FAC Explorer

Audit 365307

FY End
2024-12-31
Total Expended
$2.10B
Findings
8
Programs
26
Organization: Housing Authority of the City of Los Angeles (CA)
Year: 2024 Accepted: 2025-08-29
Auditor: Berman Hopkins Wright & Laham CPAS and Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575243 2024-001 Significant Deficiency - E
575244 2024-001 Significant Deficiency - E
575245 2024-001 Significant Deficiency - E
575246 2024-002 - - E
1151685 2024-001 Significant Deficiency - E
1151686 2024-001 Significant Deficiency - E
1151687 2024-001 Significant Deficiency - E
1151688 2024-002 - - E

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $1.03B - 0
14.871 Section 8 Housing Choice Vouchers $72.30M Yes 1
14.267 Continuum of Care Program $52.91M Yes 0
21.019 Coronavirus Relief Fund $34.60M Yes 0
14.872 Public Housing Capital Fund $32.70M - 0
14.850 Public and Indian Housing $25.80M Yes 1
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $5.98M - 0
14.889 Choice Neighborhoods Implementation Grants $4.50M - 0
14.879 Mainstream Vouchers $2.86M Yes 1
14.241 Housing Opportunities for Persons with Aids $2.19M - 0
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $2.02M - 0
14.888 Lead-Based Paint Capital Fund Program $1.11M - 0
14.896 Family Self-Sufficiency Program $1.04M - 0
93.310 Trans-Nih Research Support $395,957 - 0
14.191 Multifamily Housing Service Coordinators $357,886 - 0
14.895 Community Project Funding $353,485 - 0
17.258 Wioa Adult Program $335,822 - 0
10.727 Inflation Reduction Act Urban & Community Forestry Program $237,536 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $226,725 - 0
14.892 Choice Neighborhoods Planning Grants $166,901 - 0
17.278 Wioa Dislocated Worker Formula Grants $128,335 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $73,671 - 0
14.218 Community Development Block Grants/entitlement Grants $46,000 - 0
66.312 Environmental Justice Government-to-Government (ejg2g) Program $27,848 - 0
32.011 Affordable Connectivity Outreach Grant Program $17,780 - 0
93.558 Temporary Assistance for Needy Families $4,096 - 0

Contacts

Name Title Type
DTQNBHNCNXR3 Patricia Kataura Auditee
2132525438 Laura Anne Pray Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The Housing Authority did not elect to use the 10-percent de minimis indirect cost rate. The schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Title: Note 2 Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The Housing Authority did not elect to use the 10-percent de minimis indirect cost rate. The Housing Authority did not elect to use the 10-percent de minimis indirect cost rate.
Title: Note 3 Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The Housing Authority did not elect to use the 10-percent de minimis indirect cost rate. The total outstanding loan balance at December 31, 2024, was $11,993,154. The loans were provided by the U.S Department of Housing and Urban Development for the Jordan Downs Redevelopment and are not subject to federal continuing compliance requirements and are not reported on the Schedule.

Finding Details

Finding 2024-001
Condition: Out of a population of approximately 43,000 tenants for the Housing Voucher Cluster, 41 tenant files were tested and the following exceptions were noted: • 6 files had late recertification performed of which 1 missed getting an annual recertification in 2024; • 2 files were missing 214 form documentation for household members; • 1 file had an incorrect income calculation; • 1 file had an incorrect payment standard; and • 1 file had a missing valid 9886 form. Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation to ensure proper procedures are being followed and that the Housing Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Housing Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Housing Authority experienced staffing and operational challenges during the year and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to recertifications. The Housing Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. View of Responsible Officials: See Corrective Action Plan.
Finding 2024-001
Condition: Out of a population of approximately 43,000 tenants for the Housing Voucher Cluster, 41 tenant files were tested and the following exceptions were noted: • 6 files had late recertification performed of which 1 missed getting an annual recertification in 2024; • 2 files were missing 214 form documentation for household members; • 1 file had an incorrect income calculation; • 1 file had an incorrect payment standard; and • 1 file had a missing valid 9886 form. Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation to ensure proper procedures are being followed and that the Housing Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Housing Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Housing Authority experienced staffing and operational challenges during the year and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to recertifications. The Housing Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. View of Responsible Officials: See Corrective Action Plan.
Finding 2024-001
Condition: Out of a population of approximately 43,000 tenants for the Housing Voucher Cluster, 41 tenant files were tested and the following exceptions were noted: • 6 files had late recertification performed of which 1 missed getting an annual recertification in 2024; • 2 files were missing 214 form documentation for household members; • 1 file had an incorrect income calculation; • 1 file had an incorrect payment standard; and • 1 file had a missing valid 9886 form. Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation to ensure proper procedures are being followed and that the Housing Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Housing Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Housing Authority experienced staffing and operational challenges during the year and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to recertifications. The Housing Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. View of Responsible Officials: See Corrective Action Plan.
Finding 2024-002
Condition: Out of a population of approximately 6,000 tenants for the Public Housing program, 41 tenant files were tested and the following exceptions were noted: • 2 files had late recertification performed of which 1 missed getting an annual recertification in 2024; • 1 file was missing 214 form documentation for household members; • 1 file had a missing valid 9886 form; and • 1 file did not have support of an inspection being performed during the year. Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation to ensure proper procedures are being followed and that the Housing Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. In addition, 24 CFR 5.705 requires each unit be periodically inspected. Cause: The Housing Authority experienced staffing and operational challenges during the year and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility. Additionally, a few of the exceptions might have been caused by oversight or misfiling of documents. Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to recertifications. The Housing Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. View of Responsible Officials: See Corrective Action Plan.
Finding 2024-001
Condition: Out of a population of approximately 43,000 tenants for the Housing Voucher Cluster, 41 tenant files were tested and the following exceptions were noted: • 6 files had late recertification performed of which 1 missed getting an annual recertification in 2024; • 2 files were missing 214 form documentation for household members; • 1 file had an incorrect income calculation; • 1 file had an incorrect payment standard; and • 1 file had a missing valid 9886 form. Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation to ensure proper procedures are being followed and that the Housing Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Housing Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Housing Authority experienced staffing and operational challenges during the year and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to recertifications. The Housing Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. View of Responsible Officials: See Corrective Action Plan.
Finding 2024-001
Condition: Out of a population of approximately 43,000 tenants for the Housing Voucher Cluster, 41 tenant files were tested and the following exceptions were noted: • 6 files had late recertification performed of which 1 missed getting an annual recertification in 2024; • 2 files were missing 214 form documentation for household members; • 1 file had an incorrect income calculation; • 1 file had an incorrect payment standard; and • 1 file had a missing valid 9886 form. Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation to ensure proper procedures are being followed and that the Housing Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Housing Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Housing Authority experienced staffing and operational challenges during the year and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to recertifications. The Housing Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. View of Responsible Officials: See Corrective Action Plan.
Finding 2024-001
Condition: Out of a population of approximately 43,000 tenants for the Housing Voucher Cluster, 41 tenant files were tested and the following exceptions were noted: • 6 files had late recertification performed of which 1 missed getting an annual recertification in 2024; • 2 files were missing 214 form documentation for household members; • 1 file had an incorrect income calculation; • 1 file had an incorrect payment standard; and • 1 file had a missing valid 9886 form. Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation to ensure proper procedures are being followed and that the Housing Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Housing Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Housing Authority experienced staffing and operational challenges during the year and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to recertifications. The Housing Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. View of Responsible Officials: See Corrective Action Plan.
Finding 2024-002
Condition: Out of a population of approximately 6,000 tenants for the Public Housing program, 41 tenant files were tested and the following exceptions were noted: • 2 files had late recertification performed of which 1 missed getting an annual recertification in 2024; • 1 file was missing 214 form documentation for household members; • 1 file had a missing valid 9886 form; and • 1 file did not have support of an inspection being performed during the year. Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation to ensure proper procedures are being followed and that the Housing Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. In addition, 24 CFR 5.705 requires each unit be periodically inspected. Cause: The Housing Authority experienced staffing and operational challenges during the year and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility. Additionally, a few of the exceptions might have been caused by oversight or misfiling of documents. Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to recertifications. The Housing Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. View of Responsible Officials: See Corrective Action Plan.