Audit 8757

S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards 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 2022-001 S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with HUD guidelines and generally accepted accounting principles. S3800-030: Statement of Condition Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization. S3800-032: Cause The Organization lacks adequate internal controls to ensure that books and records are kept accurately and completely. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts. S3800-035: Auditor Non-Compliance Code S – Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with auditor’s finding. S3800-050: Context On the general ledger, accounts receivable, prepaid rents, and tenant security deposits did not tie to supporting documentation. The expenses were also not capitalized as per the capitalization policy. The Organization did not record the prior year audit adjusting entries as well due to which the unadjusted net assets did not roll forward correctly from the prior year. S3800-080: Recommendation The Auditor recommends the Organization follows their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the monthly financial statements. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date December 31, 2023 S3800-150: Response See Corrective Action Plan

S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E - Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 53 S3800-018: Sample Size Information 10 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD-subsidized, multifamily housing properties must follow specific guidelines for determining eligibility and establishing and maintaining security deposits for tenants moving out; and determine whether they are in compliance with provisions in the HUD Handbook (4350.3). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2023 federal award program, we noted that the Organization did not have the necessary documentation related to security deposits for five tenants and move-outs for three tenants in their files. S3800-032: Cause The Organization did not follow HUD required procedures for eligibility and security deposits. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to determining initial eligibility and establishing and maintaining security deposits for tenants moving out. S3800-035: Auditor Non-Compliance Code M – Security deposits S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with the auditor’s finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant eligibility and establishing and maintaining security deposits for tenants moving out. S3800-080: Recommendation The Organization should follow procedures to ensure tenant eligibility and establishing and maintaining security deposits for tenants moving out and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date December 31, 2023 S3800-150: Response See Corrective Action Plan

S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: A/B – Activities Allowed or Unallowed and Allowable Costs/Cost Principles S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 53 S3800-018: Sample Size Information 250< S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria Per 24 CFR Part 891, PRAC project funds may be used only for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2023 federal award program, we noted that the Organization did not maintain proper documentation to support the payments made for six of the twenty-five samples. S3800-032: Cause The Organization did not follow HUD required procedures for activities allowed or unallowed and allowable costs and cost principles and Management is not following processes in place that require supporting documentation to be included with all expenditures. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to activities allowed or unallowed and allowable costs and cost principles and payments made may not be allowed. S3800-035: Auditor Non-Compliance Code S – Internal control deficiencies S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with auditor’s finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to activities allowed or unallowed and allowable costs and cost principles. S3800-080: Recommendation The Organization should follow procedures to ensure expenditures include supporting documentation before they are posted to the general ledger, and the Organization should review the accuracy / completeness of the documentation prior to making payment. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date December 31, 2023 S3800-150: Response See Corrective Action Plan

S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards 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 2022-001 S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with HUD guidelines and generally accepted accounting principles. S3800-030: Statement of Condition Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization. S3800-032: Cause The Organization lacks adequate internal controls to ensure that books and records are kept accurately and completely. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts. S3800-035: Auditor Non-Compliance Code S – Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with auditor’s finding. S3800-050: Context On the general ledger, accounts receivable, prepaid rents, and tenant security deposits did not tie to supporting documentation. The expenses were also not capitalized as per the capitalization policy. The Organization did not record the prior year audit adjusting entries as well due to which the unadjusted net assets did not roll forward correctly from the prior year. S3800-080: Recommendation The Auditor recommends the Organization follows their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the monthly financial statements. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date December 31, 2023 S3800-150: Response See Corrective Action Plan

S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E - Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 53 S3800-018: Sample Size Information 10 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD-subsidized, multifamily housing properties must follow specific guidelines for determining eligibility and establishing and maintaining security deposits for tenants moving out; and determine whether they are in compliance with provisions in the HUD Handbook (4350.3). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2023 federal award program, we noted that the Organization did not have the necessary documentation related to security deposits for five tenants and move-outs for three tenants in their files. S3800-032: Cause The Organization did not follow HUD required procedures for eligibility and security deposits. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to determining initial eligibility and establishing and maintaining security deposits for tenants moving out. S3800-035: Auditor Non-Compliance Code M – Security deposits S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with the auditor’s finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant eligibility and establishing and maintaining security deposits for tenants moving out. S3800-080: Recommendation The Organization should follow procedures to ensure tenant eligibility and establishing and maintaining security deposits for tenants moving out and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date December 31, 2023 S3800-150: Response See Corrective Action Plan

S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: A/B – Activities Allowed or Unallowed and Allowable Costs/Cost Principles S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 53 S3800-018: Sample Size Information 250< S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria Per 24 CFR Part 891, PRAC project funds may be used only for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2023 federal award program, we noted that the Organization did not maintain proper documentation to support the payments made for six of the twenty-five samples. S3800-032: Cause The Organization did not follow HUD required procedures for activities allowed or unallowed and allowable costs and cost principles and Management is not following processes in place that require supporting documentation to be included with all expenditures. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to activities allowed or unallowed and allowable costs and cost principles and payments made may not be allowed. S3800-035: Auditor Non-Compliance Code S – Internal control deficiencies S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with auditor’s finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to activities allowed or unallowed and allowable costs and cost principles. S3800-080: Recommendation The Organization should follow procedures to ensure expenditures include supporting documentation before they are posted to the general ledger, and the Organization should review the accuracy / completeness of the documentation prior to making payment. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date December 31, 2023 S3800-150: Response See Corrective Action Plan