Finding 2022-002: Internal Control over Compliance with Period of Performance and Noncompliance of Period of Performance and Reporting Condition: The period of performance compliance requirement related to total expenditures and close of financial products was not met. As of September 30, 2022, the Agency expended approximately 50% of the CDFI RRP Assistance of which approximately 36% was in closed financial products. Additionally, the Agency did not provide a narrative explanation of the failure. Management Response: We acknowledge this finding. Corrective Action Plan: Management had prepared the budgeted expenditures below for the CDFI-RRP Award. Shared Equity Resources $ 1,300,000 Housing Resiliency Fund $ 100,000 Income Assistance $ 125,000 Mortgage Assistance $ 27,325 Admin Fee $ 273,940 Total Grant $ 1,826,265 Management has hired staff in Period 1 and provided marketing and training to fully execute the above $1.3MM expenditures related to the Shared Equity Resources portion of the award. THF was in the process of expending the final resources available from a corporate grant to support the Housing Resiliency Fund in Period 1 before utilizing the CDFI-RRP Award resources for this purpose. Management has been tracking the progress on the above budgeted uses and currently has utilized 96% of the grant resources as of June 30, 2023. Management will utilize 100% of the resources by the end of the second period of performance and be in compliance of utilizing 100% of the award by the end of Period of Performance 2. Tracking of utilization to date is below: [see report for table] This corrective action plan will be 100% completed by 09/30/23.