Audit 30920

Finding Type: Noncompliance which could have a direct and material effect on the major programs Title and CFDA Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202) Capital Advance Finding Resolution Status: In Process Information on Universe and Population Size: All replacement reserve deposits were audited which totals twelve monthly deposits Sample Size Information: All replacement reserve deposits were audited which totals twelve monthly deposits Identification of Repeat Finding and Finding Reference Number: n/a Criteria: The Corporation should have made 12 monthly deposits of $4,900 into the reserve for replacements account as required by the regulatory agreement. Statement of Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year due to cash flow shortages which were in part due to not receiving PRAC payments for a portion of the year. The Corporation made 12 deposits of $1,170 rather then the required deposit amount of $4,900. Cause: The Corporation monitored the cash requirements of the reserve for replacement account as specified by the regulatory agreement, however the Corporation was unable to make the required deposits due to cash flow shortages. Effect or Potential Effect: The replacement reserve account was underfunded in the current fiscal year by $14,700. Auditor Noncompliance Code: N Reserve for replacements deposits Reporting Views of Responsible Officials: Management agrees with the underfunded amount at August 31, 2022. Context: The replacement reserve deposit increase was not able to be made due to cash flow shortages. The Corporation received outstanding PRAC payments subsequent to year end and are making payments to correct the underfunding. Recommendation: All required deposits should be made in accordance with the regulatory agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management should make the required reserve for replacements deposits in the current fiscal year. Response Indicator: Agree Completion Date: August 31, 2023 Response: Management acknowledges noncompliance in the current fiscal year which were due to cash flow shortages and delays in obtaining a new PRAC contract. Management will be making payments during the year ended August 31, 2022 in order to correct the funding of the replacement reserve account.

Finding Type: Noncompliance which could have a direct and material effect on the major programs Title and CFDA Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202) Capital Advance Finding Resolution Status: In Process Information on Universe and Population Size: All replacement reserve deposits were audited which totals twelve monthly deposits Sample Size Information: All replacement reserve deposits were audited which totals twelve monthly deposits Identification of Repeat Finding and Finding Reference Number: n/a Criteria: The Corporation should have made 12 monthly deposits of $4,900 into the reserve for replacements account as required by the regulatory agreement. Statement of Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year due to cash flow shortages which were in part due to not receiving PRAC payments for a portion of the year. The Corporation made 12 deposits of $1,170 rather then the required deposit amount of $4,900. Cause: The Corporation monitored the cash requirements of the reserve for replacement account as specified by the regulatory agreement, however the Corporation was unable to make the required deposits due to cash flow shortages. Effect or Potential Effect: The replacement reserve account was underfunded in the current fiscal year by $14,700. Auditor Noncompliance Code: N Reserve for replacements deposits Reporting Views of Responsible Officials: Management agrees with the underfunded amount at August 31, 2022. Context: The replacement reserve deposit increase was not able to be made due to cash flow shortages. The Corporation received outstanding PRAC payments subsequent to year end and are making payments to correct the underfunding. Recommendation: All required deposits should be made in accordance with the regulatory agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management should make the required reserve for replacements deposits in the current fiscal year. Response Indicator: Agree Completion Date: August 31, 2023 Response: Management acknowledges noncompliance in the current fiscal year which were due to cash flow shortages and delays in obtaining a new PRAC contract. Management will be making payments during the year ended August 31, 2022 in order to correct the funding of the replacement reserve account.