Audit 409856

Finding reference number: 2025-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: N – Reserve for Replacement Deposits Finding resolution status: Resolved 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: $2,423 Statement of condition 2025-001: During the year ended June 30, 2025, the Corporation did not make the require deposits to the reserve for replacements. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to make deposits to the reserve for replacements in the required amount of $29,076. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded by $2,423 at June 30, 2025. Cause: The Corporation's deposits to the reserve for replacements were $2,423 less than the required deposits by HUD. Recommendation: Management should make a deposit to the reserve for replacements for $2,423 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management made a deposit of $2,423 in July 2025 for the delinquent deposits.

Finding reference number: 2025-002 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved 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 Statement of condition 2025-002: For the year ended June 30, 2024, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on April 25, 2025. Criteria: Pursuant to 2 CFR 200.512(a), the Corporation is required to electronically submit audited financial statements to the Federal Audit Clearinghouse within the earlier of 30 days after receipts of the auditor's report or nine months after the end of the audit period. Effect: The Corporation is not in compliance with the federal reporting requirements. Cause: There was a delay in the approval of the required form. Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to the Federal Audit Clearinghouse. No further action is required.

Finding reference number: 2025-003 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z – Other Finding resolution status: Resolved 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 Statement of condition 2025-003: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days or 9 months if owner certified following the year ended June 30, 2025. Criteria: Pursuant to the Regulatory Agreement, within 90 days, or such a period established in writing by HUD, following the fiscal year end, the Corporation is required to furnish to HUD a complete annual financial report based upon the examination of the books and records of the Corporation prepared in accordance with GAAP and with the requirements of HUD, and audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. Effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The annual financial report was not submitted on time. Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Management's response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD. No further action is required.

Finding reference number: 2025-004 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: H – Unauthorized distribution of project assets Finding resolution status: Unresolved 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: $21,398 Statement of condition 2025-004: The Corporation paid entity costs of $21,398 from operating cash. Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds except for operation of the Property as provided in the Regulatory and Capital Advance Agreements. Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and Capital Advance Agreements and the Property's operating account is underfunded by $21,398. This amount is included on the computation of surplus cash, distributions, and residual receipts so not to understate the deposit due to the residual receipts account. Cause: Management oversight. Recommendation: The Corporation should request retroactive HUD approval to make the payments or request reimbursement from the Board of Directors. Management's response: Management concurs with the finding and recommendation. Management has requested approval from HUD. As of the report date, no response has been received.