Audit 413965

Reporting: Criteria: The Company’s 2024 Uniform Guidance submission to the Federal Audit Clearinghouse (“FAC”) was due within nine months of its year end. Condition: The Company’s 2024 Uniform Guidance submission to the FAC was not filed on time within nine months of the end of its fiscal year. Cause: The Company was delayed in reconciling the accounting records. Context: When performing our audit we noted that the 2024 Uniform Guidance submission to the FAC was not filed on a timely basis. Effect: The Company was not in compliance with the requirement to complete the filing required by the Uniform Guidance within nine months of its year end, and therefore, the Company cannot be considered a low-risk auditee next year. Recommendation: We recommend the Entity’s Uniform Guidance submission to the FAC be filed on time within nine months of the end of its fiscal year, as required. Views of the Responsible Official: See attached Corrective Action Plan.

Residual Receipts Deposits: Criteria: The project's HUD Regulatory Agreement requires surplus cash to be deposited into the residual receipts reserve account in accordance with the terms of the agreement. Condition: The project reported surplus cash of $44,485 for the prior fiscal year. However, the $44,485 was not deposited into the residual receipts reserve account as required. Questioned Costs: None. Context: The HUD Regulatory Agreement requires the project to calculate surplus cash and deposit the required amount into the residual receipts reserve account. Residual receipts are restricted funds maintained for project purposes in accordance with HUD requirements. For the prior fiscal year, the project calculated surplus cash of $44,485 that was required to be deposited into the residual receipts reserve account. Cause: Management indicated that the required deposit of prior-year surplus cash was inadvertently missed. Effect: As a result, the residual receipts reserve account was underfunded by $44,485, and the project was not in compliance with the surplus cash provisions of its HUD Regulatory Agreement. Recommendation: We recommend that management deposit the $44,485 of prior-year surplus cash into the residual receipts reserve account and establish procedures to ensure that required surplus cash deposits are identified, monitored, and made timely in accordance with the HUD Regulatory Agreement. View of Responsible Official: See attached Corrective Action Plan

Financial Reporting - Untimely Submission of Electronic Data into the HUD Real Estate Assessment Center (REAC): Criteria: HUD requires that any company required to have an audit under its requirements is also required to submit its financial information electronic submission to REAC within nine months of its year end. Condition: The Company’s 2024 electronic submission to REAC was not filed within nine months from the end of Its fiscal year. Cause: Delays in completion of audit procedures resulted in the audit report not being issued on a timely basis. Therefore, the Company’s 2024 REAC electronic submission was not completed within the nine months of the end of its fiscal year end. Questioned Costs: None noted. Context: When performing our audit, we noted that the electronic submission of financial information to REAC was not filed on a timely basis. Effect: The Company was not in compliance with the requirement to complete the filing of the Company’s 2024 electronic submission to REAC within nine months of its year end. Recommendation: We recommend that the Company’s electronic submission to REAC be filed within nine months of its year end as required.