Audit 53714

Finding No. 2022-001 - EIV not processed Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size Twenty-two (22) EIV reports not run for tenants Sample Size Information Three (3) EIV reports not run for tenants Identification of Repeat Finding and Finding Reference Number N/A Criteria The client files should reflect HUD?s Rules and Regulations set forth in the 4350.3 Rev. 1 HUD Multifamily Occupancy Handbook (the "Handbook"), Chapter 9, Enterprise Income Verification ("EIV"). Mandatory EIV applies to all programs covered by this Handbook listed in Chapter 1. Statement of Condition Tenant files were missing information and did not comply with HUD Rules and Regulations. Cause Management received information from the administrator of the HOME Program that it was not needed so they were confused as to the requirement. Effect or Potential Effect Since the property is involved with two different programs Management was confused and they did not realize they were out of compliance. Auditor Non-Compliance Code Z- Other Questioned Costs -0- There were no known questioned costs. Reporting Views of Responsible Officials FHA/Contract Number 016-EE-062 Questioned Costs $0 Context Income verification for the tenant files was not processed through the EIV system. Recommendation We recommend the client run tenant?s EIV reports during annual certifications and keep files in a separate secured place. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation Client files should reflect all HUD Rules and Regulations that pertain to the HUD program that is being administered. Response Indicator Agree Completion Date DATE Response Management agrees with eh finding and will run EIV reports during annual certifications.

Finding No. 2022-002 - Late Office of Management and Budget (OMB) Submission Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size One (1) OMB submission. Sample Size Information One (1) OMB submission Identification of Repeat Finding and Finding Reference Number N/A Criteria The Entity?s Uniform Guidance submission was due within thirty (30) days after the report date. Statement of Condition The OMB submission was not submitted before the due date. Cause The cause of the late OMB submission was management oversight due to change in auditing firm. Effect or Potential Effect The Entity was not in compliance with the requirement to complete the filing of its Uniform Guidance submission to the OMB within thirty (30) days of the report date and therefore the Entity cannot be considered a low risk auditee. Auditor Non-Compliance Code Z- Other Questioned Costs There were no known questioned costs. Reporting Views of Responsible Officials Auditee agrees with this finding. Auditee certified FY2021 OMB submission on 12/14/2022. FHA/Contract Number 016-EE-062 Questioned Costs $0 Context FY2021 OMB submission was submitted over thirty (30) days after report date. Recommendation Auditor recommends that management more closely monitor the OMB submission to ensure timely completion. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation The OMB submission should be certified within thirty (30) days after the report date. Response Indicator Agree Completion Date 12/14/2022 Response Auditee agrees with this finding. Auditee certified FY2021 OMB submission on 12/14/2022.

Finding No. 2022-001 - EIV not processed Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size Twenty-two (22) EIV reports not run for tenants Sample Size Information Three (3) EIV reports not run for tenants Identification of Repeat Finding and Finding Reference Number N/A Criteria The client files should reflect HUD?s Rules and Regulations set forth in the 4350.3 Rev. 1 HUD Multifamily Occupancy Handbook (the "Handbook"), Chapter 9, Enterprise Income Verification ("EIV"). Mandatory EIV applies to all programs covered by this Handbook listed in Chapter 1. Statement of Condition Tenant files were missing information and did not comply with HUD Rules and Regulations. Cause Management received information from the administrator of the HOME Program that it was not needed so they were confused as to the requirement. Effect or Potential Effect Since the property is involved with two different programs Management was confused and they did not realize they were out of compliance. Auditor Non-Compliance Code Z- Other Questioned Costs -0- There were no known questioned costs. Reporting Views of Responsible Officials FHA/Contract Number 016-EE-062 Questioned Costs $0 Context Income verification for the tenant files was not processed through the EIV system. Recommendation We recommend the client run tenant?s EIV reports during annual certifications and keep files in a separate secured place. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation Client files should reflect all HUD Rules and Regulations that pertain to the HUD program that is being administered. Response Indicator Agree Completion Date DATE Response Management agrees with eh finding and will run EIV reports during annual certifications.

Finding No. 2022-002 - Late Office of Management and Budget (OMB) Submission Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size One (1) OMB submission. Sample Size Information One (1) OMB submission Identification of Repeat Finding and Finding Reference Number N/A Criteria The Entity?s Uniform Guidance submission was due within thirty (30) days after the report date. Statement of Condition The OMB submission was not submitted before the due date. Cause The cause of the late OMB submission was management oversight due to change in auditing firm. Effect or Potential Effect The Entity was not in compliance with the requirement to complete the filing of its Uniform Guidance submission to the OMB within thirty (30) days of the report date and therefore the Entity cannot be considered a low risk auditee. Auditor Non-Compliance Code Z- Other Questioned Costs There were no known questioned costs. Reporting Views of Responsible Officials Auditee agrees with this finding. Auditee certified FY2021 OMB submission on 12/14/2022. FHA/Contract Number 016-EE-062 Questioned Costs $0 Context FY2021 OMB submission was submitted over thirty (30) days after report date. Recommendation Auditor recommends that management more closely monitor the OMB submission to ensure timely completion. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation The OMB submission should be certified within thirty (30) days after the report date. Response Indicator Agree Completion Date 12/14/2022 Response Auditee agrees with this finding. Auditee certified FY2021 OMB submission on 12/14/2022.

Finding No. 2022-001 - EIV not processed Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size Twenty-two (22) EIV reports not run for tenants Sample Size Information Three (3) EIV reports not run for tenants Identification of Repeat Finding and Finding Reference Number N/A Criteria The client files should reflect HUD?s Rules and Regulations set forth in the 4350.3 Rev. 1 HUD Multifamily Occupancy Handbook (the "Handbook"), Chapter 9, Enterprise Income Verification ("EIV"). Mandatory EIV applies to all programs covered by this Handbook listed in Chapter 1. Statement of Condition Tenant files were missing information and did not comply with HUD Rules and Regulations. Cause Management received information from the administrator of the HOME Program that it was not needed so they were confused as to the requirement. Effect or Potential Effect Since the property is involved with two different programs Management was confused and they did not realize they were out of compliance. Auditor Non-Compliance Code Z- Other Questioned Costs -0- There were no known questioned costs. Reporting Views of Responsible Officials FHA/Contract Number 016-EE-062 Questioned Costs $0 Context Income verification for the tenant files was not processed through the EIV system. Recommendation We recommend the client run tenant?s EIV reports during annual certifications and keep files in a separate secured place. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation Client files should reflect all HUD Rules and Regulations that pertain to the HUD program that is being administered. Response Indicator Agree Completion Date DATE Response Management agrees with eh finding and will run EIV reports during annual certifications.

Finding No. 2022-002 - Late Office of Management and Budget (OMB) Submission Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size One (1) OMB submission. Sample Size Information One (1) OMB submission Identification of Repeat Finding and Finding Reference Number N/A Criteria The Entity?s Uniform Guidance submission was due within thirty (30) days after the report date. Statement of Condition The OMB submission was not submitted before the due date. Cause The cause of the late OMB submission was management oversight due to change in auditing firm. Effect or Potential Effect The Entity was not in compliance with the requirement to complete the filing of its Uniform Guidance submission to the OMB within thirty (30) days of the report date and therefore the Entity cannot be considered a low risk auditee. Auditor Non-Compliance Code Z- Other Questioned Costs There were no known questioned costs. Reporting Views of Responsible Officials Auditee agrees with this finding. Auditee certified FY2021 OMB submission on 12/14/2022. FHA/Contract Number 016-EE-062 Questioned Costs $0 Context FY2021 OMB submission was submitted over thirty (30) days after report date. Recommendation Auditor recommends that management more closely monitor the OMB submission to ensure timely completion. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation The OMB submission should be certified within thirty (30) days after the report date. Response Indicator Agree Completion Date 12/14/2022 Response Auditee agrees with this finding. Auditee certified FY2021 OMB submission on 12/14/2022.

Finding No. 2022-001 - EIV not processed Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size Twenty-two (22) EIV reports not run for tenants Sample Size Information Three (3) EIV reports not run for tenants Identification of Repeat Finding and Finding Reference Number N/A Criteria The client files should reflect HUD?s Rules and Regulations set forth in the 4350.3 Rev. 1 HUD Multifamily Occupancy Handbook (the "Handbook"), Chapter 9, Enterprise Income Verification ("EIV"). Mandatory EIV applies to all programs covered by this Handbook listed in Chapter 1. Statement of Condition Tenant files were missing information and did not comply with HUD Rules and Regulations. Cause Management received information from the administrator of the HOME Program that it was not needed so they were confused as to the requirement. Effect or Potential Effect Since the property is involved with two different programs Management was confused and they did not realize they were out of compliance. Auditor Non-Compliance Code Z- Other Questioned Costs -0- There were no known questioned costs. Reporting Views of Responsible Officials FHA/Contract Number 016-EE-062 Questioned Costs $0 Context Income verification for the tenant files was not processed through the EIV system. Recommendation We recommend the client run tenant?s EIV reports during annual certifications and keep files in a separate secured place. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation Client files should reflect all HUD Rules and Regulations that pertain to the HUD program that is being administered. Response Indicator Agree Completion Date DATE Response Management agrees with eh finding and will run EIV reports during annual certifications.

Finding No. 2022-002 - Late Office of Management and Budget (OMB) Submission Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size One (1) OMB submission. Sample Size Information One (1) OMB submission Identification of Repeat Finding and Finding Reference Number N/A Criteria The Entity?s Uniform Guidance submission was due within thirty (30) days after the report date. Statement of Condition The OMB submission was not submitted before the due date. Cause The cause of the late OMB submission was management oversight due to change in auditing firm. Effect or Potential Effect The Entity was not in compliance with the requirement to complete the filing of its Uniform Guidance submission to the OMB within thirty (30) days of the report date and therefore the Entity cannot be considered a low risk auditee. Auditor Non-Compliance Code Z- Other Questioned Costs There were no known questioned costs. Reporting Views of Responsible Officials Auditee agrees with this finding. Auditee certified FY2021 OMB submission on 12/14/2022. FHA/Contract Number 016-EE-062 Questioned Costs $0 Context FY2021 OMB submission was submitted over thirty (30) days after report date. Recommendation Auditor recommends that management more closely monitor the OMB submission to ensure timely completion. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation The OMB submission should be certified within thirty (30) days after the report date. Response Indicator Agree Completion Date 12/14/2022 Response Auditee agrees with this finding. Auditee certified FY2021 OMB submission on 12/14/2022.