Old Towne Square, Inc.Non-Profit

ALN# 14.157- Supporting Housing for the Elderly 2025-001-Lack of Adequate Quality Control Regarding Tenant Procedures- Eligibility Criteria and Condition The quality of supervision over tenant file functions, such as calculating tenant rent and Housing Assistance Payments should be timely and sufficient to find errors in calculations or mis-application or mis-understanding of procedures. Context We did not note any exceptions in the tenant files that we reviewed. However, there was no documented quality control of the waiting list and tenant files. Statement of Auditing Standards (SAS) No. 115 defines what is considered “material weaknesses” in internal control. The examples given by the Standard includes “inadequate design of controls over a significant amount or process.” Lack of documented representative checks regarding the waiting list and tenant files are considered a lack of controls. Cause Apparent oversight Effect Errors are not detected and corrected, if necessary, on a timely basis. Questioned Costs None Recommendation Quality control checks should be done at least on a quarterly basis. View of Responsible Official I am Anna Richman, Executive Director. I only became Executive Director in December 2025. We have a person now designated to perform and document timely review on the waiting list and tenant file functions.

CFDA# 14.157- Supporting Housing for the Elderly 2024-001-Lack of Adequate Quality Control Regarding Tenant Procedures- Eligibility Criteria and Condition The quality of supervision over tenant file functions, such as calculating tenant rent and Housing Assistance Payments should be timely and sufficient to find errors in calculations or mis-application or mis-understanding of procedures. Context We did not note any exceptions in the tenant files that we reviewed. However, there was no documented quality control of the waiting list and tenant files. Statement of Auditing Standards (SAS) No. 115 defines what is considered “material weaknesses” in internal control. The examples given by the Standard includes “inadequate design of controls over a significant amount or process.” Lack of documented representative checks regarding the waiting list and tenant files are considered a lack of controls. Cause The person who was in charge of this unexpectedly passed away last year. Effect Errors are not detected and corrected, if necessary, on a timely basis. Questioned Costs None Recommendation Quality control checks should be done at least on a quarterly basis. View of Responsible Official I am Rita Love, Executive Director. We will comply with the auditor’s recommendation.

2022-001-Waiting List Needs Improvement Criteria and Specific Requirement Documentation should be available to prove all admits were currently at the top of the waiting list. Condition Found We could not locate current year move-ins. Since we could not locate them on the list, we do not know if they reached the top of the list, when they were offered. The entity uses a computerized waiting list. Once someone is admitted, they are deleted from the waiting list. Cause It appears the cause was due to oversight. Effect Documentation does not exist that shows these admits had properly reached the top of the waiting list. Recommendation A screen shot should be made of the list before anyone is admitted. If there are others ahead of the admitted applicant on the list, a written explanation should be added, such as ?unable to locate? or ?no longer interested.? These screen shots should not only be kept in the tenant?s file, but in a separate file for third party review. In addition, at least monthly, a screen shot should be made of the entire waiting list, and transferred and kept in a PDF file. Origination Date and Prior Year Reference This is the second year of the audit finding. However, this audit year was almost over when we performed our initial audit for the entity. View of Responsible Official I am Rita Love, Executive Director and Designated Person to answer this audit finding. We will comply with the auditor?s recommendation.

2021-001-Waiting List Needs Improvement Criteria and Specific Requirement Documentation should be available to prove all admits were currently at the top of the waiting list. Condition Found According to a Move-In Report kept on the entity?s software, there were only three admits for the year ended June 30, 2021. However, we could not locate them on the waiting list. Since we could not locate them on the list, we do not know if they reached the top of the list. The entity uses a computerized waiting list. Once someone is admitted, they are deleted from the waiting list. Cause It appears the cause was due to oversight. Effect Documentation does not exist that shows these admits had properly reached the top of the waiting list. Recommendation A screen shot should be made of the list before anyone is admitted. If there are others ahead of the admitted applicant on the list, a written explanation should be added, such as ?unable to locate? or ?no longer interested.? These screen shots should not only be kept in the tenant?s file, but in a separate file for third party review. In addition, at least monthly, a screen shot should be made of the entire waiting list, and transferred and kept in a PDF file. Origination Date and Prior Year Reference This is the first year of the audit finding. View of Responsible Official I am Rita Love, Executive Director and Designated Person to answer this audit finding. We will comply with the auditor?s recommendation.