Audit 18784

Finding Reference Number: 2022-01 Federal Programs: Section 221(d)(4) 14.135 and Sec 8 14.195 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: Surplus cash is to be deposited into a separate residual receipts account Statement of Condition: Surplus cash of $96,561 reported at 12/31/21 was not deposited into a residual receipts account during 2022 Cause: Management was seeking a waiver from HUD and cash was not available to make required deposit. This is a repeat finding see 2021-01. Effect or Potential Effect: Noncompliance and under-funding of residual receipts account. Auditor Noncompliance Code: B ? Failure to make required residual receipts deposits Questioned Costs: $96,561 Reporting Views of Responsible Officials: Management requested HUD to waive the requirement due to significant current year cash requirements. Recommendation: Management should deposit the amount or obtain HUD's approval for a waiver. Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: HUD's approval was sought for the waiver but an answer was not obtained. Response Indicator: Agree Completion Date: 7/31/2023 Response: HUD's approval was sought for the waiver but an answer was not obtained. Management will seek a waiver for deposits and follow the directives it receives from the HUD Account Executive.

Finding Reference Number: 2022-01 Federal Programs: Section 221(d)(4) 14.135 and Sec 8 14.195 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: Surplus cash is to be deposited into a separate residual receipts account Statement of Condition: Surplus cash of $96,561 reported at 12/31/21 was not deposited into a residual receipts account during 2022 Cause: Management was seeking a waiver from HUD and cash was not available to make required deposit. This is a repeat finding see 2021-01. Effect or Potential Effect: Noncompliance and under-funding of residual receipts account. Auditor Noncompliance Code: B ? Failure to make required residual receipts deposits Questioned Costs: $96,561 Reporting Views of Responsible Officials: Management requested HUD to waive the requirement due to significant current year cash requirements. Recommendation: Management should deposit the amount or obtain HUD's approval for a waiver. Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: HUD's approval was sought for the waiver but an answer was not obtained. Response Indicator: Agree Completion Date: 7/31/2023 Response: HUD's approval was sought for the waiver but an answer was not obtained. Management will seek a waiver for deposits and follow the directives it receives from the HUD Account Executive.

Finding Reference Number: 2022-01 Federal Programs: Section 221(d)(4) 14.135 and Sec 8 14.195 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: Surplus cash is to be deposited into a separate residual receipts account Statement of Condition: Surplus cash of $96,561 reported at 12/31/21 was not deposited into a residual receipts account during 2022 Cause: Management was seeking a waiver from HUD and cash was not available to make required deposit. This is a repeat finding see 2021-01. Effect or Potential Effect: Noncompliance and under-funding of residual receipts account. Auditor Noncompliance Code: B ? Failure to make required residual receipts deposits Questioned Costs: $96,561 Reporting Views of Responsible Officials: Management requested HUD to waive the requirement due to significant current year cash requirements. Recommendation: Management should deposit the amount or obtain HUD's approval for a waiver. Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: HUD's approval was sought for the waiver but an answer was not obtained. Response Indicator: Agree Completion Date: 7/31/2023 Response: HUD's approval was sought for the waiver but an answer was not obtained. Management will seek a waiver for deposits and follow the directives it receives from the HUD Account Executive.

Finding Reference Number: 2022-01 Federal Programs: Section 221(d)(4) 14.135 and Sec 8 14.195 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: Surplus cash is to be deposited into a separate residual receipts account Statement of Condition: Surplus cash of $96,561 reported at 12/31/21 was not deposited into a residual receipts account during 2022 Cause: Management was seeking a waiver from HUD and cash was not available to make required deposit. This is a repeat finding see 2021-01. Effect or Potential Effect: Noncompliance and under-funding of residual receipts account. Auditor Noncompliance Code: B ? Failure to make required residual receipts deposits Questioned Costs: $96,561 Reporting Views of Responsible Officials: Management requested HUD to waive the requirement due to significant current year cash requirements. Recommendation: Management should deposit the amount or obtain HUD's approval for a waiver. Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: HUD's approval was sought for the waiver but an answer was not obtained. Response Indicator: Agree Completion Date: 7/31/2023 Response: HUD's approval was sought for the waiver but an answer was not obtained. Management will seek a waiver for deposits and follow the directives it receives from the HUD Account Executive.