Audit 22072

Finding reference number: 2022-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (122-EE032 and 2009) Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve Finding resolution status: In Process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $857 Statement of condition 2022-001: During the year ended September 30, 2022, management made duplicate withdrawals from the reserve for replacements account totaling $857. The reserve for replacements account was not reimbursed for these duplicate withdrawals. Criteria: Pursuant to item 5(a) of the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Community. Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of September 30, 2022, the reserve for replacements account is underfunded by $857. Cause: Management inadvertently submitted a reserve for replacements withdrawal request to HUD, which included duplicate invoices totaling $857. Recommendation: Management should transfer funds of $857 from the operating cash account to the reserve for replacements account. Management's response: Agree. Management intends to transfer $857 from the operating cash account to the reserve for replacements account.

Finding reference number: 2022-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (122-EE032 and 2009) Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve Finding resolution status: In Process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $857 Statement of condition 2022-001: During the year ended September 30, 2022, management made duplicate withdrawals from the reserve for replacements account totaling $857. The reserve for replacements account was not reimbursed for these duplicate withdrawals. Criteria: Pursuant to item 5(a) of the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Community. Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of September 30, 2022, the reserve for replacements account is underfunded by $857. Cause: Management inadvertently submitted a reserve for replacements withdrawal request to HUD, which included duplicate invoices totaling $857. Recommendation: Management should transfer funds of $857 from the operating cash account to the reserve for replacements account. Management's response: Agree. Management intends to transfer $857 from the operating cash account to the reserve for replacements account.

Finding reference number: 2022-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (122-EE032 and 2009) Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve Finding resolution status: In Process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $857 Statement of condition 2022-001: During the year ended September 30, 2022, management made duplicate withdrawals from the reserve for replacements account totaling $857. The reserve for replacements account was not reimbursed for these duplicate withdrawals. Criteria: Pursuant to item 5(a) of the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Community. Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of September 30, 2022, the reserve for replacements account is underfunded by $857. Cause: Management inadvertently submitted a reserve for replacements withdrawal request to HUD, which included duplicate invoices totaling $857. Recommendation: Management should transfer funds of $857 from the operating cash account to the reserve for replacements account. Management's response: Agree. Management intends to transfer $857 from the operating cash account to the reserve for replacements account.

Finding reference number: 2022-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (122-EE032 and 2009) Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve Finding resolution status: In Process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $857 Statement of condition 2022-001: During the year ended September 30, 2022, management made duplicate withdrawals from the reserve for replacements account totaling $857. The reserve for replacements account was not reimbursed for these duplicate withdrawals. Criteria: Pursuant to item 5(a) of the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Community. Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of September 30, 2022, the reserve for replacements account is underfunded by $857. Cause: Management inadvertently submitted a reserve for replacements withdrawal request to HUD, which included duplicate invoices totaling $857. Recommendation: Management should transfer funds of $857 from the operating cash account to the reserve for replacements account. Management's response: Agree. Management intends to transfer $857 from the operating cash account to the reserve for replacements account.