Finding Text
Finding reference number: 2024-004 Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects, No. 14.155 071-35795 Auditor non-compliance code: N. Special Tests and Provisions Finding resolution status: In Process. Universe population size: The universe population size is not applicable to the finding. Sample size population: The sample size information is not applicable to the finding. Statistically valid sample: Not applicable. Name of federal agency: U.S Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition 2024-004: Hollywood House Limited Partnership did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending December 31, 2024. Criteria: Pursuant to the regulatory agreements, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, Hollywood House Limited Partnership shall furnish HUD with a complete annual financial report based upon an examination of the books and records of Hollywood House Limited Partnership prepared in accordance with GAAP, audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards and any additional requirements of HUD. Effect: Hollywood House Limited Partnership is not compliance with the regulatory agreement. Cause: Due to the dissolution of the sole member of the Former General Partner, Former Special Limited Partner, and prior management agent, the management of Hollywood House Limited Partnership was assigned to a court ordered receiver and financial statements were not completed timely. Recommendation: Hollywood House Limited Partnership should file the December 31, 2024 financial statements as soon as possible and should ensure the annual financial report is filed within ninety (90) days in future periods. Management's response: Management concurs with the finding and the recommendation. Management is in the process of implementing internal control processes to ensure compliance with applicable regulations. The audit report for the year ended December 31, 2024 has been submitted to HUD. No further action is required.