Audit 315578

S3800-010 Finding Reference Number 2024-001 S3800-011 Title and Assistance Listing Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, 14.155 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size N/A S3800-018 Sample Size Information N/A S3800-019 Identification of Repeat Finding and Reference Number NoS3800-020 Criteria The Organization must comply with HUD guidelines regarding monthly replacement reserve deposits. S3800-030 Statement of Condition The Organization’s replacement reserve was underfunded by $7,760 as of March 31, 2024. S3800-032 Cause Mortgagee did not increase payments as required by HUD. Organization paid amount as stated on monthly mortgage statement, and prior year delinquent amount. S3800-033 Effect or Potential Effect Organization was not in compliance with HUD guidelines for replacement reserve deposit requirements. S3800-035 Auditor Non-Compliance Code N – Reserve for Replacement S3800-040 Questioned Costs $7,760 S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and has deposited the deficiency. S3800-037 FHA/Contract Number 12711240 S3800-038 Questioned Costs $7,760 S3800-080 Recommendation Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow in the correct amount. S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Management is correcting the deficiency. S3800-130 Response Indicator Agree S3800-140 Completion Date 05/14/2024 S3800-150 Response Management agrees with the finding and is in the process of replenishing the funds. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson

S3800-010 Finding Reference Number 2024-001 S3800-011 Title and Assistance Listing Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, 14.155 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size N/A S3800-018 Sample Size Information N/A S3800-019 Identification of Repeat Finding and Reference Number NoS3800-020 Criteria The Organization must comply with HUD guidelines regarding monthly replacement reserve deposits. S3800-030 Statement of Condition The Organization’s replacement reserve was underfunded by $7,760 as of March 31, 2024. S3800-032 Cause Mortgagee did not increase payments as required by HUD. Organization paid amount as stated on monthly mortgage statement, and prior year delinquent amount. S3800-033 Effect or Potential Effect Organization was not in compliance with HUD guidelines for replacement reserve deposit requirements. S3800-035 Auditor Non-Compliance Code N – Reserve for Replacement S3800-040 Questioned Costs $7,760 S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and has deposited the deficiency. S3800-037 FHA/Contract Number 12711240 S3800-038 Questioned Costs $7,760 S3800-080 Recommendation Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow in the correct amount. S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Management is correcting the deficiency. S3800-130 Response Indicator Agree S3800-140 Completion Date 05/14/2024 S3800-150 Response Management agrees with the finding and is in the process of replenishing the funds. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson