Finding 1177764 (2025-003)

Finding Reference Number: 2025-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant; Home Investment Partnerships Program Loan Assistance Listing Number: 14.218 and 14.239 Pass-Through Agency: Alameda County Housing and Community Development and City of Alameda Award Period: 2021 - 2072 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: The Organization does not comply with the terms of its loan agreements. Condition and Context: During the audit engagement, it was identified that the Organization does not perform a reconciliation of excess cash for cash reserves and does not obtain supporting documentation for qualifying low-income housing individuals. Additionally, the Organization does not currently perform the required identification of units due for inspection nor conduct inspections at the prescribed frequency. Effect: Failure to comply with the loan agreement. Cause: Failure in the implementation of controls throughout the year. Repeat Finding: Yes. Prior year finding reference number: 2024-005. Recommendation: We recommend that management implement a reconciliation of excess cash and obtain supporting documentation to validate low-income housing individuals to comply with the requirements set forth in the loan agreements. Views of Responsible Official: Management agrees with the comment and is enhancing its compliance approach as it relates to loan obligations and tenant documentation.