Audit 17155

S3800-010 Finding Reference Number 2022-001 S3800-011 Title and CFDA Number of Federal Program - Section 223(a)(7) Mortgage 14.155 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with the Regulatory Agreement between the Cooperative and HUD, Surplus Cash is required to be deposited in a residual receipts account in the name of the Cooperative within 90 days subsequent to the end of the fiscal year. S3800-030 Statement of Condition ? The Corporation failed to make the required deposit within 90 days subsequent to the end of the 2021 fiscal year into the residual receipts account. S3800-032 Cause ? A change in regional manager caused the required deposit to be overlooked. S3800-033 Effect or Potential Effect - The Corporation is in violation of its Regulatory Agreement between the Corporation and HUD. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management is requesting a waiver of the required deposit. S3800-050 Context ? The required deposit for the year ended April 30, 2021 was not made within 90 days of year-end. The amount was calculated, but the deposit was not made. S3800-080 Recommendation ? Management needs to ensure the residual receipts deposit is made within 90 days of year- end. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management needs to ensure the residual receipts deposit is made within 90 days of year- end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? August 1, 2023 S3800-150 Response ? Management is requesting a waiver of the required deposit. If denied, management will deposit fund into the residual receipts account.

S3800-010 Finding Reference Number 2022-001 S3800-011 Title and CFDA Number of Federal Program - Section 223(a)(7) Mortgage 14.155 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with the Regulatory Agreement between the Cooperative and HUD, Surplus Cash is required to be deposited in a residual receipts account in the name of the Cooperative within 90 days subsequent to the end of the fiscal year. S3800-030 Statement of Condition ? The Corporation failed to make the required deposit within 90 days subsequent to the end of the 2021 fiscal year into the residual receipts account. S3800-032 Cause ? A change in regional manager caused the required deposit to be overlooked. S3800-033 Effect or Potential Effect - The Corporation is in violation of its Regulatory Agreement between the Corporation and HUD. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management is requesting a waiver of the required deposit. S3800-050 Context ? The required deposit for the year ended April 30, 2021 was not made within 90 days of year-end. The amount was calculated, but the deposit was not made. S3800-080 Recommendation ? Management needs to ensure the residual receipts deposit is made within 90 days of year- end. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management needs to ensure the residual receipts deposit is made within 90 days of year- end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? August 1, 2023 S3800-150 Response ? Management is requesting a waiver of the required deposit. If denied, management will deposit fund into the residual receipts account.