EIN: 946023144
UEI: NKQ8J5E7NCQ1
Audited by: Smith Marion & Co
Oversight agency: 14 [Department of Housing and Urban Development]
View federal awards & risk assessment →
Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 15, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 15, 2026 (59 days ago).
What is a management decision? →FAC accepted this audit on March 18, 2025 — management decision was due September 18, 2025.
Program Name Housing Choice Voucher Internal Control Significant Deficiency N Special Test and Provisions AL Number 14.871 2024-001 Housing Quality Standards Inspection/HQS Enforcement Questioned Costs None Criteria The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition During our audit, we identified three (3) failed HQS that did not receive a pass within the appropriate timeframe and no rent abetment process was started or enforced during that time period. Context The HQS population was 316 failed inspection. We selected a sample of 25 inspection and identified of those 25 reviewed 3 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. Cause The Authority relies on an outside vendor to perform timely HQS inspections and follow their admin plan. The outsourced vendor performing the HQS inspections were not aware of the Authority's policies regarding a life threatening fail, therefore causing the Authority to be out of compliance. Effect The Authority is non‐compliant with their approved Administrative Plan, this could potentially result in operating and financial penalties. Recommendations We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management Views Management agrees with the finding, see Management's Corrective Action Plan.
Show full finding ▾Hide full finding ▴Program Name Housing Choice Voucher Internal Control Significant Deficiency N Special Test and Provisions AL Number 14.871 2024-001 Housing Quality Standards Inspection/HQS Enforcement Questioned Costs None Criteria The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition During our audit, we identified three (3) failed HQS that did not receive a pass within the appropriate timeframe and no rent abetment process was started or enforced during that time period. Context The HQS population was 316 failed inspection. We selected a sample of 25 inspection and identified of those 25 reviewed 3 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. Cause The Authority relies on an outside vendor to perform timely HQS inspections and follow their admin plan. The outsourced vendor performing the HQS inspections were not aware of the Authority's policies regarding a life threatening fail, therefore causing the Authority to be out of compliance. Effect The Authority is non‐compliant with their approved Administrative Plan, this could potentially result in operating and financial penalties. Recommendations We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management Views Management agrees with the finding, see Management's Corrective Action Plan.
MANAGEMENT RESPONSE AND CORRECTIVE ACTION Management agrees with this finding. Corrective Actions: LHA has taken immediate action to correct this issue. LHA has reviewed the requirements with the third-party vendor and has implemented improved reporting requirements on the inspections reports for their staff. LHA is conducting a retro-active QC effort to identify potential failures by the vendor and their reporting or adherence with LHA policy. LHA is implementing and drafting a QA process to ensure there are additional checks to inspection reports as they are provided to LHA. In addition, the LHA has posted a draft for public comment of the Administrative Plan that we anticipate will be implemented on 7/1/2025. The plan removes reference to adherence to state or local code as the LHA and its vendors are not the appropriate enforcement agency to address those requirements. We anticipate that there will be diminished issues effective immediately and full compliance with the current Administrative by 3/1/2025 and a new Administrative Plan implemented on 7/1/2025 removing the language related to local code enforcement. The responsible staff are the Administrative Clerk, Management Analyst and Executive Director.
FAC accepted this audit on January 26, 2023 — management decision was due July 26, 2023.
Finding 2022-001 ? Housing Voucher Cluster Noncompliance and Significant Deficiency in Internal Controls over SEMAP submission. Criteria: The Uniform Financial Reporting Standards (UFRS), at 24 CFR ? 985.101, require Authorities to submit SEMAP certification form within 60 calendar days after the end of its fiscal year. Condition and Context: During the audit for the year ended June 30, 2022, it was discovered that the Authority had not submitted the SEMAP certification within 60 days of the end of the fiscal year. Effect or Potential Effect: As a result of this noncompliance, the PHA could receive an overall performance rating of ?troubled? which means the PHA will be subject to the requirements of CFR ? 985.107 ?Required actions for PHA with troubled performance rating.?. This may include: on-site reviews by HUD with a written reports to follow, a corrective action plan to address any issues that HUD identified, monitoring of the corrective action plan, prohibition of use of administrative fees, and upgrading the poor performance rating via HUDs determination that a change in the rating is warranted. Cause: The cause of this error is managements lack of control over monitoring the deadline associated with submission of the SEMAP certification. Recommendation: We recommend that management adds this and any other pertinent deadlines to a calendar for better tracking throughout the year. Views of Responsible Official(s): Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report
Show full finding ▾Hide full finding ▴Finding 2022-001 ? Housing Voucher Cluster Noncompliance and Significant Deficiency in Internal Controls over SEMAP submission. Criteria: The Uniform Financial Reporting Standards (UFRS), at 24 CFR ? 985.101, require Authorities to submit SEMAP certification form within 60 calendar days after the end of its fiscal year. Condition and Context: During the audit for the year ended June 30, 2022, it was discovered that the Authority had not submitted the SEMAP certification within 60 days of the end of the fiscal year. Effect or Potential Effect: As a result of this noncompliance, the PHA could receive an overall performance rating of ?troubled? which means the PHA will be subject to the requirements of CFR ? 985.107 ?Required actions for PHA with troubled performance rating.?. This may include: on-site reviews by HUD with a written reports to follow, a corrective action plan to address any issues that HUD identified, monitoring of the corrective action plan, prohibition of use of administrative fees, and upgrading the poor performance rating via HUDs determination that a change in the rating is warranted. Cause: The cause of this error is managements lack of control over monitoring the deadline associated with submission of the SEMAP certification. Recommendation: We recommend that management adds this and any other pertinent deadlines to a calendar for better tracking throughout the year. Views of Responsible Official(s): Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report
a. Finding 2022-001 i. Comments on the Finding and Recommendation: The Authority concurs that the SEMAP certification was not within the required 60 day period after the end of the fiscal year. ii. Action(s) Taken or Planned on the Finding As of August 22, 2022, the Authority has replaced the management of the Authority that was accountable for this issue. Additionally, the Authority will add the SEMAP certification submission deadline to its calendar and properly monitor this and other future pertinent deadlines.
FAC accepted this audit on March 29, 2020 — management decision was due September 29, 2020.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on July 11, 2017 — management decision was due January 11, 2018.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Browse other Single Audit organizations in California →
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Add it to a monitored group and get alerted when a new audit, finding, repeat finding, or management-decision deadline shows up — instead of checking back.
Checking several at once? Portfolio view →
© 2026 Single Audit Intelligence. All data is public domain.
