Audit 11390

Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 123-EH091 and 1989) Auditor non-compliance code: G - Unauthorized loans from project funds Finding resolution status: Resolved Universe population size: 341 disbursements Sample size information: 25 disbursements Statistically valid sample: Yes Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $920 Statement of Condition 2023-001 (Assistance Listing 14.157): During the year ended September 30, 2023, the Corporation paid an expense totaling $920 on behalf of an affiliated entity without HUD approval. Criteria: Section 11(c) of the Regulatory Agreement, states that owners shall not without the prior written approval of the Secretary, pay out any funds except from surplus cash, except for reasonable operating expenses and necessary repairs. Effect: The Corporation is not in compliance with the Regulatory Agreement. The Property's operating cash account has been reduced by $920. This amount has been considered in the surplus cash calculation for the year ended September 30, 2023. Cause: The Corporation paid expenses on behalf of an affiliated entity from the Property's operating cash account. Recommendation: The affiliated entity should repay $920 to the Corporation. Completion date: November 17, 2023. Management Response: Agree. The affiliated entity repaid the Corporation $920 on November 17, 2023.

Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 123-EH091 and 1989) Auditor non-compliance code: G - Unauthorized loans from project funds Finding resolution status: Resolved Universe population size: 341 disbursements Sample size information: 25 disbursements Statistically valid sample: Yes Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $920 Statement of Condition 2023-001 (Assistance Listing 14.157): During the year ended September 30, 2023, the Corporation paid an expense totaling $920 on behalf of an affiliated entity without HUD approval. Criteria: Section 11(c) of the Regulatory Agreement, states that owners shall not without the prior written approval of the Secretary, pay out any funds except from surplus cash, except for reasonable operating expenses and necessary repairs. Effect: The Corporation is not in compliance with the Regulatory Agreement. The Property's operating cash account has been reduced by $920. This amount has been considered in the surplus cash calculation for the year ended September 30, 2023. Cause: The Corporation paid expenses on behalf of an affiliated entity from the Property's operating cash account. Recommendation: The affiliated entity should repay $920 to the Corporation. Completion date: November 17, 2023. Management Response: Agree. The affiliated entity repaid the Corporation $920 on November 17, 2023.