Corona Housing Authority
Corona, California
Housing Successor Compliance and
Independent Auditors’ Report
For the Year Ended June 30, 2024
Corona Housing Authority
Table of Contents
Page
Independent Auditors’ Report:
Report on Compliance for the Housing Successor; Report on Internal Control Over Compliance; and Report on the Schedule of Excess Surplus ......................................................... 1 Schedule of Excess Surplus ........................................................................................................................................ 4 200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
REPORT ON COMPLIANCE FOR THE HOUSING SUCCESSOR; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXCESS SURPLUS Independent Auditors’ Report
To the Honorable Mayor, City Council and Citizens
of the City of Corona
Corona, California
Report on Compliance for the Housing Successor
Opinion on Compliance for the Housing Successor
We have audited Corona Housing Authority, a component unit of the City of Corona, California (the “City”), as the Housing Successor to the former Redevelopment Agency of the City of Corona’s (the “Housing Successor”) compliance with the type of compliance requirements described in the California Health and Safety Code sections applicable to the Housing Successor for the year ended June 30, 2024.
In our opinion, the Housing Successor complied, in all material respects, with the compliance requirements referred to above that are applicable to Housing Successor for the year ended June 30, 2024.
Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (“GAAS”); the standards applicable to financial audits contained in Government Auditing Standards (“Government Auditing Standards”) issued by the Comptroller General of the United States; and California Health and Safety Code sections applicable to the Housing Successor (the “Health and Safety Codes”). Our responsibilities under those standards and the Health and Safety Codes are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the Housing Successor and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the Housing Successor's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Housing Successor's government programs.
To the Honorable Mayor, City Council and Citizens
of the City of Corona
Corona, California
2 Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Housing Successor's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Health and Safety Codes will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Housing Successor's compliance with the requirements of the government program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Health and Safety Codes, we:
exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Housing Successor's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. obtain an understanding of the Housing Successor's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Health and Safety Codes, but not for the purpose of expressing an opinion on the effectiveness of the Housing Successor's internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
To the Honorable Mayor, City Council and Citizens
of the City of Corona
Corona, California
3 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Health and Safety Codes.
Accordingly, this report is not suitable for any other purpose.
Report on the Schedule of Excess Surplus
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated November 25, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Excess Surplus is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Schedule of Excess Surplus is fairly stated in all material respects in relation to the basic financial statements as a whole.
Santa Ana, California
November 25, 2024
Corona Housing Authority
Schedule of Excess Surplus
For the Year Ended June 30, 2024
4 Opening Fund Balance 38,393,574 $
Less: Land held for resale (1,998,648)
Long term receivables (15,238,156)
Available Housing Successor Funds 21,156,770
Limitation (greater of $1,000,000 or four years deposits) Aggregate amount deposited for last four years:
2022-2023 900,480
2021-2022 7,801,457
2020-2021 632,172
2019-2020 919,410
Total $ 10,253,519
Greater amount 10,253,519
Computed Excess Surplus $ 10,903,251
Low and Moderate
Housing Funds
All project Area
July 1, 2023