CalHFA auditors issue unmodified opinion on FY25 financials; auditors note one nonmaterial misstatement

The California Housing Finance Agency audit and risk management committee reviewed and accepted the FY ended June 30, 2025 audited financial statements, with auditors reporting unmodified opinions and no material weaknesses.

"Our opinion over the financial statements was unmodified," said Liz Richardson, senior associate at CliftonLarsonAllen, the agency's outgoing audit team. She told the committee the auditors also issued an unmodified opinion on the agency's federal awards and found no federal findings for the Section 811 program.

Richardson disclosed one uncorrected, nonmaterial misstatement related to an amortized hedge termination. "Right now, this is recorded as part of the bonds payable balance instead of deferred inflows," she said, adding that the firm consulted its national team and CalHFA staff and concluded it was acceptable to leave the item recorded as shown while bringing it to the committee's attention.

Agency controller Oksana praised the fiscal team for internal-control improvements, fraud-prevention training and a financial-reporting software overhaul. "Their guidance and expertise have helped ensure that our agency is fully compliant with GAAP and GASB standards," she said.

Auditors highlighted several year-over-year movements: a $273.3 million increase in cash and investments driven largely by loan repayments and movement of down-payment assistance funds to a US Bank account; a $184.8 million increase in program loans receivable; a $334.5 million increase in bonds payable associated with new issuances (about six new bonds during the year); and a $20 million realized gain on sale of securities. Program loans receivable were reported at about $2.4 billion in FY25, up from about $2.2 billion the prior year, with an allowance for losses of roughly $88 million (versus $86 million in FY24).

Chair Williams and committee members praised the report and the agency’s improved timeliness: staff said CalHFA moved from roughly 250 days behind two years ago to delivering financial results before the statutory December 31 deadline.

The committee also voted to approve the January meeting minutes by roll call; the motion was moved from the floor and recorded as approved.

The outgoing auditors, CliftonLarsonAllen, were recognized for nearly a decade of service; staff said Macias Gini & O'Connell will begin fieldwork for the next audit in the coming months.

The committee concluded with no public comments and adjourned.