Finding 1174613 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-02-19

AI Summary

  • Core Issue: The Corporation failed to submit the annual financial report to HUD and the SF-SAC form on time.
  • Impacted Requirements: This non-compliance violates the HAP Contract and Uniform Guidance timelines.
  • Recommended Follow-Up: Ensure timely submission of financial reports and forms in the future to avoid similar issues.

Finding Text

Finding reference number: 2024-001 Assistance Listing (Federal award identification number and year): Section 8 Project-Based Cluster, Assistance Listing No. 14.195, CA16L000004, and 1996 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not application to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2024-001: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the year ended December 31, 2024. Additionally, Form SF-SAC Single Audit Date Collection Form for the year ended December 31, 2024 was not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the HAP Contract, within 90 days, or such a period established in writing by HUD, following the fiscal year end, the Corporation is required to furnish to HUD a complete annual financial report based upon the examination of the books and records of the Corporation prepared in accordance with GAAP and with the requirements of HUD, and audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. Additionally, pursuant to Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation is not in compliance with the HAP Contract and Uniform Guidance. Cause: There was a change in auditors in August 2025. Recommendation: The Corporation should ensure the annual financial report to HUD and Form SFSAC Single Audit Data Collection form are filed within the regulatory timeline. Management's response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD and the federal clearinghouse. No further action is required.

Corrective Action Plan

Name of auditee: Beverly Normandie Housing Corporation HUD auditee identification number: CA16L000004 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2024 CAP prepared by Name: Noel Sweizter Position: President, HDSI Management, Inc. Telephone number: 323-231-1107 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2024-001: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the year ended December 31, 2024. Additionally, Form SF-SAC Single Audit Date Collection Form for the year ended December 31, 2024 was not submitted to the federal audit clearinghouse in the required timeframe. Comments on the Finding and Each Recommendation: The Corporation should ensure the annual financial report to HUD and Form SF-SAC Single Audit Data Collection form are filed within the regulatory timeline. Action(s) taken or planned on the finding: The audited financial statements have been submitted to HUD and the federal clearinghouse. No further action is required.

Categories

HUD Housing Programs Subrecipient Monitoring

Other Findings in this Audit

  • 1174614 2024-002
    Material Weakness Repeat
  • 1174615 2024-003
    Material Weakness Repeat
  • 1174616 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $952,350