Audit 378538

Finding reference number: #2024-002 Assistance Listing title and number (Federal award identification number and year): Project Based Rental Assistance, Assistance Listing No. 14.195 Auditor non-compliance code: N – Special Tests and Provisions 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: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $16,431 Repeat Finding: Yes Statement of condition #2024-002 (Assistance Listing No. 14.195): During the year ended March 31, 2024, the Corporation did not make the required deposit to the residual receipts account within 90 days after the end of the fiscal year, resulting in the account being underfunded at year end. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2023, REDI IV had surplus cash of $16,431. During the year ended March 31, 2024, the Corporation did not deposit surplus cash into the residual receipts account for REDI IV. At March 31, 2024, the residual receipts account for REDI IV is underfunded by $16,431. Cause: The Corporation did not make the required surplus cash deposit to the residual receipts account for REDI IV within 90 days after the end of the fiscal year. Recommendation: The Agent should transfer $16,431 from the REDI IV operating account to the residual receipts account. The Agent should make all required deposits to the residual receipts account within 90 days after the end of the fiscal year. Completion date: September 11, 2024 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure future deposits to the residual receipt account are made within 90 days after the end of the fiscal year.

Finding reference number: #2024-001 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Project Based Rental Assistance, Assistance Listing No. 14.195 Identification number See SEFA Auditor non-compliance code: P - Other 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: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of condition #2024-001: The Form SF-SAC Single Audit Data Collection Form for the year ended March 31, 2024 was not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect or potential effect: The Corporation is not in compliance with Uniform Guidance. Cause: Due to administrative delays, the Corporation was not able to complete the audit within the required timeframe. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the year ended March 31, 2024 as soon as practical. Completion date: December 31, 2025 Management response: Agreed. The Agent concurs with the finding and recommendation.

Finding reference number: #2024-003 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Auditor non-compliance code: P – Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size population: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of condition #2024-003 (Assistance Listing No. 14.155): The Partnership did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending March 31, 2024. Criteria: Pursuant to the Regulatory Agreement, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Partnership shall engage an independent, licensed Certified Public Accountant to audit the Partnership's annual financial report and to produce and furnish HUD an audit report in accordance with the requirements established by HUD. Effect: The Partnership was not in compliance with the Regulatory Agreement. Cause: The Partnership was late to provide the CPA firm (Dauby, O'Connor, & Zaleski, LLC) with open items required to complete the audited financial statements. Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Completion Date: August 5, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD. No further action is required.