Audit 386470

FY End
2025-06-30
Total Expended
$496.81M
Findings
3
Programs
15
Organization: Louisiana Housing Corporation (LA)
Year: 2025 Accepted: 2026-02-10

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1173039 2025-002 Material Weakness Yes P
1173040 2025-002 Material Weakness Yes P
1173041 2025-002 Material Weakness Yes P

Contacts

Name Title Type
G9MAZAU3T661 Craig Gannuch Auditee
2257638824 Michelle Cunningham, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Louisiana Housing Corporation under programs of the federal government for the year ended June 30, 2025. The information presented in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Louisiana Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Louisiana Housing Corporation.
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Louisiana Housing Corporation elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
Program Title / Assistance Listing Number / Amount Provided Emergency Solutions Grant Program 14.231 $ 2,317,869 Continuum of Care Program 14.267 $13,770,228 Low-Income Home Energy Assistance Program 93.568 $61,948,585 Weatherization Assistance for Low-Income Persons 81.042 $2,408,841 Emergency Rental Assistance Program 21.023 $1,992,431 $ 82,437,954
Per financial statements: Grant funds disbursed (non-operating) $ 256,210,452 Less: State grant funds disbursed (non-operating) $(3,361,643) Add: Mortgage loans issued (capitalized) $227,577,854 Add: HUD Risk Sharing Mortgage Loans $103,750 Add: Administrative costs within operating expenses $16,283,602 Total per schedule of expenditures of federal awards $496,814,015
In accordance with terms of the loans funded under the HOME Program, program income generated during the fiscal year ended June 30, 2025, totaled $915,548. The income was comprised of mortgage loan collections of principal and interest. Program income used during the fiscal year ended June 30, 2025, totaled $3,589,744. That amount was used to reduce the amount of federal funds that would have been drawn to fund various single family and multifamily projects. The expenditure of the program income is included in the accompanying schedule of expenditures of federal awards.
LRS 33:9022 defines “cooperative endeavor” as any form of economic development assistance between and among the State, its local governmental subdivisions, political corporations, public benefit corporations, the United States government, or its agencies, or any public or private association, corporation, or individual. The term cooperative endeavor includes cooperative financing, cooperative development, or any form of cooperative economic development activity. The Corporation has entered into a cooperative endeavor agreement with the State of Louisiana Office of Community Development (OCD), Disaster Recovery Program, implementing a Community Development Block Grant. The Office of Community Development (OCD) expenditures totaled $222,477,819 during the fiscal year ended June 30, 2025 and are properly included on the accompanying Schedule of Expenditures of Federal Awards.
Program Title / Assistance Listing Number / June 30, 2025 Balance HOME Investment Partnerships Program 14.239 $ 185,078,152 Community Development Block Program 14.228 $462,176,379 National Housing Trust Fund 14.275 $26,608,533 Emergency Rental Assistance Program 21.023 $8,716,020 Tax Credit Assistance Program – ARRA 14.258 $65,237,556 Neighborhood Stabilization Program 14.228 $7,175,797 Housing Finance Agency Risk Sharing Program 14.188 $207,500 $ 755,199,937

Finding Details

During the audit we noted the Corporation lacked adequate internal controls and had insufficient staffing over the financial and accounting processes. This resulted in errors, mispostings, untimely reconciliations, and a lack of understanding of the nature and accounting treatment of certain transactions. Effective internal controls over financial reporting require the Corporation to maintain staff with the skill and experience to ensure transactions are recorded accurately, and financial accounts are reconciled timely and accurately. Without proper internal controls there is an increased risk that errors and omissions could occur and remain undetected. This condition could lead to inaccurate financial reporting and potential noncompliance with applicable laws and regulations. We recommend that the Corporation strengthen its internal control environment by evaluating staffing levels, providing training to existing staff, and developing and implementing policies and procedures to ensure timely reconciliations, accurate transaction recording, and ongoing management review.