Finding 2025-002 Finding type: Significant deficiency. Condition: Downstreet purchased a new property for approximately $5 million and did not record the asset in its general ledger. Additionally, receipts of grant funding were recorded as a reduction in construction-in-progress of approximately $1.38 million rather than an asset and related grant revenue. As a result, property, plant and equipment assets and grant revenue were understated. Management concurrence: Management concurs with this finding. Corrective action plan: Downstreet Housing & Community Development will implement a formal reconciliation and review process for property acquisitions and development activity. For each acquisition or significant development project, Finance will obtain and review the closing documents, development records, funding agreements, grant activity, and construction-in-progress detail to identify all transactions that must be recorded in the general ledger. Property acquisition costs, subsequent improvements, construction-in-progress, related liabilities, and grant revenue will be reconciled to the development project records at key project stages and as part of the year-end closing process. A supervisory finance official will review the reconciliation and supporting documentation to verify that property costs and related funding have been recorded completely, accurately, and in the appropriate accounts and accounting period. Projected completion date: December 31, 2026 Responsible official: Schuyler Anderson, CFO/COO