Audit 56258

S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? 14.181 Section 811 Capital Advance Program S3800-015 Type of Finding ? Federal Award 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 ? In accordance with the Regulatory Agreement between the Corporation and HUD, the Corporation is required to make monthly deposits into the replacement reserve. S3800-030 Statement of Condition ? The Corporation did not fund the replacement reserve in the full amount required. S3800-032 Cause ? The management company mistakenly missed three months of deposits required to be deposited into the replacement reserve. S3800-033 Effect or Potential Effect ? The replacement reserve is underfunded by $1,000. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $1,000 S3800-045 Reporting Views of Responsible Officials ? Management is aware of the underfunding and will deposit the additional $1,000. S3800-050 Context ? The replacement reserve account is underfunded. S3800-080 Recommendation ? The Corporation needs to deposit the additional $1,000 into the replacement reserve. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management is aware of the underfunding and will deposit the additional $1,000. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 2022 S3800-150 Response ? Management will deposit the additional $1,000 into the replacement reserve.

S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? 14.181 Section 811 Capital Advance Program S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Resolved 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 ? In accordance with the Regulatory Agreement between the Corporation and HUD, the Corporation is required to deposit ?surplus cash,? as defined by HUD, existing at the end of the fiscal year in a residual receipts account in the name of the Corporation within 90 days after the fiscal year-end. S3800-030 Statement of Condition ? The Corporation failed to make the required deposit to the residual receipts account within 90 days after the fiscal year-end. S3800-032 Cause ? The Corporation did not have enough funds to make the required deposit until proceeds from the replacement reserve loan were received. S3800-033 Effect or Potential Effect ? The Corporation was in violation of its Regulatory Agreement. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $8,317 S3800-045 Reporting Views of Responsible Officials ? Management was aware the funds were not deposited within the 90 days, and made the deposit once funds became available. S3800-050 Context ? The Corporation failed to make the required deposit to the residual receipts account within 90 days after fiscal year-end. S3800-080 Recommendation ? The Corporation needs to make sure deposits due to the residual receipts account are made within 90 days after the fiscal year. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management is aware of timing requirement and will confirm all future required deposits are made within 90 days of the fiscal year-end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? November 18, 2021 S3800-150 Response ? Management is aware of the timing requirement and will confirm all future required deposits are made within 90 days of the fiscal year-end.

S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? 14.181 Section 811 Capital Advance Program S3800-015 Type of Finding ? Federal Award 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 ? In accordance with the Regulatory Agreement between the Corporation and HUD, the Corporation is required to make monthly deposits into the replacement reserve. S3800-030 Statement of Condition ? The Corporation did not fund the replacement reserve in the full amount required. S3800-032 Cause ? The management company mistakenly missed three months of deposits required to be deposited into the replacement reserve. S3800-033 Effect or Potential Effect ? The replacement reserve is underfunded by $1,000. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $1,000 S3800-045 Reporting Views of Responsible Officials ? Management is aware of the underfunding and will deposit the additional $1,000. S3800-050 Context ? The replacement reserve account is underfunded. S3800-080 Recommendation ? The Corporation needs to deposit the additional $1,000 into the replacement reserve. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management is aware of the underfunding and will deposit the additional $1,000. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 2022 S3800-150 Response ? Management will deposit the additional $1,000 into the replacement reserve.

S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? 14.181 Section 811 Capital Advance Program S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Resolved 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 ? In accordance with the Regulatory Agreement between the Corporation and HUD, the Corporation is required to deposit ?surplus cash,? as defined by HUD, existing at the end of the fiscal year in a residual receipts account in the name of the Corporation within 90 days after the fiscal year-end. S3800-030 Statement of Condition ? The Corporation failed to make the required deposit to the residual receipts account within 90 days after the fiscal year-end. S3800-032 Cause ? The Corporation did not have enough funds to make the required deposit until proceeds from the replacement reserve loan were received. S3800-033 Effect or Potential Effect ? The Corporation was in violation of its Regulatory Agreement. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $8,317 S3800-045 Reporting Views of Responsible Officials ? Management was aware the funds were not deposited within the 90 days, and made the deposit once funds became available. S3800-050 Context ? The Corporation failed to make the required deposit to the residual receipts account within 90 days after fiscal year-end. S3800-080 Recommendation ? The Corporation needs to make sure deposits due to the residual receipts account are made within 90 days after the fiscal year. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management is aware of timing requirement and will confirm all future required deposits are made within 90 days of the fiscal year-end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? November 18, 2021 S3800-150 Response ? Management is aware of the timing requirement and will confirm all future required deposits are made within 90 days of the fiscal year-end.