EIN: 954230345
UEI: ZVMSJPN2HQJ8
Audited by: Holthouse Carlin & Van Trigt LLP
Oversight agency: 93 [Department of Health and Human Services]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 28, 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 February 28, 2027 (177 days from today).
What is a management decision? →Significant Deficiency – Internal Controls over Period-End Financial Closing Process of Limited Partnerships Condition During our audits and compilations of the consolidated limited partnerships (the Limited Partnerships), it was noted that the Limited Partnerships did not perform a timely review and reconciliation of the activity reported by the property management company which resulted in misstated accounts, post-closing journal entries, and delays in obtaining supporting documents. These deficiencies contributed to delays in the preparation and finalization of the consolidated financial statements and impacted on the timely submission of the Uniform Guidance reporting package. Criteria: Management and those charged with governance are responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Cause: The deficiencies noted above were attributable to the third-party property management company’s failure to consistently perform and document internal controls over the closing process in a timely manner, as well as delays in providing the required monthly financial reporting package. In addition, the Organization did not have sufficient oversight mechanisms in place to monitor and enforce compliance with closing procedures at the property management company level for the Limited Partnerships. Effect: Certain internal controls were not properly designed or consistently and effectively implemented resulting in numerous adjustments to correct the misstatements. Recommendation: Although the Limited Partnerships have a separate financial reporting process, such controls were not being followed by the property management company. In addition, we noted that the Organization’s finance department was not reviewing the general ledger and financial reports provided by the property management company in a timely manner. We recommend management and finance department perform a timely review of the property management company’s activity for the Limited Partnerships, including a review of key reconciliations, to identify issues early and communicate corrections to the property management company in a timely manner. Views of Responsible Officials and Planned Corrective Actions: ECHC, in its capacity as General Partner, acknowledges the matters identified and notes that while it has established oversight controls over the financial closing and reporting process, the effectiveness of these controls was limited by the prior property management company’s inability to provide complete, accurate, and timely financial information. In response, ECHC has terminated agreements with the prior property management company and has engaged a new property management company, with clear expectations regarding the timely delivery of complete financial reporting packages and supporting documentation. ECHC will continue to execute its established oversight controls and will monitor the new management company’s performance to ensure the effectiveness of the financial closing and reporting process.
Show full finding ▾Hide full finding ▴Significant Deficiency – Internal Controls over Period-End Financial Closing Process of Limited Partnerships Condition During our audits and compilations of the consolidated limited partnerships (the Limited Partnerships), it was noted that the Limited Partnerships did not perform a timely review and reconciliation of the activity reported by the property management company which resulted in misstated accounts, post-closing journal entries, and delays in obtaining supporting documents. These deficiencies contributed to delays in the preparation and finalization of the consolidated financial statements and impacted on the timely submission of the Uniform Guidance reporting package. Criteria: Management and those charged with governance are responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Cause: The deficiencies noted above were attributable to the third-party property management company’s failure to consistently perform and document internal controls over the closing process in a timely manner, as well as delays in providing the required monthly financial reporting package. In addition, the Organization did not have sufficient oversight mechanisms in place to monitor and enforce compliance with closing procedures at the property management company level for the Limited Partnerships. Effect: Certain internal controls were not properly designed or consistently and effectively implemented resulting in numerous adjustments to correct the misstatements. Recommendation: Although the Limited Partnerships have a separate financial reporting process, such controls were not being followed by the property management company. In addition, we noted that the Organization’s finance department was not reviewing the general ledger and financial reports provided by the property management company in a timely manner. We recommend management and finance department perform a timely review of the property management company’s activity for the Limited Partnerships, including a review of key reconciliations, to identify issues early and communicate corrections to the property management company in a timely manner. Views of Responsible Officials and Planned Corrective Actions: ECHC, in its capacity as General Partner, acknowledges the matters identified and notes that while it has established oversight controls over the financial closing and reporting process, the effectiveness of these controls was limited by the prior property management company’s inability to provide complete, accurate, and timely financial information. In response, ECHC has terminated agreements with the prior property management company and has engaged a new property management company, with clear expectations regarding the timely delivery of complete financial reporting packages and supporting documentation. ECHC will continue to execute its established oversight controls and will monitor the new management company’s performance to ensure the effectiveness of the financial closing and reporting process.
Finding #2024-002 Deficiency - Internal Controls over Period-End Financial Closing Process of Limited Partnerships Corrective Action Planned ECHC, in its capacity as General Partner, has taken corrective action by terminating the prior property management company and engaging a new property management company. ECHC will continue to execute and strengthen its oversight controls over the financial closing and reporting process for the Limited Partnerships to ensure complete, accurate, and timely financial information is provided and reviewed. The corrective action plan will include the following steps: 1. Transition to New Property Management Company o Complete on boarding of the new property management company, including communication of ECHC's expectations for financial reporting, internal controls, supporting documentation, and closing timelines. o Confirm that the new property management company understands the required format, content, and timing of monthly submissions. 2. Monthly Reporting Package Deadlines o Require the property management company to provide complete monthly financial reporting packages by an established deadline each month. o Reporting packages will include, as applicable, general ledger detail, trial balance, balance sheet, income statement, bank reconciliations, accounts receivable aging, accounts payable aging, tenant receivable support, cash activity, debt and escrow activity, and supporting documentation for significant or unusual transactions. o ECHC will monitor timely receipt of monthly reporting packages and follow up promptly on late or incomplete submissions. 3. Finance Department Review of General Ledger and Financial Reports o ECHC finance personnel will perform a timely monthly review of the general ledger and financial reports provided by the property management company. o The review will include evaluation of account balances, budget-to-actual fluctuations, unusual transactions, completeness of activity, and consistency with prior periods and known operating activity. o Identified issues will be communicated to the property management company for correction before the monthly close is finalized, where practicable. 4. Review of Key Reconciliations o ECHC will review key reconciliations prepared by the property management company, including bank reconciliations, tenant receivables, accounts payable, security deposits, escrow accounts, intercompany balances, debt balances, and other significant balance sheet accounts. o Reconciliations will be reviewed for completeness, accuracy, timeliness, and support for reconciling items. o Unresolved reconciling items will be tracked and followed up until resolution. 8. Ongoing Monitoring and Oversight o ECHC will monitor the new property management company's performance against established reporting deadlines and quality expectations. o Finance leadership will periodically evaluate whether oversight controls are operating effectively and whether additional controls are needed. o ECHC will maintain documentation of monthly reviews, reconciliations reviewed, issues identified, follow-up performed, and final resolution of exceptions. Management believes these corrective actions will strengthen the period-end financial closing process for the Limited Partnerships, improve the timeliness and accuracy of financial reporting, and reduce the need for post-closing audit adjustments.
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