FAC Explorer

Finding 524042 (2024-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-02-20
Audit: 343226
Organization: Belmeno - Hope Harbor Housing Dba Belmeno Manor (CA)
Auditor: Douglas & Bhagat CPA Services INC

AI Summary

  • Core Issue: Timely submission of audited financial statements to HUD is at risk due to management changes.
  • Impacted Requirements: Submissions must be made within 90 days post fiscal year-end (by September 30, 2024).
  • Recommended Follow-Up: Ensure all necessary financial information is secured before changing management companies.

Finding Text

Criteria or specific requirement: Assignment of responsibility to the Sponsor (HOPE, Inc.) and Board of Directors that the audited financial statements are timely submitted to HUD Real Estate Assessment Center (REAC) Condition: REAC submissions of audited financial statements are due within 90 days of the Organization’s fiscal year end of June 30, 2024 Effect: Could result in penalties charged by HUD due to the fact that the submissions were late Cause The Sponsor fired the property management company during this fiscal year and it was difficult for the Organization and independent auditor to acquire financial information from this property management company Recommendation: Before making any changes to management companies the Organization needs to verify that they have all necessary financial information to the independent auditor Management's response: The Sponsor and Board of Directors will consult with the independent auditor in the future before making any changes to management companies so they can plan accordingly

Corrective Action Plan

U.S. Department of Housing and Urban Development Belmeno Hope Harbor Housing dba Belmeno Manor respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit Firm: Douglas & Bhagat CPA Services, Inc., 100 East Thousand Oaks Blvd. Suite 202, Thousand Oaks, CA 91360 Audit Period: Year ended June 30, 2024. FINDINGS – FINANCIAL STATEMENT AUDIT Finding No. 2024-001 Recommendation: Assignment of responsibility to the Sponsor (HOPE, Inc.) and Board of Directors that the audited financial statements are timely submitted to HUD Real Estate Assessment Center (REAC). No changes to management companies will be made without discussion with independent auditor and every effort will be made to obtain documentation from management company as soon as the contract is terminated Action Taken: The Sponsor and Board of Directors will consult with the independent auditor in the future before making any changes to management companies so they can plan accordingly FINDINGS – FEDERAL AWARD PROGRAM AUDITS None

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1100484 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $960,050