Recommend acceptance of the quarterly monitoring report to the Napa County Housing Authority (Authority) for the quarter ended December 31, 2025. (Fiscal Impact: None, Discretionary)

This report from the Napa County Auditor-Controller's Office details the quarterly monitoring of the Napa County Housing Authority (Authority) for the quarter ending December 31, 2025. The review, conducted by the Internal Audit section, assessed the compliance of the California Human Development Corporation (CHDC), the operator of three farmworker housing centers, with the Authority's policies and procedures.

Key Findings:

• Overall Compliance: CHDC was found to be in compliance with established policies and procedures, subject to minor observations.
• Collections and Deposits: A small number of discrepancies were noted, including an incorrect lodger number on a receipt at the Calistoga Center and voided receipts at the River Ranch Center lacking supporting documentation for the voids.

Recommendations:

• Voided receipts should include a written explanation.
• A secondary review of lodger information on receipts should be cross-examined with monthly rent reports for accuracy.

The report concludes that while discrepancies were not material, strengthening internal controls and documentation practices, particularly for cash transactions, is recommended.