[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6316934,"mediaKeyId","2375194-5bca03f5f409e0220efc88981cf52b57","parentId",2375194,"title","CalHFA auditors report clean opinions on FY 2023–24; committee urged to review loan-loss allowance and SB 2 funding decline","audioSeconds",2462,"startMs",145000,"endMs",2607000,"viewUrl","/Search/View?dp=1&key=2375194-5bca03f5f409e0220efc88981cf52b57&start=145&end=2607","thumbnailUrl","https://assets.pipeline.soar.com/2375194-5bca03f5f409e0220efc88981cf52b57/thumbnail_145000.jpg","articleUrl","/articles/6316934/California/CalHFA-auditors-report-clean-opinions-on-FY-202324-committee-urged-to-review-loan-loss-allowance-and-SB-2-funding-decline","mediaUrl","https://secure.pipeline.soar.com/6316934-4bec643af6e999eb1e9f92a9d1bb0513/orig.mp4?Expires=1771137091&Signature=JAbRs5oUXmIdtHIPnu4A7X4igcUMsIOLWalhNiIWOsHdS2xHXdL3e6V0PtZ1PORrt5m8B1BwL0GOjpwe9DHGZCENO8smSVWze2reqKB64~a12rJmW-8RBKMrGKx2KEA~Q1sOkljGece~9dQX6P53ZOFshD3U4TMsp6qhkiDi0RopuQiv9uXpMC7jKXuLjIfRJOHI-cU4R2-DikALvkkdNtH0D1U~8AiTRHczF5YZwORLHumVyIduz5lVopQzniU6~wDNFfmNxcot~pTjJ6wtQ8BBLdSA1Nu~Zqsc69hqvuWUr-986BoMr~2fW7q-xA2plPJJRqq6dCz7CzuradWu-Q__&Key-Pair-Id=KUT5TJCACFTXG","author","CalHFA Board Meetings 2025","date","2025-02-22T12:42:41.63Z","article","At a meeting of the California Housing Finance Agency Audit and Risk Management Committee, external auditors reported unmodified (\"clean\") opinions on CalHFA's fiscal-year 2023'24 financial statements and on federal awards and said they identified no findings or material weaknesses.

The audit was presented by Mandy Merchant and Elizabeth (Liz) Richardson of CliftonLarsonAllen and introduced by Oksana Gluchenko, CalHFA comptroller. Gluchenko told the committee the auditors \"formally sign[ed] off on this year audit on December 9,\" and she noted the agency received the certificate of excellence in financial reporting from the Government Finance Officers Association for the seventh consecutive year.

The clean opinions and lack of reportable deficiencies give CalHFA a favorable external assessment of its financial reporting and internal controls. Committee members focused discussion on two operational risks highlighted in the audit material: the allowance for program loan losses and the decline in SB 2 revenues that help fund the agency's Mixed Income Program.

Merchant described the audit scope and results, saying the firm issued \"unmodified opinions\" and that \"we had no findings\" on internal control over financial reporting or compliance with federal awards. She explained the firm used a risk-based approach that included testing loans and confirmations for single-family and multifamily portfolios.

Audit and financial highlights reported to the committee (figures as presented by the auditors):

- Cash and investments: an $82.9 million increase, driven primarily by a new Affordable Housing Revenue Bond issuance and higher money market balances.

- Noncurrent investments: a $101.5 million increase, primarily from purchases of mortgage-backed securities.

- Program loans receivable: a net increase of $56.8 million, mainly due to multifamily lending tied to the new bond indenture; auditors noted a net increase in about 10 multifamily loans that have larger dollar values.

- Loans payable and bonds payable: increases of $53.2 million and $79.9 million, respectively, reflecting new borrowings and the AHRB issuance.

- Revenue and expenses: a $36.5 million increase in net interest income driven by more favorable market rates; a $17.8 million decrease in loan fees associated with about a 4% drop in single-family loan volume (roughly 1,500 fewer loans); and a $27.9 million increase in salaries and general expenses primarily tied to pension and OPEB estimate changes.

On the allowance for loan losses, the committee heard staff and auditors describe the agency's methodology. Oksana Gluschenko said the allowance process is \"based on the formula of historical performance\" and that CalHFA is \"closely monitoring portfolios\"; she added that for portions of the portfolio CalHFA \"maintain[s] the regular percentage, maybe 10%.\" Auditor Mandy Merchant advised the committee to review Note 5 of the financial statements, observing: \"You have a $86,000,000 allowance right now. Is that sufficient for our portfolio?\"

Merchant and Richardson described the audit's testing approach: sampling cash disbursements and payroll, sending a few hundred monetary-unit confirmations to borrowers and multifamily projects, and using historical write-off experience plus single-identification of past-due loans to evaluate allowance adequacy. Both auditors said they found no large write-offs or real-estate-owned (REO) events in the audited year.

The committee also discussed accounting standard changes that may affect future audits: new AICPA-related auditing standards increasing IT-focused procedures and the upcoming GASB guidance on compensated absences (GASB 101). Merchant summarized GASB 101 as requiring agencies to review policies and \"estimate probability\" of paid leaves (vacation, sick, parental, military) and to recognize related liabilities more consistently. Committee members asked staff to quantify CalHFA's exposure under the new guidance and to report back with historical comparisons.

Committee direction and next steps: Chair Sotelo and other members requested that staff bring comparative, multi-year data to the committee to link program activity and risk (for example, historical allowance usage and the recent decline in SB 2 allocations). Gluchenko and staff said they would include that analysis in future meetings; the committee scheduled a May 20 meeting to review the agency's risk framework and suggested using the audit as a tool for that assessment.

No public comments were raised during the audit presentation.

Ending: Committee members praised the audit team's work and stressed follow-up analysis. The committee moved on to an update on the audit services contract process following the discussion.","mediaType","Video","parentTitle","CalHFA Audit and Risk Committee Meeting - 02/20/2025","oneSentenceSummary","At a meeting of the California Housing Finance Agency Audit and Risk Management Committee, external auditors reported unmodified (\"clean\") opinions on CalHFA's fiscal-year 2023'24 financial statements and on federal awards and said they identified no findings or material weaknesses.","taxTitle","Housing Finance Agency, Agencies under Office of the Governor, Executive, California","taxId",70084,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6316929,"CalHFA outlines plan to solicit new external auditor; committee to help interview finalists",741,2531000,3272000,"/Search/View?dp=1&key=2375194-5bca03f5f409e0220efc88981cf52b57&start=2531&end=3272","https://assets.pipeline.soar.com/2375194-5bca03f5f409e0220efc88981cf52b57/thumbnail_2531000.jpg","/articles/6316929/California/CalHFA-outlines-plan-to-solicit-new-external-auditor-committee-to-help-interview-finalists","https://secure.pipeline.soar.com/6316929-6e6de2d8bf263607bacb3b60e8354994/orig.mp4?Expires=1771137091&Signature=YU7U35ApqGJk76vfYgb1PB9v9M25sMj55FF91~S5q49F2SNYaJ8QQMfppyMiM9h~0wKYqaUzTYL16VopONbW-YFBnWTNnDB0Qg9XfLe2iLltneWsp9r5D7WJyp1ILNJUsB0SZsU7FH6CVTVFVtDa-X8FpJwRb5KgKR2WDGVOwUvVXY2~dgrc8P7Y7PAq4IjrDeKSC0GKnqUskJaW9fYsA3roqd4OfUaHChl~yobt6LkVGPYZ-AabCSIzuppCzg9PwwCD79kbaOMQlIRT8XqNsfH0gXIZ-7qo-DIP7uULZqdAXd8D2kksPBfg4ncfik9dJqUHvGwMmCJ4WCfSLgENKg__&Key-Pair-Id=KUT5TJCACFTXG","CalHFA staff presented a multi-phase procurement plan to the Audit and Risk Management Committee for selecting its next external auditing firm, saying the current contract with CliftonLarsonAllen is expected to expire on December 31, 2025.

The plan, presented by agency staff, sets out four broad phases: define auditor requirements (experience with housing finance and public-sector audits, technological capabilities, and staff qualifications); establish selection criteria (expertise, reputation, cost-effectiveness, and modern audit tools); run an application and screening process; and conduct finalist interviews with committee participation before legal negotiates a final contract.

Staff said they will conduct broad outreach, including posting a request for proposals and encouraging bids from small firms. The shortlist will target firms that can audit CalHFA's complex financial statements (including federal awards and multiple compliance audits) and that have adequate data-security and audit-technology capabilities.

On committee involvement, staff said they expect to bring a short list to committee members for interviews and assessment of candidate fit. The tentative schedule shared in the meeting: staff will refine selection criteria this spring, present shortlisted firms for committee interviews in August/September, and complete contract negotiations thereafter. A staff speaker said the plan is to have a minimum of three finalists for the final interview round and to use committee feedback before contracting.

Committee members asked to be involved earlier in the process. One committee member requested that the selection criteria be brought to the committee for review and endorsement as the point at which the committee provides input. Staff agreed and said they would engage committee members during the short-listing and interview phase.

Staff highlighted other planning items tied to the procurement timetable: the firm will need to meet data-handling and confidentiality requirements; the contract will cover audits of the housing finance fund, federal programs (including Section 8 variants), and two compliance audits of down-payment assistance programs; and the process will include reference checks and a review of disciplinary or regulatory history.

The committee scheduled future agenda items that support the procurement and oversight work: a May 20 meeting to review the agency's risk framework and a planned August meeting for interviews of top candidates. A later fall meeting will include an information-technology security update from the agency's chief information officer.

No public comments were raised during the procurement discussion.

Ending: Committee members supported staff's approach and asked that selection criteria be circulated for committee feedback ahead of the finalist interviews.","CalHFA staff presented a multi-step procurement plan to replace CliftonLarsonAllen after its contract ends 12/31/2025, with selection criteria, outreach to smaller firms, a short list of finalists and committee interviews planned for late summer.","actionData","errors"]

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CalHFA auditors report clean opinions on FY 2023–24; committee urged to review loan-loss allowance and SB 2 funding decline

CalHFA outlines plan to solicit new external auditor; committee to help interview finalists