Audit 379565

Type of Finding: Material Weakness in Internal Control over Financial Condition: The Corporation does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation’s internal controls. Criteria or Specific Requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Corporation has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed and approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2024-001. Recommendation: The Corporation should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 Capital Advance Assistance Living Number: 14.157 Type of Finding: Significant Deficiency in Internal Control over Compliance Compliance Criteria or Specific Requirement: Internal controls should be in place to ensure that management monitors the bank rating quarterly for financial institutions that the Corporation holds funds at. Condition: The Corporation did not monitor the rating of the bank. Questioned Costs: N/A Context: While performing audit procedures, it was noted that the Corporation did not monitor the rating of the bank. Cause: The Corporation did not monitor the rating of the bank. Effect: Bank Rating was not monitored as required by HUD. Repeat Finding: No Recommendation: The Corporation should review the policy surrounding the procedures regarding the quarterly review of the bank ratings for financial institutions that the Corporation holds funds with. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding and management will make adjustments to the policy surrounding the procedures regarding the quarterly review of the bank ratings for financial institutions during the fiscal year ended September 30, 2026.