The Senior Housing Corporation of East Haddam, Inc.

Finding No. 2024-001 – Reserve Account Funding – Other Matter Criteria: The Project’s reserve account must be fully funded and maintained in a separate bank account. Condition: The Project maintained a separate bank account for the reserves, however the account was not fully funded. Effect: The reserve bank account is underfunded by approximately $91,000. Cause: Not all monthly budgeted transfers were made to ensure the account is fully funded. Recommendation: The Project should implement a process to ensure the reserve bank account is fully funded. Reporting Views of Responsible Officials: Management agrees with the finding, see the Corrective Action Plan.

Finding Reference Number: 2024-001 Reserve Account Funding Description of Finding: The Project maintained a separate bank account for the reserves, however the account was not fully funded. Statement of Concurrence or Nonconcurrence: The Project agrees with the audit finding. Corrective Action: Our office will initiate direct communication with both Rural Development (RD) and the US Department of Housing and Urban Development (HUD) regarding the best way to handle the funding for this project.

2022-002

Finding No. 2024-002 – Single Audit Report Filing – Other Matter Criteria: The Project must file a federal single audit the earlier of thirty calendar days after receiving the auditors’ report or nine months after the end of the audit period. Condition: The Project did not file its federal single audit for the year ended October 31, 2023 by the due date of July 31, 2024. Effect: The Project is not in compliance with the reporting requirement. Cause: Significant delays in the audit process resulting in the late filing. Recommendation: The Project should implement a process to ensure the single audit is filed timely. Reporting Views of Responsible Officials: Management agrees with the finding, see the Corrective Action Plan.

Finding Reference Number: 2024-002 Single Audit Report Filing Description of Finding: The Project did not file its federal single audit for the year ended October 31, 2023 by the due date of July 31, 2024. Statement of Concurrence or Nonconcurrence: The Project agrees with the audit finding. Corrective Action: The signature pages were signed after the initial deadline but have since been provided to Hoyt, Filippetti & Malaghan, LLC. We have transitioned to a new CPA firm and have been working closely with the board to ensure that all required signatures are obtained in a timely manner for the 2023-2024 reporting fiscal year.

OTHER MATTERS 2022-002 RESERVE ACCOUNT FUNDING Criteria: The Project’s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management’s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.

2022-002 RESERVE ACCOUNT FUNDING Grantor: U.S. Department of Agriculture Award Name: Rural Rental Housing Loans Award Year: 2022 Award Numbers: Various CFDA Number: 10.415 Criteria: The Project’s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management’s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.

2022-002

2022-002 RESERVE ACCOUNT FUNDING Criteria: The Project?s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management?s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.

THE SENIOR HOUSING CORPARTION OF EAST HADDAM, INC. CORRECTIVE ACTION PLAN March 4, 2023 Federal Audit Clearinghouse 1201 East 10th Street Jefferson, Indiana 47132 Acadia Housing, Inc. d/b/a Riverside Village (the Project) respectfully submits the following Corrective Action Plan for the year ended October 31, 2022. Hoyt, Filippetti & Malaghan, LLC 1041 Poquonnock Road Groton, Connecticut 06340 Audit Period: Year ended October 31, 2022 The findings from the October 31, 2022 Schedule of Federal Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2022-001 BOARD MEETINGS Criteria: Board of directors should convene to fulfil their fiduciary duties and provide governance to the Project. Condition: During our audit testing, we noted that the board of directors were not holding board meetings regularly. Cause: Board of directors are not meeting on a regular basis. Effect: Board of directors are not providing oversight of the management company and financial transactions. Questioned Costs: N/A Recommendation: We recommend that the board of directors meet on a regular basis to fulfill their fiduciary duties. Management?s Views and Corrective Action Plan: The board has agreed to a minimum of two board meetings each year and any additional meetings on an as needed basis. 2022-002 RESERVE ACCOUNT FUNDING Grantor: U.S. Department of Agriculture Award Name: Rural Rental Housing Loans Award Year: 2022 Award Numbers: Various CFDA Number: 10.415 Criteria: The Project?s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management?s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account If you have any questions regarding this plan, please contact Matthew Scibek at 860-398-5425, or matt@westfordmgt.com.

U.S. Department of Agriculture, Rural Development FINDING NO. 2020-001: Rural Rental Housing Loans, CFDA 10.415 CRITERIA: In accordance with RD regulations replacement reserve accounts are funded through required monthly transfers from operating cash funds and held for replacement of property and other uses with the approval of RD. CONDITION: During the year ended October 31, 2020 The Senior Housing Corporation of East Haddam, Inc. did not make the required monthly deposits to its replacement reserve account. At October 31, 2020 the replacement reserve account was underfunded $18,500. CAUSE OF CONDITION: Operating cash funds were not sufficient to make the required transfers to the replacement reserve account. EFFECT OR POTENTIAL EFFECT: The Replacement Reserve account has not been funded as required. RECOMMENDATION: As soon as operating funds are available the underfunding should be transferred to the replacement reserve account. VIEWS OF RESPONSIBLE OFFICIALS: The Senior Housing Corporation agrees with the finding and the auditor's recommendation. The underfunding was transferred to the replacement reserve account subsequent to year end.

The Senior Housing Corporation of East Haddam dba Oak Grove C/O Wildwood Property Management, LLC 162 West Street, Suite D Cromwell, CT 06416 Tel: 860-398-5425 Fax: 860-398-5429 www.wildwoodmgt.com CORRECTIVE ACTION PLAN January 29, 2021 U.S. Department of Agriculture, Rural Development Windsor Service Center 100 Northfield Drive, 4th Floor Windsor, CT 06095-4729 The Senior Housing Corporation of East Haddam, Inc. respectfully submits the following corrective action plan for the year ended October 31, 2020. Name and address of independent public accounting firm: Alan J. Tucker Certified Public Accountant 26 Honey Hill Rd. Norwalk, CT 06851 Audit Period: Year ended October 31, 2020. The findings from the Schedule of Findings and Questioned Costs for the year ended October 31, 2020 are discussed below. The finding is numbered consistently with the numbers assigned in the Schedule. Section A of the Schedule, Summary of Auditor's Results and Section B, Findings - Financial Statements Audit, do not include findings and are not addressed. SECTION C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT: U.S. DEPARTMENT OF AGRICULTURE - RURAL DEVELOPMENT FINDING NO. 2020-001: Rural Rental Housing Loans, CFDA 10.415 Recommendation: As soon as operating funds are available the underfunding should be transferred to the replacement reserve account. Action taken: On November 20, 2020 $4,500 of the past due funding was deposited into the replacement reserve account. On November 25, 2020 the balance of the past due funding was deposited into the replacement reserve account. Johanne L'Italien Controller Wildwood Property Management, LLC 162 West Street, suite D Cromwell, CT 06416 860-398-5425 www.wildwoodmgt.com Hearing Impaired Use 1-800-842-9709 This institution is an equal opportunity provider and employer.

CURRENT YEAR FINDINGS: U.S. Department of Agriculture, Rural Development FINDING NO. 2019-001: Rural Rental Housing Loans, CFDA 10.415 CRITERIA: In accordance with RD regulations replacement reserve accounts are funded through required monthly transfers from operating cash funds and held for replacement of property and other uses with the approval of RD. CONDITION: During the year ended October 31, 2019 The Senior Housing Corporation of East Haddam, Inc. did not make the required monthly deposits to its replacement reserve account. At October 31, 2019 the replacement reserve account was underfunded $14,000. CAUSE OF CONDITION: Operating cash funds were not sufficient to make the required transfers to the replacement reserve account. EFFECT OR POTENTIAL EFFECT: The Replacement Reserve account has not been funded as required. RECOMMENDATION: As soon as operating funds are available the underfunding should be transferred to the replacement reserve account. VIEWS OF RESPONSIBLE OFFICIALS: The Senior Housing Corporation agrees with the finding and the auditor's recommendation. The underfunding was transferred to the replacement reserve account subsequent to year end.

The Senior Housing Corporation of East Haddam dba Oak Grove C/O Wildwood Property Management, LLC 162 West Street, Suite D Cromwell, CT 06416 Tel: 860-398-5425 Fax: 860-398-5429 www.wildwoodmgt.com CORRECTIVE ACTION PLAN January 28, 2020 U.S. Department of Agriculture, Rural Development Windsor Service Center 100 Northfield Drive, 4th Floor Windsor, CT 06095-4729 The Senior Housing Corporation of East Haddam, Inc. respectfully submits the following corrective action plan for the year ended October 31, 2019. Name and address of independent public accounting firm: Alan J. Tucker Certified Public Accountant 26 Honey Hill Rd. Norwalk, CT 06851 Audit Period: Year ended October 31, 2019. The findings from the Schedule of Findings and Questioned Costs for the year ended October 31, 2019 are discussed below. The finding is numbered consistently with the numbers assigned in the Schedule. Section A of the Schedule, Summary of Auditor's Results and Section B, Findings - Financial Statements Audit, do not include findings and are not addressed. SECTION C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT: U.S. DEPARTMENT OF AGRICULTURE - RURAL DEVELOPMENT FINDING NO. 2019-001: Rural Rental Housing Loans, CFDA 10.415 Recommendation: As soon as operating funds are available the underfunding should be transferred to the replacement reserve account. Action taken: On November 18, 2019 $9,000 of the past due funding was deposited into the replacement reserve account. On December 13, 2019 the balance of the past due funding was deposited into the replacement reserve account. Johanne L'Italien Controller Wildwood Property Management, LLC 162 West Street, suite D Cromwell, CT 06416 860-398-5425 www.wildwoodmgt.com Hearing Impaired Use 1-800-842-9709 This institution is an equal opportunity provider and employer.

2018-001

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2017-001

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