Audit 378174

Finding No. 2025-001; Supportive Housing for the Elderly, CFDA 14.157 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4571.3, Section 202 Supportive Housing for the Elderly. Condition In connection with our lease file testing, we noted the following deficiencies: One out of one new tenant did not have an EIV run within 90 days of the tenant moving into the property. Two out of four existing tenants did not have an EIV run within 120 days prior to the date the annual recertification was performed. Cause There was an administrative error involving personnel involved in the certification and annual recertification process resulting in the EIV reports and annual recertification not being run in accordance with the HUD program guidelines. Effect or Potential Effect The Corporation is not in compliance with HUD Program guidelines. Context A sample of five tenant files were selected from a population of 45 units. We identified exceptions in three out of the five files tested. Repeat Finding This finding is a repeat finding (see prior year finding #2024-001). Recommendation The Corporation should ensure that EIV reports are run timely and annual recertifications are performed timely in accordance with the HUD Program guidelines, and it should monitor its compliance with those policies and procedures. Auditor Noncompliance Code: R - HUD Section 202 program administration Views of Responsible Officials Management concurs with the finding. Management has communicated with the staff the importance of timely annual tenant recertifications and EIV reporting. On a going forward basis, management will enhance its monitoring of compliance with these requirements to ensure that annual tenant recertifications are completed and EIVs are run within an appropriate time frame.

Finding No. 2025-002; Supportive Housing for the Elderly, CFDA 14.157 Criteria Uniform Guidance requires that the data collection form be submitted by the earlier of 30 days from report date of the audited financial statements or nine months after the fiscal year end. Condition The data collection form for the Corporation was not filed electronically with the Federal Audit Clearinghouse by the earlier of 30 days from report date of the audited financial statements or nine months after the fiscal year end of the Project for the year ended June 30, 2024. Cause Controls were not in place to properly track the timely filing of the data collection form. Effect or Potential Effect Compliance with the requirement to timely submit the data collection form to the Federal Audit Clearinghouse was not met. Context The data collection form was filed with the Federal Audit Clearinghouse on December 16, 2024. The filing took place more than 30 days after the report date of the audited financial statements. Repeat Finding This finding is not a repeat finding. Recommendation The Corporation should put procedures in place to ensure that the data collection form is electronically filed with the Federal Audit Clearinghouse by the earlier of 30 days from report date of the audited financial statements or nine months after the fiscal year end of the Project. Additionally, the Corporation should monitor its compliance with those policies and procedures. Auditor Noncompliance Code: Z - Other Finding Resolution Status: Resolved Views of Responsible Officials Management concurs with the finding and the auditor's recommendations have been adopted. Procedures are in place to ensure the timely filing of the data collection form with the Federal Audit Clearinghouse.

Finding No. 2025-003; Supportive Housing for the Elderly, CFDA 14.157 Criteria In accordance with the regulatory agreement, the audited financial statements and electronic submission are required to be completed and filed with REAC within 90 days of the Corporation's fiscal year end. Condition The Corporation did not timely complete its audited financial statements and the required electronic submission to the Real Estate Assessment Center (REAC) via the Financial Assessment Subsystem, as required by HUD, related to the audited financial statements for the year ended June 30, 2024. Cause Controls were not in place to properly track the timely filing of the audited financial statements and REAC submission. Effect or Potential Effect Compliance with the requirement to timely submit the audited financial statements and REAC to HUD was not met. Context The audited financial statements and REAC submission were filed with HUD on November 22, 2024. The filing took place more than 90 days after the Corporation's fiscal year end. Repeat Finding This finding is not a repeat finding. Recommendation Management should establish procedures to ensure timely completion and submission of the audited financial statements and electronic filing with the Real Estate Assessment Center via the Financial Assessment Subsystem, within the 90 days after the fiscal year end. Auditor Noncompliance Code: Z - Other Finding Resolution Status: Resolved Views of Responsible Officials Management concurs with the finding and the auditor's recommendations have been adopted. Procedures are in place to ensure the timely filing of the audited financial statements and REAC submission with HUD.