Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (053-EE058 and 1996) Auditor non-compliance code: N – Reserve for Replacements Deposits Finding resolution status: In Process 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: $8,474 Statement of condition 2025-001: All the required monthly reserve for replacements deposits were not made during the year ended September 30, 2025. Criteria: The Regulatory Agreement requires monthly deposits into a separate replacement reserve account in the amount of $5,035. Effect: The Project is not in compliance with the terms of the Regulatory Agreement. The reserve for replacements account is underfunded by $8,474 at September 30, 2025. Cause: Management was unable to make the full deposit to the reserve for replacements account for the final two months of the year. Recommendation: Management should transfer $8,474 into the reserve for replacements account from the operating cash account as soon as possible. Completion Date: In Process Management's response: Management concurs with the finding and agrees with the recommendation and will transfer $8,474 to the reserve for replacements account from the operating cash account as soon as funds are available.