Audit 20911

S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Resolved 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, the Cooperative is required to make monthly deposits into the replacement reserve in an amount approved by HUD. S3800-030 Statement of Condition ? The Cooperative did not fund the replacement reserve in the full amount required. S3800-032 Cause ? Monthly deposits to the replacement reserve did not reflect the increase effective March 1, 2022. S3800-033 Effect or Potential Effect ? The replacement reserve is underfunded by $3,288. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $3,288 S3800-045 Reporting Views of Responsible Officials ? Management became aware of the increase in December 2022. At that time, a wire transfer was made to resolve the underfunding. S3800-050 Context ? The replacement reserve account is underfunded. S3800-080 Recommendation ? The Cooperative needs to confirm monthly replacement reserve deposits are in the amount required per HUD. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management became aware of the underfunding subsequent to the fiscal year-end and deposited the required amount to fully fund the replacement reserve. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? December 9, 2022 S3800-150 Response ? Management deposited the required amount on December 9, 2022

S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Resolved 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, the Cooperative is required to make monthly deposits into the replacement reserve in an amount approved by HUD. S3800-030 Statement of Condition ? The Cooperative did not fund the replacement reserve in the full amount required. S3800-032 Cause ? Monthly deposits to the replacement reserve did not reflect the increase effective March 1, 2022. S3800-033 Effect or Potential Effect ? The replacement reserve is underfunded by $3,288. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $3,288 S3800-045 Reporting Views of Responsible Officials ? Management became aware of the increase in December 2022. At that time, a wire transfer was made to resolve the underfunding. S3800-050 Context ? The replacement reserve account is underfunded. S3800-080 Recommendation ? The Cooperative needs to confirm monthly replacement reserve deposits are in the amount required per HUD. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management became aware of the underfunding subsequent to the fiscal year-end and deposited the required amount to fully fund the replacement reserve. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? December 9, 2022 S3800-150 Response ? Management deposited the required amount on December 9, 2022