Universe population size: 12 deposits Sample size information: 12 deposits Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,846 Statement of condition 2023-001: During the year ended June 30, 2023, the Corporation did not make the require deposits to the reserve for replacements. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to make deposits to the reserve for replacements in the required amount of $29,076. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded. Cause: The Corporation did not have sufficient funds in the operating cash account to make the deposit. Recommendation: Management should make a deposit to the reserve for replacements for $4,846 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management made a deposit of $4,846 on July 20, 2023 for the delinquent deposits.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-002: The Corporation did not furnish HUD with a complete annual financial report within 90 days following the year ended June 30, 2023. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to furnish to HUD within 90 days following the fiscal year end a complete annual financial report based upon the examination of the books and records of the Corporation prepared in accordance with GAAP and with the requirements of HUD, and audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. Effect: The Corporation is not in compliance with the HUD regulatory agreement. Cause: The predecessor auditor did not comply with engagement terms and failed to notify management of his decision to not proceed with the engagement in a timely manner. Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to HUD. No further action is required.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-002: The Corporation did not furnish HUD with a complete annual financial report within 90 days following the year ended June 30, 2023. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to furnish to HUD within 90 days following the fiscal year end a complete annual financial report based upon the examination of the books and records of the Corporation prepared in accordance with GAAP and with the requirements of HUD, and audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. Effect: The Corporation is not in compliance with the HUD regulatory agreement. Cause: The predecessor auditor did not comply with engagement terms and failed to notify management of his decision to not proceed with the engagement in a timely manner. Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to HUD. No further action is required.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-003: For the year ended June 30, 2022, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 30 days after receipt of the auditor's report on October 6, 2022. The audited financial statements were submitted to the Federal Audit Clearinghouse on July 5, 2024. Criteria: Pursuant to 2 CFR 200.512(a), the Corporation is required to electronically submit audited financial statements to the Federal Audit Clearinghouse within the earlier of 30 days after receipts of the auditor's report or nine months after the end of the audit period. Effect: The Corporation is not in compliance with the federal reporting requirements. Cause: The predecessor auditor did not comply with engagement terms and failed to notify management of his decision to not proceed with the engagement in a timely manner. Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to the Federal Audit Clearinghouse. No further action is required.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-003: For the year ended June 30, 2022, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 30 days after receipt of the auditor's report on October 6, 2022. The audited financial statements were submitted to the Federal Audit Clearinghouse on July 5, 2024. Criteria: Pursuant to 2 CFR 200.512(a), the Corporation is required to electronically submit audited financial statements to the Federal Audit Clearinghouse within the earlier of 30 days after receipts of the auditor's report or nine months after the end of the audit period. Effect: The Corporation is not in compliance with the federal reporting requirements. Cause: The predecessor auditor did not comply with engagement terms and failed to notify management of his decision to not proceed with the engagement in a timely manner. Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to the Federal Audit Clearinghouse. No further action is required.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: N – Reserve for Replacement Deposits Finding resolution status: Resolved Universe population size: 12 deposits Sample size information: 12 deposits Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,846 Statement of condition 2023-001: During the year ended June 30, 2023, the Corporation did not make the require deposits to the reserve for replacements. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to make deposits to the reserve for replacements in the required amount of $29,076. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded. Cause: The Corporation did not have sufficient funds in the operating cash account to make the deposit. Recommendation: Management should make a deposit to the reserve for replacements for $4,846 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management made a deposit of $4,846 on July 20, 2023 for the delinquent deposits.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: N – Reserve for Replacement Deposits Finding resolution status: Resolved Universe population size: 12 deposits Sample size information: 12 deposits Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,846 Statement of condition 2023-001: During the year ended June 30, 2023, the Corporation did not make the require deposits to the reserve for replacements. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to make deposits to the reserve for replacements in the required amount of $29,076. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded. Cause: The Corporation did not have sufficient funds in the operating cash account to make the deposit. Recommendation: Management should make a deposit to the reserve for replacements for $4,846 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management made a deposit of $4,846 on July 20, 2023 for the delinquent deposits.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-002: The Corporation did not furnish HUD with a complete annual financial report within 90 days following the year ended June 30, 2023. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to furnish to HUD within 90 days following the fiscal year end a complete annual financial report based upon the examination of the books and records of the Corporation prepared in accordance with GAAP and with the requirements of HUD, and audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. Effect: The Corporation is not in compliance with the HUD regulatory agreement. Cause: The predecessor auditor did not comply with engagement terms and failed to notify management of his decision to not proceed with the engagement in a timely manner. Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to HUD. No further action is required.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-002: The Corporation did not furnish HUD with a complete annual financial report within 90 days following the year ended June 30, 2023. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to furnish to HUD within 90 days following the fiscal year end a complete annual financial report based upon the examination of the books and records of the Corporation prepared in accordance with GAAP and with the requirements of HUD, and audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. Effect: The Corporation is not in compliance with the HUD regulatory agreement. Cause: The predecessor auditor did not comply with engagement terms and failed to notify management of his decision to not proceed with the engagement in a timely manner. Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to HUD. No further action is required.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-003: For the year ended June 30, 2022, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 30 days after receipt of the auditor's report on October 6, 2022. The audited financial statements were submitted to the Federal Audit Clearinghouse on July 5, 2024. Criteria: Pursuant to 2 CFR 200.512(a), the Corporation is required to electronically submit audited financial statements to the Federal Audit Clearinghouse within the earlier of 30 days after receipts of the auditor's report or nine months after the end of the audit period. Effect: The Corporation is not in compliance with the federal reporting requirements. Cause: The predecessor auditor did not comply with engagement terms and failed to notify management of his decision to not proceed with the engagement in a timely manner. Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to the Federal Audit Clearinghouse. No further action is required.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-003: For the year ended June 30, 2022, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 30 days after receipt of the auditor's report on October 6, 2022. The audited financial statements were submitted to the Federal Audit Clearinghouse on July 5, 2024. Criteria: Pursuant to 2 CFR 200.512(a), the Corporation is required to electronically submit audited financial statements to the Federal Audit Clearinghouse within the earlier of 30 days after receipts of the auditor's report or nine months after the end of the audit period. Effect: The Corporation is not in compliance with the federal reporting requirements. Cause: The predecessor auditor did not comply with engagement terms and failed to notify management of his decision to not proceed with the engagement in a timely manner. Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to the Federal Audit Clearinghouse. No further action is required.