Audit 319319

S3800-010: Finding Reference Number 2024-001 (Material Weakness) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly (Section 202) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: A/B - Activities Allowed or Unallowed and Allowable Costs/Cost Principles, C - Cash Management, E - Eligibility, L - Reporting, and N - Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size Unknown S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with generally accepted accounting principles (GAAP). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2024 financial statements and federal award program, we noted the below concerns regarding completeness of the financial records and adherence to compliance requirements: • Supporting documentation to evaluate the amounts reported in the financial statements was not available. • Supporting documentation to evaluate Activities Allowed or Unallowed and Allowable Costs/Cost Principles was not available. • Supporting documentation to evaluate Cash Management was not available. • Supporting documentation to evaluate Eligibility was not available. • Supporting documentation to evaluate Reporting was not available. • Supporting documentation to evaluate Special Tests and Provisions for the following criteria were not available: o Replacement reserve Management fees charged in accordance with HUD-9839B o Move-outs (security deposits), evictions, waitlist applicants and rejected applicants, and work-orders / maintenance requests S3800-032: Cause Complete records were not provided by the predecessor management company. S3800-033: Effect or Potential Effect We have not obtained sufficient audit evidence to express an opinion on the accompanying financial statements and federal award program due to the inability to perform substantive auditing procedures. S3800-035: Auditor Non-Compliance Code Z - Other S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management reported that the failure(s) involved records related to the period managed by the predecessor management company. S3800-050: Context The Organization is required to maintain books and records in accordance with GAAP. The Organization terminated its agreement with the predecessor management agent and the current management agent took over this property on November 1, 2023, after the fiscal year-end. S3800-080: Recommendation We noted these non-compliant findings involve records related to the period managed by the predecessor management agent; therefore, we do not have a recommendation regarding the period managed by the predecessor management agent. However, the current management agent should request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement and / or Capital Advance Use Agreement. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2024 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2024-001 (Material Weakness) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly (Section 202) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: A/B - Activities Allowed or Unallowed and Allowable Costs/Cost Principles, C - Cash Management, E - Eligibility, L - Reporting, and N - Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size Unknown S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with generally accepted accounting principles (GAAP). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2024 financial statements and federal award program, we noted the below concerns regarding completeness of the financial records and adherence to compliance requirements: • Supporting documentation to evaluate the amounts reported in the financial statements was not available. • Supporting documentation to evaluate Activities Allowed or Unallowed and Allowable Costs/Cost Principles was not available. • Supporting documentation to evaluate Cash Management was not available. • Supporting documentation to evaluate Eligibility was not available. • Supporting documentation to evaluate Reporting was not available. • Supporting documentation to evaluate Special Tests and Provisions for the following criteria were not available: o Replacement reserve Management fees charged in accordance with HUD-9839B o Move-outs (security deposits), evictions, waitlist applicants and rejected applicants, and work-orders / maintenance requests S3800-032: Cause Complete records were not provided by the predecessor management company. S3800-033: Effect or Potential Effect We have not obtained sufficient audit evidence to express an opinion on the accompanying financial statements and federal award program due to the inability to perform substantive auditing procedures. S3800-035: Auditor Non-Compliance Code Z - Other S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management reported that the failure(s) involved records related to the period managed by the predecessor management company. S3800-050: Context The Organization is required to maintain books and records in accordance with GAAP. The Organization terminated its agreement with the predecessor management agent and the current management agent took over this property on November 1, 2023, after the fiscal year-end. S3800-080: Recommendation We noted these non-compliant findings involve records related to the period managed by the predecessor management agent; therefore, we do not have a recommendation regarding the period managed by the predecessor management agent. However, the current management agent should request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement and / or Capital Advance Use Agreement. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2024 S3800-150: Response See Corrective Action Plan