Finding 1155296 (2024-001)

Triangle Elderly Housing Corporation 1363 West Market Street Smithfield, NC 27577 Name of auditee: Triangle Elderly Housing Corporation HUD auditee identification number: FHA/Contract #053-11250 Name of audit firm: O. Douglas Covington, C.P.A., P.A. Period covered by the audit: January 1, 2024 thru December 31, 2024 CAP prepared by: Name: Davita W. Hill Position: Housing Director Telephone: 919-934-6066 1. Finding 2024-001 a. Comments on the Finding and Each Recommendation We are in agreement with the finding. b. Action(s) Taken or planned on the finding: A corrected fund authorization has been sent to HUD and Berkadia, our Lender, to update the current monthly reserve for replacement deposit amount for the project. Moving forward, we will continue to submit all fund authorizations to the HUD Account Executive, while being sure to include our Berkadia Account Representative in each correspondence and follow-up with each representative to assure the authorization has been approved and fully executed by all parties. Additionally, I will relay an executed copy of the Fund Authorization to our Finance Specialist, Renee Davis, to ensure the increased amount is correct and reflected in the Projects Mortgage Statement immediately following the effective date of the increase.