Audit 304215

Assistance Listing (Federal award identification number and year): Section 212 of the Department of Veteran Affairs, Housing and Urban Development and Independent Agencies Appropriations Act 1997, Assistance Listing No. 14.157 (033-35197 and 1988) Auditor non-compliance code: Q - Failure to make Mortgage Payments Finding resolution status: Cleared 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: No Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $18,268 Statement of condition 2023-001: As of December 31, 2023, the Corporation has not made the required payment of 50% of available surplus cash from the prior fiscal period. Criteria: Pursuant to the Use Agreement and the Mortgage Restructuring Agreement, the Corporation is required to make a payment on the Restructured Loan in the amount of 50% of available surplus cash at the end of the fiscal year. Effect: The Corporation is not in compliance with the terms of the Use Agreement and the Mortgage Restructuring Agreement. Cause: Management failed to make the required payment to HUD in a timely manner. Recommendation: The delinquent payment should be made to HUD and future required payments should be made within the time period defined in the Use Agreement and Mortgage Restructuring Agreement. Completion date: February 14, 2024 Management's response: Agree. Management agrees with the recommendation and made the delinquent mortgage payment of $18,268 on February 14, 2024.

Assistance Listing (Federal award identification number and year): Section 212 of the Department of Veteran Affairs, Housing and Urban Development and Independent Agencies Appropriations Act 1997, Assistance Listing No. 14.157 (033-35197 and 1988) Auditor non-compliance code: Q - Failure to make Mortgage Payments Finding resolution status: Cleared 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: No Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $18,268 Statement of condition 2023-001: As of December 31, 2023, the Corporation has not made the required payment of 50% of available surplus cash from the prior fiscal period. Criteria: Pursuant to the Use Agreement and the Mortgage Restructuring Agreement, the Corporation is required to make a payment on the Restructured Loan in the amount of 50% of available surplus cash at the end of the fiscal year. Effect: The Corporation is not in compliance with the terms of the Use Agreement and the Mortgage Restructuring Agreement. Cause: Management failed to make the required payment to HUD in a timely manner. Recommendation: The delinquent payment should be made to HUD and future required payments should be made within the time period defined in the Use Agreement and Mortgage Restructuring Agreement. Completion date: February 14, 2024 Management's response: Agree. Management agrees with the recommendation and made the delinquent mortgage payment of $18,268 on February 14, 2024.