THE ST. JOHN'S PLACE FAMILY CENTER HOUSING DEVELOPMENT FUND CORP.Non-Profit

Finding 2021-001: Eligibility and special tests and provisions Criteria: NYC Department of Homeless Services requires maintaining of participant files to document the members of the family, their birth date, sex and relationship to the head of household. Condition/Context: Seven out of forty participants tested had no Intake Forms documenting the members of the family, their birth date, sex and relationship to the head of household. Questioned Cost: None. Cause: The Company entered a lease agreement with an unrelated party, effective July 1, 2021, and the unrelated party is maintaining the building and taking over operations. During the transition, some backup documentation was lost. Effect: Management is not in compliance with eligibility and special tests and provisions requirements. Identification as a repeat finding: No. Recommendation: Since the Company entered a lease agreement with an unrelated party, effective July 1, 2021, and the unrelated party is maintaining the building and taking over operations, there are no procedures to implement in the future. The grant agreement expired on June 30, 2021 and will not be renewed with the Company. View of Responsible Officials: Management agrees with the above, however effective July 1, 2021 management of the property was transitioned to an unrelated party and the grant agreement was not renewed.

Finding 2019-001: Restatement of prior year financial statements Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are detected and correct by management in a timely manner. Condition: A material adjustment related to prior reporting periods was required in order for the financial statements to be fairly presented in accordance with generally accepted accounting principles in the United States. Questioned Cost: None. Cause: Management did not have a complete understanding of the accounting literature related to depreciation expense. Effect: Management may produce financial statements that are materially misstated. The net assets as of July 1, 2018 that were previously reported in the 2018 audited financial statements were understated by $424,188. Recommendation: Management should maintain fixed asset records and review all aspects of the records including depreciable lives on a quarterly basis. View of Responsible Officials: Management will implement procedures to ensure that the fixed asset records are properly maintained and depreciation expense is properly recorded.

Finding 2019-002: Timely Submission of Single Audit Report. Criteria: The Federal Audit Clearinghouse requires that the Data Collection Form be submitted within nine months of year end. Condition: The Data Collection Form for the year ended June 30, 2018 was not filed electronically with the Federal Audit Clearinghouse within nine months of the fiscal year end of the Company. Questioned Cost: None. Cause: The cause of the late submission was a delay in the engagement of an auditor, resulting in the audit not being completed until May 2019 and the late submission based on the due date of March 31, 2019. Effect: Management is not in compliance with the requirement to timely submit the Data Collection Form with the Federal Audit Clearinghouse. Recommendation: Management should institute procedures to ensure that the Data Collection form is electronically filed with the Federal Audit Clearinghouse within nine months of year end. View of Responsible Officials: Management will implement procedures to ensure that the form is timely submitted in the future.

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