Antwerp Housing Development Fund Company, Inc.

STATEMENT OF CONDITION: The management company did not make required monthly transfers to the reserve account in accordance with RD regulations. CRITERIA: RD regulations require that the owners must maintain proper reserve account balances for project capital needs in accordance with 7 CFR 3560.302. EFFECT: The projects reserve account is underfunded. CAUSE: The management company did not make transfers to the reserve account. RECOMMENDATION: Management should make monthly transfers to the reserve account. RESPONSE: Management is in contact with Rural Development regarding this finding and will proceed based on Rural Development’s recommendation.

Finding 2023-001 Replacement Reserves Underfunded: Recommendation: We recommend that management make monthly transfers to the replacement reserve. Action taken: Antwerp Housing Development Fund Company, Inc. agrees with the auditor’s recommendations and has been in contact with USDA Rural Development and will proceed based on Rural Development’s recommendations. For questions regarding this corrective action plan, please contact Kristi Dippel, Executive Director, at 315-686-3212 x2.

2022-001

STATEMENT OF CONDITION: The Antwerp Housing Development Fund Company Inc. December 31, 2022 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time. CRITERIA: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. EFFECT: The effect is that the project would not be considered a “Low Risk Auditee” for at least the fiscal years ending December 31, 2024 and December 31, 2025. This designation will require the auditor to audit at least 40% of the project’s programs as Major programs until such time that the project may be considered a “Low Risk Auditee” again. CAUSE: The reporting package and data collection form was submitted to the Federal Audit Clearinghouse 172 days late due to management not monitoring CPA firm to enter data in data collection form as agreed upon resulting in a late filing. The form was submitted on March 20, 2024. RECOMMENDATION: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. RESPONSE: Views of responsible officials and planned corrective actions: Antwerp Housing Development Fund Company, Inc. agrees with the finding and the auditor’s recommendations have been adopted.

Finding 2023-002 Prior Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: Antwerp Housing Development Fund Company, Inc. agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact Kristi Dippel, Executive Director, at 315-686-3212 x2.

STATEMENT OF CONDITION: The management company did not make required monthly transfers to the reserve account in accordance with RD regulations. CRITERIA: RD regulations require that the owners must maintain proper reserve account balances for project capital needs in accordance with 7 CFR 3560.302. EFFECT: The projects reserve account is underfunded. CAUSE: The management company did not make transfers to the reserve account. RECOMMENDATION: Management should make monthly transfers to the reserve account. RESPONSE: Management is in contact with Rural Development regarding this finding and will proceed based on Rural Development’s recommendation.

Finding 2022-001 Replacement Reserves Underfunded: Recommendation: We recommend that management make monthly transfers to the replacement reserve. Action taken: Antwerp Housing Development Fund Company, Inc. agrees with the auditor’s recommendations and has been in contact with USDA Rural Development and will proceed based on Rural Development’s recommendations. For questions regarding this corrective action plan, please contact Kristi Dippel, Executive Director, at 315-686-3212 x2.