Audit 323533

S3800-010 Finding Reference Number: 2023-002 S3800-011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In process S3800-017 Information on Universe and Population Size: 98 tenant files S3800-018 Sample Size Information: 12 tenant files Sample size: 12 Dollar amount: $0 S3800-019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021-004, 2022-003 S3800-020 Criteria: In accordance with the Rental Assistance Agreements with HUD, the Organization is required to recertify tenant eligibility on an annual basis. S3800-030 Statement of Condition: There were 8 out of the 12 tenant files which were processed on later than an annual basis and were late to recertify. S3800-032 Cause: After the prior management left, current staffing was not sufficient to ensure all certifications were completed timely. Also, some tenants were not willing to assist with the certification process. S3800-033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800-035 Auditor Non-Compliance Code: R - Section 8 program administration S3800-040 Questioned Costs: $0 S3800-045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800-012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800-037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800-050 Context: Management did not timely complete annual recertifications of tenants. S3800-080 Recommendation: Management should ensure annual recertifications of tenant files are being completed on a timely basis by implementing secondary review of tenant files and should document the review to be included in the files. S3800-090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800-130 Response Indicator: Agree S3800-140 Completion Date: 3/31/2024 S3800-150 Response: Ownership agreed with the finding and has implemented a corrective action plan.

S3800-010 Finding Reference Number: 2023-003 S3800-011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In process S3800-017 Information on Universe and Population Size: Replacement reserve deposits S3800-018 Sample Size Information: There was no sampling related to this finding. S3800-019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2022-004. S3800-020 Criteria: In accordance with Section 8 contracts for each property, HUD requires monthly deposits to the replacement reserves. S3800-030 Statement of Condition: During 2023, management did not make any deposits to the replacement reserves. S3800-032 Cause: Management made a decision to not make the deposits. S3800-033 Effect or Potential Effect and Perspective: Deposits to the replacement reserves are delinquent in the amount of $299,163 S3800-035 Auditor Non-Compliance Code: N - Reserve for replacements deposits S3800-040 Questioned Costs: No questioned costs. S3800-045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800-012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800-037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800-050 Context: See statement of condition. S3800-080 Recommendation: Management should implement procedures to ensure that deposits occur monthly. Management should deposit the delinquent funds as soon as possible. S3800-090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800-130 Response Indicator: Agree S3800-140 Completion Date: 3/31/2024 S3800-150 Response: Ownership agreed with the finding and has implemented a corrective action plan.

S3800-010 Finding Reference Number: 2023-002 S3800-011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In process S3800-017 Information on Universe and Population Size: 98 tenant files S3800-018 Sample Size Information: 12 tenant files Sample size: 12 Dollar amount: $0 S3800-019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021-004, 2022-003 S3800-020 Criteria: In accordance with the Rental Assistance Agreements with HUD, the Organization is required to recertify tenant eligibility on an annual basis. S3800-030 Statement of Condition: There were 8 out of the 12 tenant files which were processed on later than an annual basis and were late to recertify. S3800-032 Cause: After the prior management left, current staffing was not sufficient to ensure all certifications were completed timely. Also, some tenants were not willing to assist with the certification process. S3800-033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800-035 Auditor Non-Compliance Code: R - Section 8 program administration S3800-040 Questioned Costs: $0 S3800-045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800-012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800-037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800-050 Context: Management did not timely complete annual recertifications of tenants. S3800-080 Recommendation: Management should ensure annual recertifications of tenant files are being completed on a timely basis by implementing secondary review of tenant files and should document the review to be included in the files. S3800-090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800-130 Response Indicator: Agree S3800-140 Completion Date: 3/31/2024 S3800-150 Response: Ownership agreed with the finding and has implemented a corrective action plan.

S3800-010 Finding Reference Number: 2023-003 S3800-011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In process S3800-017 Information on Universe and Population Size: Replacement reserve deposits S3800-018 Sample Size Information: There was no sampling related to this finding. S3800-019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2022-004. S3800-020 Criteria: In accordance with Section 8 contracts for each property, HUD requires monthly deposits to the replacement reserves. S3800-030 Statement of Condition: During 2023, management did not make any deposits to the replacement reserves. S3800-032 Cause: Management made a decision to not make the deposits. S3800-033 Effect or Potential Effect and Perspective: Deposits to the replacement reserves are delinquent in the amount of $299,163 S3800-035 Auditor Non-Compliance Code: N - Reserve for replacements deposits S3800-040 Questioned Costs: No questioned costs. S3800-045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800-012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800-037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800-050 Context: See statement of condition. S3800-080 Recommendation: Management should implement procedures to ensure that deposits occur monthly. Management should deposit the delinquent funds as soon as possible. S3800-090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800-130 Response Indicator: Agree S3800-140 Completion Date: 3/31/2024 S3800-150 Response: Ownership agreed with the finding and has implemented a corrective action plan.