Audit 38763

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: The USDA Handbook requires that the balance in the security deposit account cannot be less than the security deposit obligation. Statement of Condition: The security deposit account is not fully funded. Cause: Procedures in place to ensure that tenant security deposits are fully funded were not followed. Effect or Potential Effect: The security deposits account does not have sufficient funds to make refunds to all tenants. Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The security deposit deficiency will be funded in the amount of $1,785. Management will ensure that the security deposits are properly funded in the future. Context: The security deposit account is not fully funded. Recommendation: Management should compare the reconciled cash account to the security deposit listing to ensure that there is enough cash to refund all tenant deposits. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The security deposit deficiency will be funded in the amount of $1,785. Management will ensure that the security deposits are properly funded in the future. Response Indicator: Agree Completion Date: September 19, 2022 Response: Management agrees with the finding. The security deposit deficiency will be funded in the amount of $1,785. Management will ensure that the security deposits are properly funded in the future.

Finding Reference Number: 2022-002 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Physical inspections must meet minimum rating requirements as prescribed in the USDA Handbook. Statement of Condition: The property received a score of 38c on its Physical Inspection conducted on March 28, 2022. Cause: The project?s preventative maintenance plan was ineffective. Effect or Potential Effect: Conditions must be corrected to avoid violating the USDA Handbook and the required housing quality standards. Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management has implemented a preventative maintenance plan. Context: The property received a score of 38c on its Physical Inspection conducted on March 28, 2022. Recommendation: The property should develop, implement, and maintain a preventative maintenance schedule that ensures timely and effective maintenance is performed. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management has implemented a preventative maintenance plan. Response Indicator: Agree Completion Date: September 19, 2022 Response: Management has implemented a preventative maintenance plan.

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: The USDA Handbook requires that the balance in the security deposit account cannot be less than the security deposit obligation. Statement of Condition: The security deposit account is not fully funded. Cause: Procedures in place to ensure that tenant security deposits are fully funded were not followed. Effect or Potential Effect: The security deposits account does not have sufficient funds to make refunds to all tenants. Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The security deposit deficiency will be funded in the amount of $1,785. Management will ensure that the security deposits are properly funded in the future. Context: The security deposit account is not fully funded. Recommendation: Management should compare the reconciled cash account to the security deposit listing to ensure that there is enough cash to refund all tenant deposits. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The security deposit deficiency will be funded in the amount of $1,785. Management will ensure that the security deposits are properly funded in the future. Response Indicator: Agree Completion Date: September 19, 2022 Response: Management agrees with the finding. The security deposit deficiency will be funded in the amount of $1,785. Management will ensure that the security deposits are properly funded in the future.

Finding Reference Number: 2022-002 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Physical inspections must meet minimum rating requirements as prescribed in the USDA Handbook. Statement of Condition: The property received a score of 38c on its Physical Inspection conducted on March 28, 2022. Cause: The project?s preventative maintenance plan was ineffective. Effect or Potential Effect: Conditions must be corrected to avoid violating the USDA Handbook and the required housing quality standards. Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management has implemented a preventative maintenance plan. Context: The property received a score of 38c on its Physical Inspection conducted on March 28, 2022. Recommendation: The property should develop, implement, and maintain a preventative maintenance schedule that ensures timely and effective maintenance is performed. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management has implemented a preventative maintenance plan. Response Indicator: Agree Completion Date: September 19, 2022 Response: Management has implemented a preventative maintenance plan.