Gethsemane Manor Housing Development Fund Company, Inc.

Finding No. 2025-001: Current Year audit submission was late. a. The Gethsemane Manor Housing Development Fund Company, Inc. December 31, 2025 audit was not submitted to the Real Estate Assessment Center (REAC) within 90-days. b. Criteria: The HUD regulatory agreement requires the audit to be submitted to the Real Estate Assessment center within 90-days of yearend. c. Effect of condition: The effect is that the project would not be in compliance with HUD regulations. d. Cause of condition: The audit material was submitted late to the auditor due to an unexpected software implementation issue. e. Recommendation: We recommend that management implement procedures to ensure that audit material is submitted to the auditor in a timely manner in the future. f. Views of responsible officials and planned corrective actions: Gethsemane Manor Housing Development Fund Company, Inc. agrees with the finding and the auditor’s recommendations have been adopted.

a. Statement of Condition: Gethsemane Manor 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: Gethsemane Manor Apartments experienced operating cash flow issues during 2023 due to vacancies. e. Recommendation: Gethsemane Manor 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: Gethsemane Manor Apartments agrees with the finding and the auditor’s recommendations have been adopted.

a. Statement of Condition: The audited financial statements, reports and supplemental information for the year ended December 31, 2021 were not submitted to the REAC within 90 days of the Corporation?s fiscal year end, and was not submitted to the Federal Audit Clearinghouse within nine months of the fiscal year end. b. Criteria: Audits of financial statements of HUD projects are required to be submitted to the REAC 90 days after the end of the fiscal year and audits of financial statements and supplemental information performed under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (?Uniform Guidance?) are required to be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditors? report, or nine months after the end of the fiscal year, whichever comes first. c. Effect of Condition: The project is not in compliance with the requirements of HUD and Uniform Guidance. d. Cause of Condition: The audit of the financial statements was not completed in the specified time period. e. Recommendation: Gethsemane Manor Apartments should implement controls to ensure necessary information is available for timely completion of the audit and submission of the audited financial statements to the REAC and the Federal Audit Clearinghouse within the required timeframe. f. Views of Responsible Officials and Planned Corrective Actions: Management of the Gethsemane Manor Apartments agrees with the finding and the auditor?s recommendations have been adopted.