Catherine Street Housing Development Fund Company, Inc.Non-Profit

Finding No. 2023-001: Prior Year Reporting Package and Data Collection Not Filed Timely a. The Catherine Street Housing Development Fund Company, Inc. June 30, 2022 reporting package and data collection form was not filed with the federal audit clearinghouse on time. b. 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. c. Effect of condition: The effect is that the project would not be considered a "Low Risk Auditee" for at least the fiscal years ending June 30, 2023 and June 30, 2024. 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. d. Cause of condition: The reporting package and data collection form was submitted to the federal audit clearinghouse 330 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 December 8, 2023. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: Mount Carmel Apartments agrees with the finding and the auditor’s recommendations have been adopted.

Finding No. 2021-001: Supportive Housing for the Elderly (Section 202) ? CFDA No. 14.157 a. Statement of Condition: Mount Carmel Apartments did not make all twelve required deposits to the replacement reserve account. b. Criteria: Mortgagor must deposit a HUD-determined amount into the reserve fund for replacements each month per the HUD Regulatory Agreement. c. Effect of Condition: The project is not in compliance with the HUD Regulatory Agreement. d. Cause of Condition: Mount Carmel Apartments converted to new software during the current year. After conversion the recurring deposit was not made automatically causing one month to be missed. This error was caught and corrected after year end. e. Recommendation: Mount Carmel Apartments should deposit the necessary funds as soon as possible to ensure that the replacement reserve is fully funded in accordance with the HUD Regulatory Agreement. f. Views of Responsible Officials and Planned Corrective Action: Mount Carmel Apartments agrees with the finding and the auditor?s recommendations have been adopted.