Audit 303893

S3800-010 Finding reference number 2023-001 S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157 S3800-015 Type of finding Federal Award Finding and Internal Control over Compliance S3800-016 Finding resolution status Complete S3800-017 Information on universe population size not applicable S3800-018 Sample size information not applicable S3800-019 Identification of repeat finding and finding reference number not applicable S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that project funds may be used only for expenses that are reasonable and necessary to the operation of the project. S3800-030 Statement of condition The Organization advanced funds to a related party for the purpose of funding costs related to the operation of the project in the amount of $104,413 from the replacement reserve without HUD approval. S3800-032 Cause Affordable housing project costs S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary obligations of the project. S3800-035 Auditor non-compliance code G - Unauthorized loans from project assets S3800-037 FHA/Contract number 074-EE042 S3800-040 Questioned costs $104,413 S3800-045 Reporting views of responsible officials Management agrees. S3800-080 Recommendation Management should monitor internal controls over compliance and receive HUD approval before approving future loans from project assets and transferring funds from the replacement reserve. S3800-090 Auditors' summary of the auditee's comments on the findings and recommendations Management concurs. S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date October 31, 2023 S3800-150 Response The funds were repaid on January 12, 2024.

S3800-010 Finding reference number 2023-001 S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157 S3800-015 Type of finding Federal Award Finding and Internal Control over Compliance S3800-016 Finding resolution status Complete S3800-017 Information on universe population size not applicable S3800-018 Sample size information not applicable S3800-019 Identification of repeat finding and finding reference number not applicable S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that project funds may be used only for expenses that are reasonable and necessary to the operation of the project. S3800-030 Statement of condition The Organization advanced funds to a related party for the purpose of funding costs related to the operation of the project in the amount of $104,413 from the replacement reserve without HUD approval. S3800-032 Cause Affordable housing project costs S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary obligations of the project. S3800-035 Auditor non-compliance code G - Unauthorized loans from project assets S3800-037 FHA/Contract number 074-EE042 S3800-040 Questioned costs $104,413 S3800-045 Reporting views of responsible officials Management agrees. S3800-080 Recommendation Management should monitor internal controls over compliance and receive HUD approval before approving future loans from project assets and transferring funds from the replacement reserve. S3800-090 Auditors' summary of the auditee's comments on the findings and recommendations Management concurs. S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date October 31, 2023 S3800-150 Response The funds were repaid on January 12, 2024.