Corrective Action Plans

Finding 28791 (2022-002)

Material Weakness 2022

NC

HUD Housing Programs Reporting

In Finding 2022-002, it was reported that the Uniform Data System report submitted to DHHS for the year ended December 31, 2021 contained incorrect data for patient revenue. The charges and payments were not correctly reported on Table 9D of the UDS report. The charges were understated by approxima...

In Finding 2022-002, it was reported that the Uniform Data System report submitted to DHHS for the year ended December 31, 2021 contained incorrect data for patient revenue. The charges and payments were not correctly reported on Table 9D of the UDS report. The charges were understated by approximately $2.4 million. Management recognizes the importance of complying with federal reporting guidelines. In response to Finding 2022-002, efforts will be made to ensure that the revenue and expenses recorded is reconciled to the revenue and expenses on the UDS report. This will be implemented by the Chief Executive Officer by October 31, 2022.

View Audit 28879

Finding 28773 (2022-001)

Material Weakness 2022

Creative Housing Iv, Inc.

AR

HUD Housing Programs Special Tests & Provisions Cash Management

Corrective Action Plan Responsible Party: Barbara Staggs, Chief Financial Officer Finding 2022-001 The required annual deposit to the residual receipts account was not made. This deposit is required to be made within 60 days following year-end. Comments on the Finding and Recommendation Management i...

Corrective Action Plan Responsible Party: Barbara Staggs, Chief Financial Officer Finding 2022-001 The required annual deposit to the residual receipts account was not made. This deposit is required to be made within 60 days following year-end. Comments on the Finding and Recommendation Management is in agreement with this finding and the related recommendation. Action(s) Taken or Planned on the Finding Surplus cash is calculated on a monthly basis. All residual receipts are required to be deposited in a separate federally insured account within 60 days of the fiscal year-end. Written instructions are included on the surplus cash calculation spreadsheet to ensure compliance.

View Audit 28847

Finding 28715 (2022-003)

Significant Deficiency 2022

Terra Quest, Inc.

OH

HUD Housing Programs Allowable Costs / Cost Principles

3. Current Findings on the Schedule of Finding, Questioned Cost and Recommendation c. Finding 2022-002 (14.181 ? Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance) Allocation of Administration Expenses Condition: Administration expenses, relating to the Lead Mainten...

3. Current Findings on the Schedule of Finding, Questioned Cost and Recommendation c. Finding 2022-002 (14.181 ? Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance) Allocation of Administration Expenses Condition: Administration expenses, relating to the Lead Maintenance Technician; Inspector and Director of Senior Housing were allocated to the Project, as frontline expenses, recorded to Office Salaries; Payroll Taxes; 401K Contributions and Group Insurance, during the 2022 calendar year. (1) Comments on the Finding and Each Recommendation. Management concurs with the finding and the auditor?s recommendation that Terra Quest, Inc., record Administration expense as part of the management fee for the Project. (2) Actions Taken on the Finding. Allocations have stopped.

View Audit 29534

Finding 28714 (2022-002)

Significant Deficiency 2022

Terra Quest, Inc.

OH

HUD Housing Programs

2. Current Findings on the Schedule of Finding, Questioned Cost and Recommendation b. Finding 2022-002 (14.181 ? Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance) Payroll Expense Condition: Payroll expense for the Resident Manager and Maintenance, was based on an es...

2. Current Findings on the Schedule of Finding, Questioned Cost and Recommendation b. Finding 2022-002 (14.181 ? Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance) Payroll Expense Condition: Payroll expense for the Resident Manager and Maintenance, was based on an estimated percentage. There was no timesheets or time study prepared, during the 2022 calendar year. (1) Comments on the Finding and Each Recommendation. Management concurs with the finding and the auditor?s recommendation that Terra Quest, Inc., prepare timesheets or perform a time study, in order to properly report payroll expense for the Resident Manager and the Maintenance staff. (2) Actions Taken on the Finding. Moving to new system.

View Audit 29534

Finding 28713 (2022-001)

Significant Deficiency 2022

Terra Quest, Inc.

OH

HUD Housing Programs Equipment & Real Property Management

1. Current Findings on the Schedule of Finding, Questioned Cost and Recommendation a. Finding 2022-001 (14.181 ? Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance) Tenant Files Condition: Move-ins: 1. In one (1) instance out of three (3) tenant files tested, the ins...

1. Current Findings on the Schedule of Finding, Questioned Cost and Recommendation a. Finding 2022-001 (14.181 ? Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance) Tenant Files Condition: Move-ins: 1. In one (1) instance out of three (3) tenant files tested, the inspection form was not dated. 2. In two (2) instances out of three (3) tenant files tested, ?Verification of handicapped/disabled status? form was not maintained in the tenant?s file. 3. In one (1) instance out of three (3) tenant files tested, the Security Deposit Agreement was not maintained in the tenant?s file. Recertification: 1. In one (1) instance out of six (6) tenant files tested, the Quality Assurance Information form was not initialed by the tenant, indicating acceptance. 2. In one (1) instance out of six (6) tenant files tested, the Non-Smoking lease addendum was not signed by the tenant. 3. In six (6) instances out of six (6) tenant files tested, the Notification of rent increase resulting from recertification processing ? Section 811 PRAC?s form, was not maintained in the tenant file. 4. In two (2) instances out of six (6) tenant files tested, the tenant?s income was based on the net benefits as opposed to the gross benefits. 5. In one (1) instance out of six (6) tenant files tested, the HUD Form 50059 was not signed by the tenant. Move-outs: 1. The tenant file selected for testing could not be located. (1) Comments on the Finding and Each Recommendation. Management concurs with the finding and the auditor?s recommendation that Terra Quest, Inc. process applicants and tenants, including recertification of tenants in accordance with guidelines established by the Department of Housing and Urban Development prior to the tenant occupying the unit. (2) Actions Taken on the Finding. New manager hired and upgraded review process. All files corrected.

View Audit 29534

Finding 28620 (2022-001)

Significant Deficiency 2022

Northern Oswego County Health Services, Inc. Dba Connextcare

NY

Subrecipient Monitoring Eligibility HUD Housing Programs

CORRECTIVE ACTION PLAN July 27, 2023 United Stated Department of Health and Human Services Northern Oswego County Health Services, Inc. d/b/a ConnextCare respectfully submits the following corrective action plan for the year ended December 31, 2022. Cohn Reznick LLP 350 Church Street Hartford, CT 06...

CORRECTIVE ACTION PLAN July 27, 2023 United Stated Department of Health and Human Services Northern Oswego County Health Services, Inc. d/b/a ConnextCare respectfully submits the following corrective action plan for the year ended December 31, 2022. Cohn Reznick LLP 350 Church Street Hartford, CT 06103 Audit Period: December 31, 2022 The findings from the December 31, 2022, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS SIGNIFICANT DEFICIENCY 2022-001 - Sliding Fee Scale Discount Recommendation The Center should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated based on family size and income. Action Taken ConnextCare as established the following system of internal controls, effective immediately: 1) Monthly internal audits of new patient records being entered into our practice management system. This review will ensure the proper character (U) is entered into the Sliding Fee Scale tab. 2) Review of accounts when new Income Verification forms are received from the patients to ensure that reported income aligns with the practice management system. In addition, perform monthly audits of 25 active Sliding Fee Scale patients for proper Slide percentage and calculation. 3) Additional training provided to all Patient Access Representatives, Medical and Dental Billing Staff on proper calculation of a self-pay eligible sliding fee scale patient. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please call: Tracy Wimmer, CFO at (315) 298-6569, ext. 2020. Tracy Wimmer Sr. VP/Chief Financial Officer

View Audit 27998

Finding 28465 (2022-002)

Significant Deficiency 2022

Woodview of Cincinnati, Inc.

OH

Questioned Costs HUD Housing Programs Cash Management

Recommendation: The Organization should perform its own calculation of surplus cash and remit required deposits to the residual receipts account within 60 days after year-end as required by HUD. Views of Responsible Officials and Planned Corrective Actions: Corrected. The Organization remitted the r...

Recommendation: The Organization should perform its own calculation of surplus cash and remit required deposits to the residual receipts account within 60 days after year-end as required by HUD. Views of Responsible Officials and Planned Corrective Actions: Corrected. The Organization remitted the required amount of surplus cash to the residual receipts account. In the future, management will try to remit deposits in a timely manner, within 60 days after yearend.

View Audit 37308 Questioned Costs: $1

Finding 28464 (2022-001)

Significant Deficiency 2022

Woodview of Cincinnati, Inc.

OH

Questioned Costs HUD Housing Programs

Recommendation: Management personnel should monitor cash flows on a monthly basis in line with budget and monthly required deposits in order to appropriately meet the current and future cash flow needs of the property. Views of Responsible Officials and Planned Corrective Actions: Management acknowl...

Recommendation: Management personnel should monitor cash flows on a monthly basis in line with budget and monthly required deposits in order to appropriately meet the current and future cash flow needs of the property. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the lack of cash flow management. The onsite and regional manager plan to work together to perform better monthly review of expenses compared to budget and work to fund the delinquent and current deposits as soon as cash is available

View Audit 37308 Questioned Costs: $1

Finding 28407 (2022-003)

Material Weakness 2022

St. Francis School District

WI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring

2022-003 Federal Assistance Listing Number ? All State ID Number - All Recommendation: We recommend that the District continue to evaluate the financial, compliance, and reporting requirements specific to federal and state awards administered by the District. The District should incorporate identifi...

2022-003 Federal Assistance Listing Number ? All State ID Number - All Recommendation: We recommend that the District continue to evaluate the financial, compliance, and reporting requirements specific to federal and state awards administered by the District. The District should incorporate identified opportunities to improve segregation of duties in written policies and procedures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District recently realigned responsibilities within the administrative team which included the appointment of a Curriculum Director. The new alignment now allows for the Curriculum Director to provide proper oversight of Title funds, and the Pupil Services Director will provide oversight of IDEA funding. The Director of Finance will continue to collaborate with the respective directors as a fiscal contact for federal awards, but grant coordination will be delegated to the respective department heads. Name of the contact person responsible for corrective action: Deborah Kerr, District Superintendent Planned completion date for corrective action plan: On-going

View Audit 36188

Finding 28322 (2022-001)

None 2022

Dr. Lucy Lang-Chappell Housing Complex

IL

HUD Housing Programs Reporting

Dr. Lucy Lang-Chappell Housing Complex respectfully submits the following Corrective Action Plan for the year ended June 30, 2022. Name and address of the independent public accounting firm who conducted the related audit: Comer, Nowling And Associates, P.C. 10475 Crosspoint Boulevard, Suite 20...

Dr. Lucy Lang-Chappell Housing Complex respectfully submits the following Corrective Action Plan for the year ended June 30, 2022. Name and address of the independent public accounting firm who conducted the related audit: Comer, Nowling And Associates, P.C. 10475 Crosspoint Boulevard, Suite 200 Indianapolis, Indiana 46256 Finding 2022-001 Corrective Action Planned ? Management will provide the auditors with all audit documentation in a matter timely enough to complete the audit fieldwork and file the audit in the REAC system within 90 days of year-end. Contact Person(s) Responsible ? Jim Beemster, Controller Anticipated Completion Date ? January 17, 2023 Auditee Disagreements ? Management maintains the request for documentation was not received with enough time to turn around the documents. This corrective action plan was prepared by Evergreen Real Estate Services, the management company, on behalf of Dr. Lucy Lang-Chappell Housing Complex. __________________________ _____________________ Jim Beemster, Controller Date Evergreen Real Estate Services 566 West Lake Street, Suite 400 Chicago, IL 60661 312-234-9400

View Audit 27655

Finding 28253 (2022-003)

Material Weakness 2022

San Antonio Community Hospital

CA

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles HUD Housing Programs

Finding 2022-003 Internal Control Deficiency and Non-compliance over Reporting Federal Grantor: United States Department of Health and Human Services, Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.498 Award Period of Performance: January 1, 2020 ? December 31, 2...

Finding 2022-003 Internal Control Deficiency and Non-compliance over Reporting Federal Grantor: United States Department of Health and Human Services, Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.498 Award Period of Performance: January 1, 2020 ? December 31, 2022 Summary of Finding: The Hospital?s reporting submissions did not follow the published HRSA guidance related to the reporting of lost revenue. Internal controls over the method used to report lost revenues in the HRSA and ARP reports were not precise enough to identify the submissions were not compliant with HRSA reporting guidance. Corrective Action Plan: Management will ensure internal controls are in place to identify the submissions are compliant with HRSA reporting guidelines. Responsible Party: Wah-chung Hsu, Chief Financial Officer Anticipated Completion Date: December 31, 2023

View Audit 31392

Finding 28100 (2022-002)

Significant Deficiency 2022

Los Angeles Jewish Home for the Aging

CA

Reporting HUD Housing Programs Significant Deficiency

FINDING 2022-002 ? Significant Deficiency in Internal Controls over Compliance Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Review controls should be in place by someone other than the ...

FINDING 2022-002 ? Significant Deficiency in Internal Controls over Compliance Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Review controls should be in place by someone other than the preparer of the report to ensure information is accurate prior to submission of the report. Corrective Action Plan: We have strengthened controls over review procedures over grant reporting by having the corporate controller review all PRF reports for accuracy and agree amounts to LAJH?s financial statements prior to filing. We have also improved our system generated financial reports to assist with the verification of the report preparer?s work. Contact Person Responsible for Corrective Action Plan: Mark C de Baca, Corporate Controller Anticipated Completion of Corrective Action Plan: June 30, 2023

View Audit 28712

Finding 26298 (2022-002)

Significant Deficiency 2022

Timber Hills Housing of Alcorn County, INC

MS

Eligibility HUD Housing Programs Significant Deficiency

CORRECTIVE ACTION PLAN SEPTEMBER 30, 2022 U. S. Department of Housing and Urban Development Timber Hills Housing of Alcorn County, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: Harper, Rains, Knight & Company, P.A. 1...

CORRECTIVE ACTION PLAN SEPTEMBER 30, 2022 U. S. Department of Housing and Urban Development Timber Hills Housing of Alcorn County, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended September 30, 2022 Audit Finding Reference: 2022-002 Planned Corrective Action: Management will ensure that the Project has all required forms for each tenant. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Scott Russell at 601-856-2362. Sincerely, Timber Hills Housing of Alcorn County, Inc.

View Audit 18247

Finding 26297 (2022-001)

Material Weakness 2022

Timber Hills Housing of Alcorn County, INC

MS

HUD Housing Programs Material Weakness

CORRECTIVE ACTION PLAN SEPTEMBER 30, 2022 U. S. Department of Housing and Urban Development Timber Hills Housing of Alcorn County, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: Harper, Rains, Knight & Company, P.A. 1...

CORRECTIVE ACTION PLAN SEPTEMBER 30, 2022 U. S. Department of Housing and Urban Development Timber Hills Housing of Alcorn County, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended September 30, 2022 Audit Finding Reference: 2022-001 Planned Corrective Action: Management will complete an updated housing assistance payment voucher and ensure that receivables are reconciled monthly to ensure that this is not duplicated in the future.

View Audit 18247

Finding 26292 (2022-002)

Significant Deficiency 2022

Housing Authority of the City of Muncie

IN

Questioned Costs HUD Housing Programs Significant Deficiency

Finding 2022-002 Significant Deficiency in Internal Control over Financial Reporting; Significant Deficiency in Internal Control over Compliance Corrective Action Plan: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly...

Finding 2022-002 Significant Deficiency in Internal Control over Financial Reporting; Significant Deficiency in Internal Control over Compliance Corrective Action Plan: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly) to ensure that staff members are following established procedures. Name of Responsible Person: Shannel Lampkins, HCV Manager Projected Completion Date: March 31, 2023

View Audit 23243 Questioned Costs: $1

Finding 26291 (2022-001)

Significant Deficiency 2022

Housing Authority of the City of Muncie

IN

HUD Housing Programs Reporting Significant Deficiency

Finding 2022-001 Significant Deficiency in Internal Control over Financial Reporting; Significant Deficiency in Internal Control over Compliance Corrective Action Plan: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly...

Finding 2022-001 Significant Deficiency in Internal Control over Financial Reporting; Significant Deficiency in Internal Control over Compliance Corrective Action Plan: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly) to ensure that staff members are following established procedures. Name of Responsible Person: Shannel Lampkins, HCV Manager Projected Completion Date: March 31, 2023

View Audit 23243

Finding 26265 (2022-003)

Material Weakness 2022

Valders Area School District

WI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring

Management is cognizant of the District?s internal control structure and continues to evaluate cost effective opportunities to further improve segregation of duties. The District has strengthened the internal control structure in recent years by revising the roles and responsibilities of multiple po...

Management is cognizant of the District?s internal control structure and continues to evaluate cost effective opportunities to further improve segregation of duties. The District has strengthened the internal control structure in recent years by revising the roles and responsibilities of multiple positions within the accounting department. The District continues to identify and implement effective mitigating controls when possible. Current District procedures in both the accounts payable and payroll functions include one position that is primarily responsible for transaction processing and require that a second individual review and approve transactions. As a result of these procedures, the Finance Manager has less responsibility with daily functions which enables the position to provide additional secondary review and oversight both in the financial areas of accounts payable, accounts receivable, and in the payroll/HR areas. Name of responsible official: Michelle Lillibridge, Business Services Director Expected Completion Date: Ongoing, no formal expected completion date

View Audit 18106

Finding 26243 (2022-001)

Significant Deficiency 2022

Cain Center Apartments, Inc. Dba Brown-MacKinnon Apartments

KY

HUD Housing Programs Matching / Level of Effort / Earmarking

Statement of condition #2022-001: Comments on Finding and Recommendation: During the year ended March 31, 2022, 2 of the 25 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. The Agent should ensure that all cash disbursements a...

Statement of condition #2022-001: Comments on Finding and Recommendation: During the year ended March 31, 2022, 2 of the 25 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Action(s) Taken or Planned on the Finding: The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to the vendors, and all documentation will be retained.

View Audit 18029

Finding 26202 (2022-001)

None 2022

Asi - Anoka County, Inc.

MN

Questioned Costs HUD Housing Programs

ASI - ANOKA COUNTY, INC. HUD PROJECT NO. 092-HD029-WPD CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Anoka County, Inc. respectfully submits the following corrective action plan for the year ended June 3...

ASI - ANOKA COUNTY, INC. HUD PROJECT NO. 092-HD029-WPD CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Anoka County, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit period: June 30, 2022 The finding from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT NONE FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project made two replacement reserve withdrawals for the same invoice. Recommendation: The Project should repay the amount improperly withdrawn from the replacement reserve account. Action Taken: The Project agrees with the finding. Management will deposit $1,375 into the replacement reserve account. If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at 651-846-1057.

View Audit 27803 Questioned Costs: $1

Finding 26180 (2022-005)

Material Weakness 2022

Palestine Gardens, INC

MO

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Finding 2022-005 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) ...

Finding 2022-005 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) Compliance Requirements E - Eligibility Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will follow procedures to ensure applicant and tenant eligibility and recertification is being maintained properly and management will review the accuracy / completeness of the documentation being processed in the tenant files on a quarterly basis. Anticipated Completion Date June 30, 2023

View Audit 23691

Finding 26179 (2022-004)

Material Weakness 2022

Palestine Gardens, INC

MO

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Finding 2022-004 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) ...

Finding 2022-004 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) Compliance Requirements E - Eligibility Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will follow procedures to ensure tenant eligibility and establish and maintain security deposits for move outs and management will review the accuracy / completeness of the documentation being processed in the tenant files on a quarterly basis. Anticipated Completion Date June 30, 2023

View Audit 23691

Finding 26178 (2022-003)

Material Weakness 2022

Palestine Gardens, INC

MO

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment

Finding 2022-003 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) ...

Finding 2022-003 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will obtain the necessary elevator certification. Anticipated Completion Date June 30, 2023

View Audit 23691

Finding 26177 (2022-002)

Significant Deficiency 2022

Palestine Gardens, INC

MO

Questioned Costs HUD Housing Programs Special Tests & Provisions

Finding 2022-002 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 PALESTINE GARDENS, INC. 2627 EAST 33RD STREET KANSAS CITY, MO 64128 48 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or ...

Finding 2022-002 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 PALESTINE GARDENS, INC. 2627 EAST 33RD STREET KANSAS CITY, MO 64128 48 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will deposit the shortfall of $912 into the reserve for replacement account. Anticipated Completion Date June 30, 2023

View Audit 23691 Questioned Costs: $1

Finding 26176 (2022-001)

Material Weakness 2022

Palestine Gardens, INC

MO

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2022 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 ? Audit Findings Follow-up requires the auditee t...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2022 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 ? Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor?s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended December 31, 2022. Finding 2022-001 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly in the work order system and management will review the accuracy of the documentation being processed in the work order system on a quarterly basis. Anticipated Completion Date June 30, 2023

View Audit 23691

Finding 26175 (2022-004)

Material Weakness 2022

Palestine Gardens North, INC

MO

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs

Finding 2022-004 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N ? Special Tests and Provisions Find...

Finding 2022-004 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will obtain the necessary elevator certification. Anticipated Completion Date June 30, 2023

View Audit 23630

Corrective Action Plans

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