Plum Presbyterian Supportive Housing, Inc. D/B/A Plum Creek Acres

Federal Program: Section 207/223(f) - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Assistance Listing Number: 14.155 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agency: N/A Award Number: 033-11073 Award Year: 2024 Compliance Requirement: Eligibility Questioned Costs: Not Determinable Criteria: The Corporation is required to have all new residents sign a Form HUD-9887 and a Resident Rights and Responsibilities document upon move-in. Condition and Context: The Corporation did not have these documents signed and maintained in the resident file for one out of four residents selected for testwork. Cause: The Corporation lacks an adequate review process for the resident files to ensure all required documents are obtained and stored in the resident file. While the majority of required information was present, missing documents were not detected in a timely manner. Effect or Potential Effect: As a result of the review process, noncompliance due to error or fraud could occur without being detected and corrected, timely. Recommendation: Management should implement a structured review process for the resident files to ensure they are complete and missing information is detected timely. Management's Response: The Corporation will implement a standard review process over the resident files to prevent and detect errors on a timely basis.

The following represents the Corrective Action Plan related to the audit finding listed in the Schedule of Findings and Questioned Costs included in the December 31, 2024 audited financial statements of Plum Presbyterian Senior Housing, Inc. d/b/a Plum Creek Acres (the “Corporation”). Finding 2024-001: Incomplete Documentation of New Residents Condition and Criteria: The Corporation is required to have all new residents sign a Form HUD-9887 and a Resident Rights and Responsibilities document upon move-in. The Corporation did not have these documents signed and maintained in the resident file for one out of four residents selected for testwork. Management Response and Corrective Action Plan: Management agrees with the finding. The Corporation is implementing an updated standard review process over the resident files to prevent and detect errors on a timely basis.

Department of Housing and Urban Development (HUD). Condition and Criteria: The Corporation is required to input the HUD-approved rent amount for each unit into the OneSite system. In 2021, an approved rent increase was not updated in the system. Cause: The apartment manager never input the rate increase from the prior year. Effect: Rent was undercharged to HUD from January 1, 2021 through December 31, 2021. Recommendation: The Corporation should correct the rent amount in OneSite, contact HUD about receiving the additional rent revenue retroactive to January 1, 2021, and implement controls to mitigate this risk going forward. anagement agrees with the finding and is implementing procedures to avoid similar findings in the future. See corrective action plan.

Finding 2021-001: Incorrect rent per unit charged to U.S. Department of Housing and Urban Development Condition and Criteria: The Corporation is required to enter the HUD approved rent amount each month for each unit into the OneSite system. During 2021, an approved rent increase was not updated in the system. As a result, rent was undercharged to HUD in 2021. Management Response and Corrective Action Plan: Management agrees with the finding. The Corporation is implementing procedures to assure rent modifications are entered into the OneSite system on a timely basis.

Finding 2020-001 - Failure to deposit the correct monthly amount for the Reserve for Replacement. Condition and Criteria: The Corporation failed to deposit the correct amount for the monthly reserve for replacement deposit in one month. The amount was $64 less than required. In accordance with the Corporation's regulatory agreement, the Corporation is required to deposit the required amount each month into its reserve for replacement account. Cause: The Corporation deposited the incorrect amount into its reserve for replacement account in one month. Effect: The Corporation is not in compliance with HUD regulations. Recommendation: The Corporation should deposit the difference to increase the account balance to the required amount. Management Response and Corrective Action Plan: Management agrees with the finding and is implementing procedures to avoid similar findings in the future. See corrective action plan. Questioned Costs: None.

The following represents the Corrective Action Plan related to the audit finding listed in the Schedule of Findings and Questioned Costs included in the December 31, 2020 audited financial statements of Plum Presbyterian Senior Housing, Inc. d/b/a Plum Creek Acres Finding 2020-001: Failure to deposit the correct monthly amount into the Reserve for Replacement Account. Condition and Criteria: The Corporation failed to make the correct amount for the monthly reserve for replacement deposits during one month in 2021. The amount was $64 less than the required amount. In accordance with the Corporation?s regulatory agreement, the Corporation is required to deposit the required amount each month into its Reserve for Replacement account. Management Response and Corrective Action Plan: Management agrees with the finding. The Corporation made an additional deposit of $64 in February 2021 to satisfy this deficiency.