Audit 305310

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - 14.157 - U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) Finding Resolution Status - Unresolved Information on Universe and Population Size - The Corporation was subject to one Real Estate Assessment Center (REAC) inspection during 2023. Sample Size Information - N/A - Not determined via a sampling method Identification of Repeat Finding and Finding Reference Number - N/A - Not a repeat finding Criteria - The HUD Regulatory Agreement requires the property to be maintained in good repair and condition. Statement of Condition - On May 18, 2023, the Corporation had a Real Estate Center physical inspection at the property and received a rating of 40c. Cause - There are several repairs that need to be completed through the building in order for the Corporation to be in compliance with the requirements of the Regulatory Agreement. Effect or Potential Effect - As a result of the inspection, the Corporation was in violation of its Regulatory Agreement with HUD. Auditor Noncompliance Code - I - Failure to maintain the property/open physical inspection(s) Reporting Views of Responsible Officials - The Corporation agrees with the finding as reported. Context - During testing for compliance with the HUD Regulatory Agreement, one instance of a REAC physical inspection with a rating of failing (score below 60) was noted. Recommendation - All required repairs should be made in accordance with the MOR inspection and the Regulatory Agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - The Corporation should implement procedures to ensure the property is in good repair and condition to remain in compliance with the Regulatory Agreement with HUD. All repairs identified in the REAC inspection report should be made prior to the next scheduled inspection date. Response Indicator - Agree Completion Date - December 31, 2023 Response - Management acknowledges noncompliance in the current fiscal year and has addressed all of the health and safety issues as of May 19, 2023. Management has signed and submitted the standard form, Project Owner's Certification that the Physical Condition of the Project is in Compliance with HUD Contracts and the Physical Condition Standards of 24 C.F.R.sub section 5.703, dated May 19, 2023.

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - 14.157 - U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) Finding Resolution Status - Unresolved Information on Universe and Population Size - The Corporation was subject to one Real Estate Assessment Center (REAC) inspection during 2023. Sample Size Information - N/A - Not determined via a sampling method Identification of Repeat Finding and Finding Reference Number - N/A - Not a repeat finding Criteria - The HUD Regulatory Agreement requires the property to be maintained in good repair and condition. Statement of Condition - On May 18, 2023, the Corporation had a Real Estate Center physical inspection at the property and received a rating of 40c. Cause - There are several repairs that need to be completed through the building in order for the Corporation to be in compliance with the requirements of the Regulatory Agreement. Effect or Potential Effect - As a result of the inspection, the Corporation was in violation of its Regulatory Agreement with HUD. Auditor Noncompliance Code - I - Failure to maintain the property/open physical inspection(s) Reporting Views of Responsible Officials - The Corporation agrees with the finding as reported. Context - During testing for compliance with the HUD Regulatory Agreement, one instance of a REAC physical inspection with a rating of failing (score below 60) was noted. Recommendation - All required repairs should be made in accordance with the MOR inspection and the Regulatory Agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - The Corporation should implement procedures to ensure the property is in good repair and condition to remain in compliance with the Regulatory Agreement with HUD. All repairs identified in the REAC inspection report should be made prior to the next scheduled inspection date. Response Indicator - Agree Completion Date - December 31, 2023 Response - Management acknowledges noncompliance in the current fiscal year and has addressed all of the health and safety issues as of May 19, 2023. Management has signed and submitted the standard form, Project Owner's Certification that the Physical Condition of the Project is in Compliance with HUD Contracts and the Physical Condition Standards of 24 C.F.R.sub section 5.703, dated May 19, 2023.