Audit 371688

S3800-010: Finding Reference Number 2025-001 (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 Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: 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 N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number 2024-001, 2023-001, 2022-001 S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with HUD guidelines and generally accepted accounting principles. S3800-030: Statement of Condition Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization. S3800-032: Cause The Organization lacks adequate internal controls to ensure that books and records are kept accurately and completely. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts. S3800-035: Auditor Non-Compliance Code S – Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with auditor’s finding. S3800-050: Context On the general ledger, accounts receivable, accounts payable, prepaid rents, rent revenue, cash and tenant security deposits did not tie to supporting documentation. The expenses were also not capitalized as per the capitalization policy. The unadjusted net assets did not roll forward correctly from the prior year. S3800-080: Recommendation The Auditor recommends the Organization follows their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the monthly financial statements. 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 December 31, 2025 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2025-002 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards 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 Finding Reference Number N/A S3800-020: Criteria Owners of insured and assisted multifamily housing projects are required by HUD administrative guidelines to have a HUD approved Project Owner’s/Management Agent’s Certification for housing projects managed by Administrators for extremely or very low-income persons (Form 9839-B). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2025 federal award program, we noted the Organization did not have a HUD approved Form 9839-B from March 1, 2025 through March 31, 2025. S3800-032: Cause The Organization did not submit a timely request to approve the management agent. S3800-033: Effect or Potential Effect As of March 31, 2025 the management agent had not been approved; however, on August 4, 2025 HUD retroactively approved the management agent effective March 1, 2025. S3800-035: Auditor Non-Compliance Code J – Unauthorized management fees S3800-040: Questioned Costs $0 S3800-045: Reporting Views of Responsible Officials Management agrees with auditor’s finding. S3800-050: Context The Organization is required to have all of its necessary forms and licenses current and up to date. S3800-080: Recommendation The Organization should timely submit the request to approve the management agent. 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 July 24, 2025 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2025-003 (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 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, E – Eligibility, and N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number 2024-002, 2024-003, 2023-002, 2023-003 S3800-020: Criteria The Regulatory Agreement, HUD Handbook 4350.3, and HUD Handbook 4381.5 requires that Organizations are compliant with procedures for allowable activities and costs, accepting applicants, managing the waitlist, determining initial eligibility and recertifying tenants annually, determining a tenant’s rent and subsidy, and work orders and tenant complaints. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2025 federal award program, we noted the below concerns regarding adherence to compliance requirements: • Supporting documentation to evaluate Activities Allowed or Unallowed and Allowable Costs/Cost Principles was not available. • Supporting documentation to evaluate Eligibility was not available. • Supporting documentation to evaluate Special Tests and Provisions for the following criteria were not available: o Move-outs (security deposits), waitlist applicants, and work-orders / maintenance requests S3800-032: Cause Management did not perform internal control processes and procedures to ensure adherence to HUD compliance requirements. S3800-033: Effect or Potential Effect We have not obtained sufficient audit evidence to express an opinion on the accompanying 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 Auditee has not had time to evaluate Auditor’s finding. S3800-050: Context The Organization is required to comply with the Regulatory Agreement and HUD handbooks. S3800-080: Recommendation The management agent should keep all required documentation in tenant files and establish processes and procedures to ensure compliance with the provisions in HUD Handbook 4350.3, HUD Handbook 4381.5, and the Regulatory 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 December 31, 2025 S3800-150: Response See Corrective Action Plan