Audit 354675

FY End
2024-06-30
Total Expended
$5.90M
Findings
8
Programs
1
Organization: Arirang Housing,inc. (CA)
Year: 2024 Accepted: 2025-04-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
555959 2024-001 Significant Deficiency Yes N
555960 2024-002 Significant Deficiency Yes L
555961 2024-001 Significant Deficiency Yes N
555962 2024-002 Significant Deficiency Yes L
1132401 2024-001 Significant Deficiency Yes N
1132402 2024-002 Significant Deficiency Yes L
1132403 2024-001 Significant Deficiency Yes N
1132404 2024-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $176,231 Yes 2

Contacts

Name Title Type
XKK5RMVLLYS3 Noel Sweitzer Auditee
3232311104 Jacob Buehler Auditor
No contacts on file

Notes to SEFA

Title: 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, 2024 is $5,723,900.

Finding Details

Finding reference number: 2024-001 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: 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: $4,846 Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation did not make the required 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 amount of $29,076 per year. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded by $4,846 at June 30, 2024. Cause: The Corporation's deposits to the reserve for replacements were $4,846 less than the required deposits by HUD. 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 January 3, 2025 for the delinquent deposits.
Finding reference number: 2024-002 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 2024-002: For the year ended June 30, 2023, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on December 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.
Finding reference number: 2024-001 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: 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: $4,846 Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation did not make the required 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 amount of $29,076 per year. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded by $4,846 at June 30, 2024. Cause: The Corporation's deposits to the reserve for replacements were $4,846 less than the required deposits by HUD. 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 January 3, 2025 for the delinquent deposits.
Finding reference number: 2024-002 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 2024-002: For the year ended June 30, 2023, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on December 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.
Finding reference number: 2024-001 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: 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: $4,846 Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation did not make the required 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 amount of $29,076 per year. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded by $4,846 at June 30, 2024. Cause: The Corporation's deposits to the reserve for replacements were $4,846 less than the required deposits by HUD. 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 January 3, 2025 for the delinquent deposits.
Finding reference number: 2024-002 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 2024-002: For the year ended June 30, 2023, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on December 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.
Finding reference number: 2024-001 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: 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: $4,846 Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation did not make the required 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 amount of $29,076 per year. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded by $4,846 at June 30, 2024. Cause: The Corporation's deposits to the reserve for replacements were $4,846 less than the required deposits by HUD. 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 January 3, 2025 for the delinquent deposits.
Finding reference number: 2024-002 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 2024-002: For the year ended June 30, 2023, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on December 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.