July 28, 2025
Cognizant or Oversight Agency for Audit
The City of Inglewood respectfully submits the following corrective action plan for the year ended
September 30, 2024.
Name and address of independent public accounting firm:
Lance, Soll & Lunghard, LLP
203 N. Brea Blvd, Suite 203
Brea, CA 92821
...
July 28, 2025
Cognizant or Oversight Agency for Audit
The City of Inglewood respectfully submits the following corrective action plan for the year ended
September 30, 2024.
Name and address of independent public accounting firm:
Lance, Soll & Lunghard, LLP
203 N. Brea Blvd, Suite 203
Brea, CA 92821
Audit period: 10/01/2023 to 09/30/2024
The finding from the September 30, 2024 schedule of findings and questioned costs is discussed below with the corrective
action plan.
Finding 2024-001: Delays in Financial Reporting
Evaluation of Finding: Material Weakness and Noncompliance
Criteria: Management is responsible for providing timely and accurate financial information. Because the City has
expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal
entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within
the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.
Per HUD REAC reporting requirements and 24 CFR Part 5, Subpart H of the Uniform Guidance, auditees must submit
the reporting package, including the Schedule of Findings and Questioned Costs, to the Federal Audit Clearinghouse
within 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period, whichever
comes first.
Condition: The City did not submit its financial statements and single audit reports to the FAC within the required
timeframe for the fiscal year ended September 30, 2024. The financial statements and single audit reports were
submitted after the deadline of June 30, 2025.
The City failed to submit the Real Estate Assessment Center (REAC) reporting package to the U.S. Department of
Housing and Urban Development (HUD) within the required timeframe for the fiscal year ended September 30, 2024.
The financial statements and single audit reports were also submitted after the deadline of June 30, 2025.
Cause: The financial reporting was delayed primarily due to the finalization of the Inglewood Basketball Entertainment
Center (IBEC) transactions, which required extensive review and adjustments to ensure accuracy and compliance.
Additionally, the resolution of compliance matters related to the sale of land parcels held by the Successor Agency
further contributed to the delay. These complex processes necessitated thorough examination with specialists and
coordination with attorneys, ultimately impacting the timely completion of the financial reports.
Effect: The late submission of the financial statements, single audit, and REAC reports impairs the ability of the
federal awarding agencies and pass-through entities to monitor the City’s compliance with federal requirements and to
make informed decisions regarding the continuation or modification of federal awards. The late submission also
results in noncompliance with the Uniform Guidance and HUD REAC, and increases the risk of fraud, waste, and
abuse of federal funds.
Context: The City’s financial statements and single audit reports are used by the federal awarding agencies and
pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with
federal requirements.
Repeat Finding: No
Recommendation: LSL does not anticipate this finding to be repeated in the next fiscal year, as the IBEC
transaction is expected to be fully resolved. With the completion of this transaction and the resolution of
compliance matters related to the sale of land held by the Successor Agency, the processes that contributed to
the delay in financial reporting will no longer be a factor. This will enable more timely and accurate financial
reporting moving forward.
Management Response: Management acknowledges the auditors finding regarding delays in financial reporting,
including the late issuance of financial statements, and the timing challenges caused by the accounting treatment
of complex or non-routine transactions.
We recognize that timely financial reporting is essential to upholding public trust, supporting informed policy
decisions, and ensuring compliance with applicable accounting standards and regulatory deadlines. The delays
identified during the audit were primarily attributable to the following factors:
• The occurrence of a complex and non-recurring transaction during the fiscal year that required
significant time for proper technical analysis and documentation.
• Dependencies on information from third-party agencies, consultants, and internal departments that
impacted the timing of final reporting deliverables.
Corrective Action Plan: In response to this finding, the City is taking the following steps to improve the
timeliness and reliability of its financial reporting process:
1. Staff Development and Capacity: The City has initiated efforts to strengthen the Finance Department’s
capacity by filling key vacancies, cross-training staff, and providing targeted professional development on
complex accounting topics relevant to governmental reporting.
2. Proactive Technical Review: The City will identify and evaluate complex or unusual transactions on a
proactive basis throughout the fiscal year and, where appropriate, consult with the City’s external auditors or
subject matter experts prior to year-end.
3. Process and Timeline Enhancements: The City is updating its year-end financial close calendar to incorporate
additional review periods for high-complexity areas and to better align internal workflows and external
reporting timelines.
4. Improved Coordination and Documentation: The Finance Department is implementing enhanced coordination
protocols with other departments and external service providers, as well as strengthening internal
documentation procedures to ensure timely and accurate support for financial entries and disclosures.
The City remains committed to enhancing its financial reporting processes and internal controls. Management
believes these corrective actions will lead to more timely issuance of the City’s financial statements in future
periods and will continue to monitor progress and make adjustments as necessary.
The name of the contact person responsible for the corrective action: Luisana Gomez, Accounting Manager
If the Cognizant or Oversight Agency for the Audit has questions regarding the corrective action plan, please contact
Luisana Gomez, Accounting Manager lgomez@cityofinglewood.org