Audit 19955

H.O.L.I.E. OF GREENFIELD AVENUE, INC. VALENTINO SQUARE APARTMENTS HUD PROJECT NO. 075-EE077-WAH SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2022 FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD: FY2022-001 S3800-010 Finding Reference Number FY2022-001 S3800-011 Title and CFDA Number of Federal Program Section 202 - Supportive Housing for the Elderly - CFDA 14.157 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size Security Deposits S3800-018 Sample Size Information N/A S3800-019 Identification of Repeat Finding and Finding Reference Number Repeat Finding S3800-020 Criteria HUD requires that projects fully fund all security deposits received in a separate security deposit bank account. S3800-030 Statement of Condition The security deposit bank account was not fully funded as of June 30, 2022. S3800-032 Cause Proper internal control was not established to ensure security deposits are fully funded. S3800-033 Effect or Potential Effect The project was not in compliance with HUD security deposit requirements. S3800-035 Auditor Non-Compliance Code M ? Security Deposits S3800-040 Questioned Costs $0 S3800-045 Reporting Views of Responsible Officials Management was informed of the finding and they acknowledged that they were aware of this matter. Management deposited $500 on September 15, 2022 into the security deposit bank account to correct this finding. S3800-050 Context (Situation) The security deposit accounts were analyzed for adequacy at June 30, 2022. S3800-080 Recommendation Management has been advised to increase the security deposit bank account by $55.95 during the year ended June 30, 2023 to correct this finding. It is also recommended that management add an additional level of review at month end to ensure the security deposit account is fully funded as required by HUD. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management was informed of the finding and they acknowledged that they were aware of this matter. Management increased the security deposit bank account by $500 on September 15, 2022 to correct this finding. S3800-130 Response Indicator Agree S3800-140 Completion Date 09/15/2022 S3800-150 Response Management agrees with this finding. S3900-010 Previous Finding Reference Number FY2021-001 S3900-020 Status Indicator Cleared S3900-030 Statement of Condition The security deposit bank account was not fully funded as of June 30, 2021. S3900-040 Previous Response for Finding Management agreed with the finding and deposited $100.00 in the Security Deposit account on September 9, 2021. S3900-050 Narrative Management was informed of the finding and they acknowledged that they were aware of this matter, however, a similar audit finding FY2022-001 was noted in current audit year.

H.O.L.I.E. OF GREENFIELD AVENUE, INC. VALENTINO SQUARE APARTMENTS HUD PROJECT NO. 075-EE077-WAH SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2022 FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD: FY2022-001 S3800-010 Finding Reference Number FY2022-001 S3800-011 Title and CFDA Number of Federal Program Section 202 - Supportive Housing for the Elderly - CFDA 14.157 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size Security Deposits S3800-018 Sample Size Information N/A S3800-019 Identification of Repeat Finding and Finding Reference Number Repeat Finding S3800-020 Criteria HUD requires that projects fully fund all security deposits received in a separate security deposit bank account. S3800-030 Statement of Condition The security deposit bank account was not fully funded as of June 30, 2022. S3800-032 Cause Proper internal control was not established to ensure security deposits are fully funded. S3800-033 Effect or Potential Effect The project was not in compliance with HUD security deposit requirements. S3800-035 Auditor Non-Compliance Code M ? Security Deposits S3800-040 Questioned Costs $0 S3800-045 Reporting Views of Responsible Officials Management was informed of the finding and they acknowledged that they were aware of this matter. Management deposited $500 on September 15, 2022 into the security deposit bank account to correct this finding. S3800-050 Context (Situation) The security deposit accounts were analyzed for adequacy at June 30, 2022. S3800-080 Recommendation Management has been advised to increase the security deposit bank account by $55.95 during the year ended June 30, 2023 to correct this finding. It is also recommended that management add an additional level of review at month end to ensure the security deposit account is fully funded as required by HUD. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management was informed of the finding and they acknowledged that they were aware of this matter. Management increased the security deposit bank account by $500 on September 15, 2022 to correct this finding. S3800-130 Response Indicator Agree S3800-140 Completion Date 09/15/2022 S3800-150 Response Management agrees with this finding. S3900-010 Previous Finding Reference Number FY2021-001 S3900-020 Status Indicator Cleared S3900-030 Statement of Condition The security deposit bank account was not fully funded as of June 30, 2021. S3900-040 Previous Response for Finding Management agreed with the finding and deposited $100.00 in the Security Deposit account on September 9, 2021. S3900-050 Narrative Management was informed of the finding and they acknowledged that they were aware of this matter, however, a similar audit finding FY2022-001 was noted in current audit year.