Audit 33426

2022-001 Finding Type - Immaterial noncompliance with major program requirements 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 - Annual reserve for replacement deposits are reviewed as a part of audit procedures. Sample Size Information - Monthly deposits are required for the reserve for replacement deposits and should total twelve monthly deposits. Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Corporation should have made 12 monthly deposits of $193,290 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, which caused an underfunding to the reserve for replacement totaling $33,658. Cause - The Corporation failed to monitor the cash requirements of the reserve for replacement account as specified by the regulatory agreement. Effect or Potential Effect - The replacement reserve account was underfunded in the current fiscal year by $33,658. Auditor Noncompliance Code - N - Reserve for replacements deposits Reporting Views of Responsible Officials - The Corporation agrees with the findings as reported. Context - During our testing of reserve for replacement deposits in accordance with the Regulatory Agreement, an instance of noncompliance was noted. 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 - June 30, 2023 Response -The project did not have sufficient cash on hand to make the required deposits in May and June. Management believes they have appropriate controls in place to make required deposits to the replacement reserve; however, was unable to do so without sufficient cash on hand. Management intends to make up the underfunded deposits during the year ended June 30, 2023.

2022-001 Finding Type - Immaterial noncompliance with major program requirements 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 - Annual reserve for replacement deposits are reviewed as a part of audit procedures. Sample Size Information - Monthly deposits are required for the reserve for replacement deposits and should total twelve monthly deposits. Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Corporation should have made 12 monthly deposits of $193,290 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, which caused an underfunding to the reserve for replacement totaling $33,658. Cause - The Corporation failed to monitor the cash requirements of the reserve for replacement account as specified by the regulatory agreement. Effect or Potential Effect - The replacement reserve account was underfunded in the current fiscal year by $33,658. Auditor Noncompliance Code - N - Reserve for replacements deposits Reporting Views of Responsible Officials - The Corporation agrees with the findings as reported. Context - During our testing of reserve for replacement deposits in accordance with the Regulatory Agreement, an instance of noncompliance was noted. 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 - June 30, 2023 Response -The project did not have sufficient cash on hand to make the required deposits in May and June. Management believes they have appropriate controls in place to make required deposits to the replacement reserve; however, was unable to do so without sufficient cash on hand. Management intends to make up the underfunded deposits during the year ended June 30, 2023.