Finding 1206392 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-04-10

AI Summary

  • Core Issue: The Corporation failed to submit a complete annual financial report to HUD within the required 90-day timeframe after the fiscal year ended June 30, 2024.
  • Impacted Requirements: This non-compliance violates the Regulatory Agreement, which mandates timely reporting based on GAAP and auditing standards.
  • Recommended Follow-Up: Ensure future annual financial reports are submitted on time to avoid similar issues; management has acknowledged this and submitted the required documents.

Finding Text

Assistance Listing (Federal award identification number and year): LIHPRHA Capital Grant, Assistance Listing No. 14.122, 122-44641 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 information is not applicable 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 2024-003: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the year ended June 30, 2024. Criteria: Pursuant to the Regulatory Agreement, 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. Effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: There was a change in auditors in August 2024 resulting in an owner certified submission to extend the deadline to March 31, 2025. Due to the transition, there were delays in obtaining all of the information required to complete the audit. Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Management's response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD. No further action is required.

Corrective Action Plan

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2024 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2024-003: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the year ended June 30, 2024. Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Action(s) taken or planned on the finding: The audited financial statements have been submitted to HUD. No further action is required.

Categories

Subrecipient Monitoring HUD Housing Programs

Other Findings in this Audit

  • 1206390 2024-001
    Material Weakness Repeat
  • 1206391 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.122 MORTGAGE INSURANCE HOMES IN URBAN RENEWAL AREAS $2.90M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $314,733