Audit 401516

S3800-010: Finding Reference Number 2025-001 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F)) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number 2024-001 and 2023-001 S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with HUD guidelines and generally accepted accounting principles. S3800-030: Statement of Condition Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization. S3800-032: Cause The Organization lacks adequate internal controls to ensure that books and records are kept accurately and completely. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts. S3800-035: Auditor Non-Compliance Code S – Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context On the general ledger, various accounts such as rent, vacancies, and escrow accounts did not tie to supporting documentation. The Organization did not capitalize the fixed assets as per the capitalization policy. The unadjusted net assets did not roll forward correctly from the prior year. S3800-080: Recommendation The Auditor recommends the Organization follows their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the monthly financial statements. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2026 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2025-002 (Significant Deficiency) S3800-011: Program Information Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F)) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 110 S3800-018: Sample Size Information 15 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The HUD Management Agent Handbook (4381.5) requires owners of multifamily housing to follow specific guidelines and determine requirements are being met for residents requesting maintenance of property in compliance with management’s procedures. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2025 federal award program, we noted concerns regarding adherence to compliance requirements with management procedures for work orders and tenant complaints for timely follow-up. Five of the fifteen samples were not completed in a timely manner. S3800-032: Cause The Organization did not follow HUD required procedures for housing quality standards. S3800-033: Effect or Potential Effect The Organization was not in compliance with ensuring HUD requirements are being met forresidents requesting maintenance of property via management’s procedures. S3800-035: Auditor Non-Compliance Code: I – Failure to maintain property / open physical inspection(s) S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to be in compliance with provisions in HUD Handbook 4381.5 related to work orders and tenant complaints for timely follow-up. S3800-080: Recommendation The Organization should ensure tenants requesting maintenance of property via work orders are being maintained properly and in a timely manner and review the accuracy / completeness of the documentation being processed in the work order system on a quarterly basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2026 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2025-003 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F)) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The HUD Handbook 4381.5, REV-2, CHG-2, The Management Agent Handbook requires owners of multifamily housing with supportive services for very low-income elderly persons to maintain the mortgaged premises in decent, safe, sanitary conditions. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2025 federal award program, we noted that the Organization did not have a current elevator operating certificate issued by the City of Kansas City, Missouri after March 1, 2026. S3800-032: Cause An elevator inspection was performed on December 30, 2025 which identified various safety concerns and failed items, in which the Organization has to repair. Therefore, the Organization is unable to obtain a current elevator certification until these services are restored. During this period the elevator was still in use. S3800-033: Effect or Potential Effect Safety of all persons on premises and elevators may not be safe to use. S3800-035: Auditor Non-Compliance Code: I – Failure to maintain property / open physical inspection(s) S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to have all of its necessary forms, licenses, and certifications current and up to date. S3800-080: Recommendation In general, the Organization should establish a process to ensure that they keep all necessary forms, licenses, and certifications current and up to date. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2026 S3800-150: Response See Corrective Action Plan