WOODRIDGE NONPROFIT CORPORATION 04411116Non-Profit

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - 14.155 Supportive Housing for the Elderly Section 207 pursuant to Section 223(f) Finding Resolution Status - None Information on Universe and Population Size - N/A Sample Size Information - N/A Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Management Agent’s Certification agreement requires that management fees be calculated as a percentage of residential income collected, subject to a maximum cap of $52 per unit per month (PUPM). Statement of Condition - The Organization paid management fees in excess of the allowable amount by calculating fees based solely on a percentage of revenue without limiting the fees to the $52 PUPM cap required by the Management Agent’s Certification agreement. Cause - The Organization calculated management fees based on a percentage of revenue but did not have controls in place to ensure that fees were limited to the $52 PUPM cap required under the Management Agent’s Certification agreement. Effect or Potential Effect - Management fees of $5,820 were paid out in excess of those allowed by the Management Agent’s Certification agreement. Auditor Noncompliance Code - J - Unauthorized management fees Reporting Views of Responsible Officials - Responsible officials will update controls to ensure allowable amount per the Management Agent's Certification agreement is followed. Context - N/A Recommendation - We recommend that management revise its calculation of management fees to ensure amounts charged are limited to the allowable cap in accordance with the terms of the applicable federal award and the Management Agent’s Certification. In addition, we recommend that management enhance its internal controls over compliance by implementing documented review procedures to ensure management fees are calculated accurately and reviewed for allowability prior to payment. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - The auditee concurs with the finding. Management stated that it will refund management fees paid in excess of the allowable amount and will implement enhanced review controls to ensure future management fees comply with the Management Agent’s Certification agreement. Response Indicator - Agree Anticipated Completion Date - 12/31/2026 Response - The excess management fees will be adjusted for the year ended December 31, 2026, ensuring alignment with allowable limits. Management acknowledges the noncompliance identified in the current year, will implement corrective actions for this period, and is actively reviewing internal controls related to management fees for future periods.

Finding Type: - Noncompliance which could have a direct and material effect on the major programs - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - 14.157 - Section 207 Supportive housing for the elderly Finding Resolution Status - In Process Information on Universe and Population Size - Not applicable Sample Size Information - Not applicable Identification of Repeat Finding and Finding Reference Number - Not applicable Criteria - The Organization should have deposited its prior year surplus cash into its residual receipts account within 90 days, as required by HUD and recorded the related liability. Statement of Condition - The Organization failed to make the required deposit into its residual receipts account within 90 days. The deposit to the residual receipts was not made but will be made with the 2021 deposit of the calculation of surplus cash, this will be self-correcting. Cause - The Organization failed to monitor the cash requirements of the residual receipts account as specified by the regulatory agreement and the liability was understated. Effect or Potential Effect - The residual receipts account was underfunded in the current fiscal year by $30,208. Auditor Noncompliance Code - B - Failure to make required residual receipt deposits Reporting Views of Responsible Officials - Management agrees that surplus cash should be deposited into the residual receipts account within 90 days of year end. Context - This finding will be self corrected when the deposit of 2021 surplus cash is made. Recommendation - All required deposits should be made in accordance with the regulatory agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management should make the required deposits to the residual receipts account within 90 days of year end. Response Indicator - Agree Completion Date - March 31, 2022. Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management will ensure surplus cash is deposited into the residual receipts account within 90 days of year end.

Reference Number Finding 2019 001 Finding Type: Noncompliance which could have a direct and material effect on the major programs Material weakness in internal control over compliance Title and CFDA Number of Federal Program 14.157 Section 207 Supporting housing for the elderly Finding Resolution Status Resolved Information on Universe and Population Size Not applicable Sample Size Information Not applicable Identification of Repeat Finding and Finding Reference Number No applicable Criteria The Organization should have deposited its prior year surplus cash into its residual reserve account within 90 days as required by HUD. Statement of Condition The Organization failed to make the required deposit into its residual reserve account within 90 days. The deposit to the residual reserve was not made until July 31, 2019. Cause The Organization failed to monitor the cash requirements of the residual receipts account as specified by the Regulatory Agreement. Effect or Potential Effect The residual receipt account was underfunded for a portion of the fiscal year by $39,976. Auditor Noncompliance Code P Investment of residual receipts Reporting Views of Responsible Officials Management agrees that surplus cash should be deposited into the residual receipts account within 90 days of year end. Recommendation All required deposits should be made in accordance with the regulatory agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management should make the required deposits to the residual receipts account within 90 days of year end. Response Indicator Agree Completion Date December 31, 2019 Response Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management will ensure surplus cash is deposited into the residual receipts account within 90 days of year end.

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