Audit 378169

Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 101-HD029, 2004) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Cleared Universe population size: 12 months of reserve for replacements deposits. Sample size information: 12 months of reserve for replacements deposits. Statistically valid sample: N/A Name of Federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $5,634 Statement of condition 2025-001: The Corporation did not make $5,634 of the total required reserve for replacements deposits during the year ended March 31, 2025. Criteria: Section 26(c) of the PRAC requires monthly deposits into a separate reserve for replacements account. Effect: The Corporation is not in compliance with the terms of the PRAC. At March 31, 2025, the reserve for replacements account is underfunded by $5,634. Cause: Management did not make the required monthly reserve for replacements deposits. Recommendation: Management should make all required deposits to the reserve for replacements fund. Management should transfer $5,634 from the operating account to the reserve for replacements fund. Management's response: Agreed. Management concurs with the finding and the auditor's recommendation. The Corporation made additional deposits totaling $5,634 to the reserve for replacements fund.

Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 101-HD029, 2004) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2025-001: At March 31, 2025, the Corporation's reserve for replacements fund was not invested in an interest bearing account. Criteria: The Regulatory Agreement requires that the reserve for replacements fund be held in a separate, interest-bearing account. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. Cause: The Corporation did not invest the reserve for replacements fund in an interest-bearing account. Recommendation: Management should transfer the reserve for replacements fund into an interestbearing account. Management Response: Agreed. Management concurs with the finding and auditor's recommendation.