MAC HOUSING DEVELOPMENT FUND CORPORATIONNon-Profit

Condition - The reserve for replacements account is underfunded by $3,000 at September 30, 2025. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit $1,000 in a reserve for replacements account on a monthly basis. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2024-002 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $3,000 for the year ended September 30, 2025 be deposited into the reserve for replacements account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management will deposit the delinquent amount of $3,000 into the reserve for replacements account by the end of January 2026.

Condition - The residual receipts account is underfunded by $52,634 at September 30, 2025. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit surplus cash in a residual receipts account. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The residual receipts account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2024-003 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $52,634 for the year ended September 30, 2025 be deposited into the residual receipts account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management will reach out to HUD to request a wavier of the delinquent amount of $52,634. If the request does not get approved, Management will work towards an acceptable resolution.

Condition - The Corporation has not submitted Form SF-SAC to the Federal Audit Clearinghouse for the year ended September 30, 2024 within the required timeframe. Criteria - According to the Uniform Guidance compliance requirements, the audit package and the data collection form shall be submitted 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. Effect - The Corporation was not in compliance with the above Uniform Guidance compliance requirement. Cause - Due to the complications of the transfer of management companies, management was not able to have the audit completed within the required timeframe. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2023-001 from the prior year. Recommendation - We recommend that management submit the Form SF-SAC as soon as possible for the year ended September 30, 2024. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management will submit the Form SF-SAC to the Federal Audit Clearinghouse as soon as the audit is received for the year ended September 30, 2024.

Condition - The reserve for replacements account is underfunded by $27,000 at September 30, 2024. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit $1,000 in a reserve for replacements account on a monthly basis. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2023-002 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $27,000 for the year ended September 30, 2024 be deposited into the reserve for replacements account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management has deposited the underfunded amount as of the date of this report.

Condition - The residual receipts account is underfunded by $48,275 at September 30, 2024. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit surplus cash in a residual receipts account. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The residual receipts account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2023-003 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $48,275 for the year ended September 30, 2024 be deposited into the residual receipts account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management has deposited the underfunded amount as of the date of this report.

Condition - The Corporation has not submitted Form SF-SAC to the Federal Audit Clearinghouse for the year ended September 30, 2023 within the required timeframe. Criteria - According to the Uniform Guidance compliance requirements, the audit package and the data collection form shall be submitted 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. Effect - The Corporation was not in compliance with the above Uniform Guidance compliance requirement. Cause - Due to the complications of the transfer of management companies, management was not able to have the audit completed within the required timeframe. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2022-002 from the prior year. Recommendation - We recommend that management submit the Form SF-SAC as soon as possible for the year ended September 30, 2023. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management will submit the Form SF-SAC to the Federal Audit Clearinghouse as soon as the audit is received for the year ended September 30, 2023.

Condition - The reserve for replacements account is underfunded by $15,000 at September 30, 2023. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit $1,000 in a reserve for replacements account on a monthly basis. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2022-001 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $15,000 for the year ended September 30, 2023 be deposited into the reserve for replacements account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management has deposited the underfunded amount as of the date of this report.

Condition - The residual receipts account is underfunded by $14,849 at September 30, 2023. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit surplus cash in a residual receipts account. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The residual receipts account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - We recommend that the delinquent deposits totaling $14,849 for the year ended September 30, 2023 be deposited into the residual receipts account as soon as possible. Management's Reply -(a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management has deposited the underfunded amount as of the date of this report.

Condition - The reserve for replacements account is underfunded by $3,000 at September 30, 2022. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit $1,000 in a reserve for replacements account on a monthly basis. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - We recommend that the delinquent deposits totaling $3,000 for the year ended September 30, 2022 be deposited into the reserve for replacements account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management has deposited the underfunded amount on October 20, 2022.

Condition - The Corporation has not submitted Form SF-SAC to the Federal Audit Clearinghouse for the year ended September 30, 2022 within the required timeframe. Criteria - According to the Uniform Guidance compliance requirements, the audit package and the data collection form shall be submitted 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. Effect - The Corporation was not in compliance with the above Uniform Guidance compliance requirement. Cause - Due to the complications of the transfer of management companies, management was not able to have the audit completed within the required timeframe. Recommendation - We recommend that management submit the Form SF-SAC as soon as possible for the year ended September 30, 2022. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will submit the Form SF-SAC to the Federal Audit Clearinghouse as soon as the audit is received for the year ended September 30, 2022.

(2019-001) Reserve for Replacements Condition - The reserve for replacements account is underfunded by $1,000 for the year ended September 30, 2019. Criteria - HUD requires that the reserve for replacements account to be funded $1,000 monthly. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not funded for one month during the year. Recommendation - We recommend that the delinquent deposit totaling $1,000 for the year ended September 30, 2019 be deposited into the reserve for replacements account as soon as possible. Management's Reply - Management informed us that the amount will be deposited as soon as cash flow allows.