Corrective Action Plans

Finding 1187218 (2025-062)

Material Weakness 2025

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties HUD Housing Programs § 200.303

Department: Health and Human Services Title: Internal control over Medicaid drug rebates needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. Drug Rebate pre-invoicing and post-i...

Department: Health and Human Services Title: Internal control over Medicaid drug rebates needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. Drug Rebate pre-invoicing and post-invoicing is completed quarterly. As demonstrated during walkthroughs and during our meetings Maine completes specific tasks to ensure accuracy of the invoicing process. The pre-invoicing and post-invoicing procedures are documented in the Pharmacy Rebate Information Management System (PRIMS) Desk Level Procedure (DLP). The pre-invoicing work is performed by the State that compares drug utilization data to the number of dispensed units invoiced. Upon the completion of the pre-invoicing review approval is provided to the vendor allowing them to continue with the invoicing process. There is no requirement regarding how we select our sample of invoices to review. Based on OSA noting no exceptions to the drug rebate amounts, our system in place to review invoiced drug rebates is functioning as intended. Completion Date: N/A Agency Contact: Michelle Probert, Director, Office of MaineCare Services, DHHS, 207-287-2093

View Audit 394838

Finding 1187100 (2025-001)

Material Weakness 2025

Housing Authority of the City of Lawton

OK

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Eligibility

LAWTON HOUSING AUTHORITY 609 SW F Avenue Lawton, OK 73501 Phone No. (580) 353-7392 Fax No. (580) 353-6111 HOUSING AUTHORITY OF LAWTON, OKLAHOMA CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Finding 2025-001-Interfund Payables Need To Be Reduced Condition Funds may not be permanently used and thus ...

LAWTON HOUSING AUTHORITY 609 SW F Avenue Lawton, OK 73501 Phone No. (580) 353-7392 Fax No. (580) 353-6111 HOUSING AUTHORITY OF LAWTON, OKLAHOMA CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Finding 2025-001-Interfund Payables Need To Be Reduced Condition Funds may not be permanently used and thus transferred between funds. Low Rent funds must ultimately be used for Low Rent purposes, Housing Choice Voucher (HCV) funds used for HCV purposes, etc. Funds may be temporarily loaned in essence, when one fund pays overhead for the other, such as a split payroll. However, the loans should be promptly repaid, and the interfund receivables and payables kept to a minimum and in an evergreen situation. Corrective Action Planned: I am Anna Richman, Executive Director and Designated Person to answer these findings. As a new E.D., I have only recently become aware of this situation. To reduce the interfund amounts, the avenues we may pursue include but are not limited to the following: Nonfederal funds are maintained in the State and Local Fund. For reporting purposes, this fund is combined with the Low Rent program to comprise the General Fund. We may transfer some of these nonfederal funds to the Component Unit and the HCV Fund to allow them to reduce the interfund loans. Nonfederal funds may be used for this purpose. In addition, we may transfer an increased percentage of the HCV Admin fee to be periodically transferred to the General Fund. We also note that if and when the tangible property of the Veterans Resource Center is ever sold, the funds would revert to the General Fund. Person Responsible for Corrective Action: Anna Richman, Executive Director Telephone: (580) 353-7392 Housing Authority of Lawton Fax: (580) 353-6111 609 SW F Avenue Lawton, OK 73501 Anticipated Completion Date- June 30, 2026

View Audit 394835

Finding 1187069 (2025-002)

Material Weakness 2025

Uda Dempsey, LLC

GA

HUD Housing Programs Internal Control / Segregation of Duties

Management will implement a process to ensure all required documentation is maintained on file.

View Audit 394799

Finding 1187058 (2025-001)

Material Weakness 2025

Housing Authority of the City of Waterbury

CT

HUD Housing Programs Cash Management

2025-001 Federal Ward Findings and Questioned Costs Material Noncompliance/Material Weakness ALN: 14.872 Public Housing Capital Fund Finding summary: The Authority recorded unearned revenue related to the Capital Fund drawdowns for operations on the Central Office Cost Center. This amount should hav...

2025-001 Federal Ward Findings and Questioned Costs Material Noncompliance/Material Weakness ALN: 14.872 Public Housing Capital Fund Finding summary: The Authority recorded unearned revenue related to the Capital Fund drawdowns for operations on the Central Office Cost Center. This amount should have been reflected as revenue on the public housing programs. Statement of Concurrence: The Authority agrees with the finding. Corrective Action Plan: The Authority did not spend capital fund draw downs on the COCC program. The Authority’s practice was to record drawdowns as deferred revenue on COCC until they were spent and at that time moved the expenditures to the public housing programs. Going forward the Authority will record the drawdowns as revenue for the public housing programs when they are drawn down. Effective immediately, the Comptroller, Jennifer Yager, will implement this policy. Jennifer can be reached at 203-596-2640 and Jennifer.yager@waterburyha.org.

View Audit 394748

Finding 1186930 (2025-001)

Material Weakness 2025

Ditson Street Senior Housing, Inc.

MA

HUD Housing Programs

2025-001 Replacement Reserve Deposits 14.157 Supportive Housing for the Elderly Responsible Official Ellen Mason, Executive Director Plan Detail Management will continue to monitor its cash flows to ensure that daily operations are paid for and the required monthly replacement reserve is made with a...

2025-001 Replacement Reserve Deposits 14.157 Supportive Housing for the Elderly Responsible Official Ellen Mason, Executive Director Plan Detail Management will continue to monitor its cash flows to ensure that daily operations are paid for and the required monthly replacement reserve is made with available funds. Anticipated Completion Date: September 2025.

View Audit 394688

Finding 1186892 (2025-001)

Material Weakness 2025

Rockport Housing Authority

MA

HUD Housing Programs Eligibility Material Weakness

2025-001 - ELIGIBILITY Auditee’s Response and Planned Corrective Action Rockport Housing Authority (RHA) contracted with Newburyport Housing Authority (NHA) to manage the Section 8 program. They will be calculating income, assets and/or medical expenses based on HUD regulation. NHA is staffed with a...

2025-001 - ELIGIBILITY Auditee’s Response and Planned Corrective Action Rockport Housing Authority (RHA) contracted with Newburyport Housing Authority (NHA) to manage the Section 8 program. They will be calculating income, assets and/or medical expenses based on HUD regulation. NHA is staffed with an experienced Section 8 Coordinator. In addition, NHA uses Rent O Meter to provide Rent Reasonableness Reporting that will be entered into PHA Web as a method of recording. Planned Implementation Date of Corrective Action: June 30, 2026 Person Responsible for Corrective Action: Marie Mathas, Executive Director

View Audit 394668

Finding 1186890 (2025-002)

Material Weakness 2025

Bradley Angle

OR

HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

U.S. Department of Housing and Urban Development 2025-002 AL# 14.267 – Continuum of Care Program Recommendation: We recommend that the Organization continue with the internal controls established later in the year and ensure that Rent Reasonableness testing is documented including the file review. A...

U.S. Department of Housing and Urban Development 2025-002 AL# 14.267 – Continuum of Care Program Recommendation: We recommend that the Organization continue with the internal controls established later in the year and ensure that Rent Reasonableness testing is documented including the file review. Additionally, as there have been recent revisions to the Uniform Grant Guidance (2 CFR 200) that now require documented internal controls over compliance, we also recommend that a specific policy be established for Rent Reasonableness to give clear directives of how the Organization determines rent reasonableness, how it is documented, and retained, ensuring there is current documentation of the internal controls over compliance. Explanation of disagreement with audit findings: there is no disagreement with the audit findings. Action taken in response to finding: Bradley Angle will continue with our rent reasonableness review and approval process for each of our participants when they are searching for their next home. Action Plan: Codify the review and approval process for documentation of rent reasonableness and share with all staff interacting with participants working to secure an apartment. Name(s) of the contact people responsible for correction action: Margot Martin, CEO & Liliana McDonald, Senior Housing Program Manager & Tiffany Thomas-Guice, Programs and Services Director Plan completion date for corrective action plan: May 15, 2026

View Audit 394661

Finding 1186861 (2025-003)

Material Weakness 2025

Homeless Assistance Leadership Organization, Inc.

WI

Subrecipient Monitoring HUD Housing Programs Period of Performance

Finding #2025-003 - Rent Reasonableness Criteria: HUD requires that recipients ensure that rent is reasonable compared to similar unassisted units and maintain documentation supporting the determination; rent paid with CoC leasing funds·may not exceed Fair Market Rent (FMR); and rent reasonableness ...

Finding #2025-003 - Rent Reasonableness Criteria: HUD requires that recipients ensure that rent is reasonable compared to similar unassisted units and maintain documentation supporting the determination; rent paid with CoC leasing funds·may not exceed Fair Market Rent (FMR); and rent reasonableness determinations must be completed before providing assistance. Condition: During testing of rent reasonableness controls and documentation, the following exceptions were identified: • 4 of 4 rent reasonableness determinations lacked evidence of an independent review and approval. • There were 8 instances (2 units x 4 months) where rents exceeded HUD FMR limits. • 3 of 20 rent reasonableness determinations were not completed prior to the lease start date. Questioned Costs: $392. Cause: The Organization did not have sufficiently defined or consistently followed procedures for documenting independent review of rent reasonableness determinations, verifying rents against applicable FMR limits before authorizing payments, and ensuring determinations were complete prior to lease start dates. Effect: Units are approved and paid at non-compliant rent levels, federal funds are used for rents above allowable limits, and documentation does not meet HUD standards, potentially leading to questioned costs, required repayment, and findings in future monitoring or audits. Recommendation: We recommend that management establish a mandatory review and approval step for all rent reasonableness forms, require staff to verify current FMR limits before approving leasing amounts, and require rent reasonableness completion before any lease start date or payment authorization. Response: HALO's management concurs with this finding. HALO management will implement procedures to ensure compliance with rent reasonableness and FMR limits and train staff on those procedures. HALO will replace the current Rent Reasonableness form with the one on the HUD Exchange. Contact Person: Yvonne MacDonald Hames Anticipated Completion: June 30, 2026

View Audit 394609

Finding 1186860 (2025-002)

Material Weakness 2025

Homeless Assistance Leadership Organization, Inc.

WI

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

Finding #2025-002 - Wage Allocations Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been...

Finding #2025-002 - Wage Allocations Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been charged to the grant based on the number of hours worked. Questioned Costs: $1,540. Cause: Payroll software coded manager time as admin time instead of the specific grant funding code. Effect: Wages could be charged to the wrong federal awards and not detected and corrected. Recommendation: We recommend that management review payroll software inputs and outputs for accuracy prior to completing grant claims. Response: HALO's management concurs with this finding. HALO's processes will include a review of payroll software inputs and outputs to ensure hours and wages are accurately allocated. Contact Person: Yvonne MacDonald Hames Anticipated Completion: June 30, 2026

View Audit 394609

Finding 1186859 (2025-003)

Material Weakness 2025

Argus Manor Association

WA

HUD Housing Programs

S3800-010: Finding Reference Number 2025-003 S3800-030: Statement of Condition: The June 30, 2024 year-end audit reporting package required to be submitted to the federal government through United States Department of Housing and Urban Development Real Estate Assessment Center (US HUD REAC) was not ...

S3800-010: Finding Reference Number 2025-003 S3800-030: Statement of Condition: The June 30, 2024 year-end audit reporting package required to be submitted to the federal government through United States Department of Housing and Urban Development Real Estate Assessment Center (US HUD REAC) was not submitted before the submission deadline. S3800-080: Auditor Recommendation: It is our opinion that management acted in good faith and that the submission was late due to circumstances beyond their control that could not be corrected before the submission was due. S3800-045: Actions Taken or to be Taken: Management acknowledges that the annual submission due to REAC was late, but acted in good faith to correct errors in the template before proceeding, and contact HUD as instructed based upon on the HUD REAC website instructions. Management does not believe this noncompliance will reoccur.

View Audit 394602

Finding 1186857 (2025-002)

Material Weakness 2025

Argus Manor Association

WA

HUD Housing Programs

FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (Continued) S3800-010: Finding Reference Number 2025-002 S3800-030: Statement of Condition: Our audit procedures revealed that the security deposit cash account was underfunded for eight (8) out of the twelve (12) months tested. Specifically, the require...

FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (Continued) S3800-010: Finding Reference Number 2025-002 S3800-030: Statement of Condition: Our audit procedures revealed that the security deposit cash account was underfunded for eight (8) out of the twelve (12) months tested. Specifically, the required balance for security deposits was not fully met in these months, resulting in a deficiency in the account. Although the funding deficit amounts were not always significant, it is important that the security deposit cash account be fully funded at all times. S3800-080: Auditor Recommendation: We recommend that property management implement a more robust process for monitoring and reconciling the security deposit cash account on a monthly basis. This process should ensure that the account balance is consistently maintained at the required level. Furthermore, management should conduct periodic reviews of the security deposit balances to identify and address any discrepancies promptly. Training for staff involved in managing security deposits should be considered to ensure compliance with HUD regulations and internal policies S3800-045: Actions Taken or to be Taken: It is management’s policy to fully fund the security deposit account so the balance in cash meets or exceeds the total liability of deposits collected from tenants. Management discussed the importance of reviewing funding monthly with the Project Accountant, and new procedures have been implemented to include a monthly process to compare the security deposit liability to the bank account and fund any shortages to ensure the security deposit bank account is consistently maintained at the required level. The account was fully funded and monitored starting in April of 2025.

View Audit 394602

Finding 1186855 (2025-001)

Material Weakness 2025

Argus Manor Association

WA

Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring

FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT S3800-010: Finding Reference Number 2025-001 S3800-030: Statement of Condition: Management designed Control Activities to ensure compliance with the Eligibility requirement with respect to tenant eligibility. Those Control Activities include verification...

FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT S3800-010: Finding Reference Number 2025-001 S3800-030: Statement of Condition: Management designed Control Activities to ensure compliance with the Eligibility requirement with respect to tenant eligibility. Those Control Activities include verification and review of tenant files by an independent contractor prior to finalization of tenant income certifications and new tenant move-in files. However, during our testing, we noted four (4) move-in files out of four (4) move-in files tested where tenants were approved for move-in prior to review and approval by the independent contractor, circumventing the control. In addition, there was no evidence of approvals of tenant income certifications in the tenant files prior to billing of rental assistance for eleven (11) out of twelve (12) tenant files tested. S3800-080: Auditor Recommendation: We recommend that the client immediately implement corrective actions to ensure compliance with internal control procedures. Specifically: 1. The compliance specialist should be required to wait for proper approval of tenant eligibility files before processing them. 2. Review and reinforce the approval process through additional training for staff to ensure they understand the critical importance of obtaining necessary approvals before proceeding. 3. Implement stronger oversight and monitoring mechanisms to ensure that files are not processed before approval. S3800-045: Actions Taken or to be Taken: Management has reviewed the policies and procedures with the property manager, who also serves as the compliance specialist. The property manager was instructed that no tenants are to be granted occupancy and no billing of rental assistance based on certifications should be billed until the file has been approved by the independent contractor conducting the compliance review.

View Audit 394602

Finding 1186696 (2025-102)

Material Weakness 2025

Maricopa County

AZ

Special Tests & Provisions Eligibility HUD Housing Programs

Assistance Listings number and program name: 14.195 Section 8 Project-Based Cluster (Project-Based Rental Assistance (PBRA)) Responsible Entity: Housing Authority of Maricopa County Contact Person(s): Gerald Minott, Executive Director, Housing Authority of Maricopa County. Anticipated completion dat...

Assistance Listings number and program name: 14.195 Section 8 Project-Based Cluster (Project-Based Rental Assistance (PBRA)) Responsible Entity: Housing Authority of Maricopa County Contact Person(s): Gerald Minott, Executive Director, Housing Authority of Maricopa County. Anticipated completion date: April 12, 2026 Concur: The Housing Authority of Maricopa County (HAMC) has set up automatic build in compliance alert in Yardi Voyager that will adopt HUD software requirement tools while also creating a compliance calendar for the fiscal year which should further assist in the prevention of late inspections and recertifications. Going forward the HAMC Compliance Department will be performing biannual internal monitoring tests of up to (25%) of files per site/property/program. As part of HAMC’s push to implement internal control best practices, HAMC will update its internal control policies on electronic income verification deadlines, inspection frequency, required documentation, correction of income verification steps, and file retention rules to provide better clarity. HAMC will also work with the HAMC HR Department staff to implement a zero-tolerance policy for incomplete files which will be reviewed on a yearly basis.

View Audit 394404

Finding 1186661 (2025-001)

Material Weakness 2025

Conway Apartments, Inc.

AR

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Name: Conway Apartments, Inc. Contact: Jeffrey Woods, Director of Accounting Contact Phone Number: 479-967-5570 Audit Period Ending: June 30, 2025 Anticipated Completion Date: March 18, 2026 Finding 2025-001: The Project did not remit residual receipts in excess of $250 per unit to HUD upon renewal ...

Name: Conway Apartments, Inc. Contact: Jeffrey Woods, Director of Accounting Contact Phone Number: 479-967-5570 Audit Period Ending: June 30, 2025 Anticipated Completion Date: March 18, 2026 Finding 2025-001: The Project did not remit residual receipts in excess of $250 per unit to HUD upon renewal of its PRAC on January 1, 2025, as required by HUD guidance. Management had not recorded a liability for the recapture and was not aware of the requirements. Management’s Response and Planning Corrective Actions: Management has contacted Willaim Stokes at HUD and has been advised to use the funds on an upcoming remodel. The money will be spent by June 30, 2026. Moving forward the Residual Account will be monitored to ensure prompt repayment of funds. Management concurs with findings and plans to implement recommendations above.

View Audit 394363

Finding 1186633 (2025-002)

Material Weakness 2025

Mississippi Regional Housing Authority No. V

MS

HUD Housing Programs Subrecipient Monitoring Cash Management

To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended June 30, 2025 financial statements, it was determined that the unaudited financial data schedule that is utilized as the Housing Authority’s underlying financial statements were not prop...

To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended June 30, 2025 financial statements, it was determined that the unaudited financial data schedule that is utilized as the Housing Authority’s underlying financial statements were not properly stated. Significant errors existed regarding grant receivables, the allowance for doubtful accounts - tenants, capital assets, accounts payable, grant revenues and bad debt expense. Also, a desk review was performed by HUD and it was determined that the Housing Authority had not properly documented its calculation of monthly voucher leased amounts and it understated its Housing Assistance Payment expenses in its VMS reporting. The Housing Authority’s Executive Director, Ashiya Hawkins, is responsible for implementing the corrective action plan. Finding 2025-002 - VMS Reporting Deficiencies We concur with the recommendation and we will establish standard operating procedures that ensure that the HAP amounts and number of vouchers stated on the VMS report are both accurate and properly documented. We are working with our software provider to ensure that VMS reporting software is being fully and correctly utilized. We are also planning on additional training for HCV employees to make sure they are qualified to meet VMS reporting and documentation requirements.

View Audit 394328

Finding 1186608 (2025-001)

Material Weakness 2025

1260 Housing Development Corporation

PA

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

It is the goal of the Corporation to maintain compliance with regulatory requirements. Where hardships are encountered, the Corporation remains in ongoing communication with respective regulatory agencies to promote transparency and mitigate risk of loss in funding or default.

View Audit 394308

Finding 1186589 (2025-001)

Material Weakness 2025

Women in Safe Homes, Inc.

AK

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports....

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports. These controls will ensure approval via physical signature or electronic approval via email correspondence of each key report. Periodic monitoring will be performed to ensure compliance with documentation requirements. Proposed Completion Date: June 30, 2026

View Audit 394292

Finding 1186588 (2025-003)

Material Weakness 2025

Housing for Rockdale Elders, Inc.

MA

Eligibility Subrecipient Monitoring HUD Housing Programs

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: Nove...

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The findings from the October 31, 2025 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2025-003 - Eligibility - Material Weakness Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Action Taken: Management agrees with the finding and is in the process of revising internal controls to address this issue.

View Audit 394285

Finding 1186587 (2025-002)

Material Weakness 2025

Housing for Rockdale Elders, Inc.

MA

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: Nove...

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The findings from the October 31, 2025 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2025-002 - Special Tests and Provisions - Significant Deficiency Recommendation: We recommend that the Corporation establish internal controls over its residual receipts compliance requirements to ensure that the Corporation is in compliance with Uniform Guidance and its regulatory agreement. Action Taken: Management agrees with the finding and is in the process of revising internal controls to address this issue. Additionally, on February 9, 2026, this was corrected.

View Audit 394285

Finding 1182810 (2025-002)

Material Weakness 2025

Taylor Brown Hdf CO (east Main Street Apartments

NY

HUD Housing Programs

Finding 2025-002: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Recommendation: We recommend that East Main Street Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planne...

Finding 2025-002: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Recommendation: We recommend that East Main Street Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planned corrective action: East Main Street Apartments has resumed unit inspections and will ensure those inspections are properly documented in the tenant files. Anticipated Completion Date: April 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821.

View Audit 394208

Finding 1182809 (2025-001)

Material Weakness 2025

Taylor Brown Hdf CO (east Main Street Apartments

NY

HUD Housing Programs

Audit period: January 1, 2025 – December 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUD...

Audit period: January 1, 2025 – December 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Recommendation: East Main Street Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: East Main Street Apartments agrees with the finding and will make the required payment. Anticipated Completion Date: April 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821.

View Audit 394208

Finding 1182808 (2025-001)

Material Weakness 2025

Geneva General Housing Development Fund Company, Inc.

NY

HUD Housing Programs

Audit period: January 1, 2025 – December 31, 2025 The finding from the 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Fi...

Audit period: January 1, 2025 – December 31, 2025 The finding from the 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Mortgage Insurance - Rental Housing (Section 207), Federal Assistance Listing Number 14.134 Recommendation: Our auditors recommended that we resume unit inspections and ensure those inspections are properly documented in the tenant files. Action Taken: We are currently in the process of completing and documenting unit inspections. Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821. Anticipated Completion Date: April 2026

View Audit 394206

Finding 1182803 (2025-003)

Material Weakness 2025

Miller Road Housing Development Fund Company, Inc.

NY

HUD Housing Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Finding 2025-003: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditor’s recommended that Rogers Senior Apartments strengthen its overall internal controls surrounding HUD program compliance,...

Finding 2025-003: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditor’s recommended that Rogers Senior Apartments strengthen its overall internal controls surrounding HUD program compliance, including improvements to supervisory oversight, tenant file documentation practices, and monitoring procedures to ensure that required certifications, inspections, and voucher submissions are completed accurately, timely, and in accordance with HUD regulations. Action Taken: Rogers Senior has hired a new apartment manager and regional property manager with significant HUD program experience. The new regional property manager is now providing enhanced oversight, including regular review of tenant files, recertification documentation, and HUD voucher submissions to ensure that all required activities are completed timely, accurately, and in accordance with HUD regulations. Management will continue to monitor compliance and strengthen internal processes to prevent recurrence of these issues. Anticipated Completion Date: April 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821.

View Audit 394204

Finding 1182802 (2025-002)

Material Weakness 2025

Miller Road Housing Development Fund Company, Inc.

NY

HUD Housing Programs

Finding 2025-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Rogers Senior Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory A...

Finding 2025-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Rogers Senior Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Rogers Senior Apartments agrees with the finding and will make the required payment. Anticipated Completion Date: March 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821.

View Audit 394204

Finding 1182799 (2025-002)

Material Weakness 2025

Loretto Apts at O'Brien Road Hdfc, Inc. (o'brien Rd SR Appts 2)

NY

HUD Housing Programs

Finding 2025-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 (Continued) Recommendation: Our auditor’s recommended that we ensure sufficient operating cash flow to make all required reserve for replacement deposits in the future. Views of management an...

Finding 2025-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 (Continued) Recommendation: Our auditor’s recommended that we ensure sufficient operating cash flow to make all required reserve for replacement deposits in the future. Views of management and planned corrective action: Management concurs. The December payment was made on January 9, 2026. Action Taken: The December payment was made on January 9, 2026. Completion Date: January 9, 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821

View Audit 394200

Corrective Action Plans

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