AGENDA TITLE:
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Accept Tienda Drive Senior Apartments, L.P. Report on the Audit of Financial Statements and Supplementary Information December 31, 2023 (FIN)
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MEETING DATE:
June 5, 2024
PREPARED BY:
Melissa Munoz, Accounting Manager and Katie Lucchesi, City Attorney
recommendation
RECOMMENDED ACTION:
Accept Tienda Drive Senior Apartments, L.P. (“Tienda”) Report on the Audit of Financial Statements and Supplementary Information December 31, 2023.
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BACKGROUND INFORMATION:
Tienda was formed on December 23, 2015, to acquire, construct, develop, own and operate an 80-unit affordable housing development located in the City of Lodi (“City”). Tienda is currently operating Cranes Landing Apartments, which was placed in service in May 2017 (“Project”).
Tienda acquired loans from multiple entities to complete the Project, including $494,536 from the City of Lodi (“City Loan”). Payments are to be made on the City Loan from Tienda’s excess/distributable cash with the entire principal due in full in May 2072.
As required by many of Tienda’s government funding sources for the Project, and in accordance with Government Auditing Standards, Tienda had external auditor Cohn Reznick review its financial statements and prepare the Independent Auditor’s Report, a full copy of which is included herein as Attachment A (“Report”). The Report considered Tienda's financial reporting procedures and its compliance with laws, regulations, contracts and grant agreements, and other matters, and then disclosed whether there were any necessary negative findings that would have to be reported.
Here, the Report states that the Auditor’s found that Tienda’s financial statements presented their information fairly and appear to be free from material misstatements. Further, on page 40 of the Report, the Auditor’s stated that the tests they performed found no noncompliance or other matters by Tienda that would require reporting under Government Auditing Standards. Therefore, the City is not required to take any further action related to the City Loan and staff recommends that the Council just review the Report, receive it as Tienda’s compliance with the Government Auditing Standards requirement, and direct staff to file the Report with the City Loan records.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Not applicable.
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Melissa Munoz
Accounting Manager
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Katie O. Lucchesi
City Attorney
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Andrew C. Keys
Interim City Manager