Audit 36660

FY End

2022-12-31

Total Expended

$5.14M

Findings

4

Programs

1

Organization: Hong Lok (AZ)

Year: 2022 Accepted: 2023-04-06

Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
34505	2022-001	Significant Deficiency	-	F
34506	2022-001	Significant Deficiency	-	F
610947	2022-001	Significant Deficiency	-	F
610948	2022-001	Significant Deficiency	-	F

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$248,090	Yes	1

Contacts

Name	Title	Type
WJM4DCKW4217	Nancy Bills	Auditee
6029970013	Pamela Eggert	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. The Corporations summary of significant accounting policies is presented inNote 1 in the Corporations basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activityof Hong Lok (the Corporation) under programs of the federal government for the year ended December 31,2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of theCorporation, it is not intended to and does not present the financial position, changes in net assets or cash flowsof the Corporation. The Corporation received federal awards directly from federal agencies.

Finding Details

Finding 2022-001

Criteria: As part of the regulatory agreement with HUD, the Project is subject to physical inspections to be performed on the property in order to determine that appropriate maintenance is being performed to create a safe living environment for tenants. Condition: Fourteen units had wiring exposure and lacked safety precautions that were identified during the inspection period. The units are required to be properly maintained and all safety hazards should be addressed immediately. Cause: During the inspection there were health and safety matters that were identified as part of the inspection resulting in the score. Effect: The Project is out of compliance and tenants of the Project may not be receiving the quality of housing to which they are entitled. Recommendation: As part of the inspection process, the Project should ensure that all health and safety matters are appropriately addressed. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-001

Criteria: As part of the regulatory agreement with HUD, the Project is subject to physical inspections to be performed on the property in order to determine that appropriate maintenance is being performed to create a safe living environment for tenants. Condition: Fourteen units had wiring exposure and lacked safety precautions that were identified during the inspection period. The units are required to be properly maintained and all safety hazards should be addressed immediately. Cause: During the inspection there were health and safety matters that were identified as part of the inspection resulting in the score. Effect: The Project is out of compliance and tenants of the Project may not be receiving the quality of housing to which they are entitled. Recommendation: As part of the inspection process, the Project should ensure that all health and safety matters are appropriately addressed. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-001

Criteria: As part of the regulatory agreement with HUD, the Project is subject to physical inspections to be performed on the property in order to determine that appropriate maintenance is being performed to create a safe living environment for tenants. Condition: Fourteen units had wiring exposure and lacked safety precautions that were identified during the inspection period. The units are required to be properly maintained and all safety hazards should be addressed immediately. Cause: During the inspection there were health and safety matters that were identified as part of the inspection resulting in the score. Effect: The Project is out of compliance and tenants of the Project may not be receiving the quality of housing to which they are entitled. Recommendation: As part of the inspection process, the Project should ensure that all health and safety matters are appropriately addressed. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-001

Criteria: As part of the regulatory agreement with HUD, the Project is subject to physical inspections to be performed on the property in order to determine that appropriate maintenance is being performed to create a safe living environment for tenants. Condition: Fourteen units had wiring exposure and lacked safety precautions that were identified during the inspection period. The units are required to be properly maintained and all safety hazards should be addressed immediately. Cause: During the inspection there were health and safety matters that were identified as part of the inspection resulting in the score. Effect: The Project is out of compliance and tenants of the Project may not be receiving the quality of housing to which they are entitled. Recommendation: As part of the inspection process, the Project should ensure that all health and safety matters are appropriately addressed. Views of Responsible Officials: Management agrees with the finding.