MHA FAIRFIELD COMMONS I, INC.

# Description Due From Due To Disposition A Due to/from Fairfield Commons 1,000.00 Replacement Reserves B Due to/from Trinity Park 585.00 Shared Expenses C Due to/from Wilton Commons 58,435.00 Error, not recorded on Wilton Books D Due to/from Maplewood 5,400.00 Shared Expenses E Due to/from 20-28 Fairfield Commons 33,867.12 Building sold F Due to/from Mutual Housing Association 153,452.00 MHA Investment G Due to/from Parkside Gables $219.90 Shared Expenses H Due to/from MHA Restricted 107,225.00 Owed to Parent Net Amount 77,959.00 Please note that Mutual Housing owns many properties and historically the accounting office was using the intercompany account to record shared expenses amongst properties. There were inadequate controls over this process which has led to many errors and a finding has been placed into the audit of the parent company, Mutual Housing for lack of internal controls. You will find this same event in the 2019 audit reports. In an effort to resolve, Mutual Housing has terminated the fiance staff and has outsourced the daily accounting to our Fee Accountant Markum, a national audit firm. Mutual Housing has been working very hard to clean the intercompany accounts to reflect the actual activity. This has been a long and laborious process. Item A ? Note this item states its owed to Fairfield Commons 1 (itself). This represents replacement reserves that was posted through the intercompany incorrectly. Item B, D, G ? We work diligently with our vendors to try to have as many invoices made out directly to the properties. There are some invoices in which this does not occur and the proportionate amount that the property was responsible for was being charged to the intercompany. We do not believe these amounts are due to Fairfield Commons 1 and the plan is to write them off. Item C ? We believe this is a journal entry error as it is not reflected as a due to on the part of Wilton Commons. Item E ? The Due to 20-28 Fairfield Commons is a building that was sold in January 2020. Fairfield Commons 1 will not have to repay this amount and it should be written off. Item F, H ? These 2 items are related to the parent company and if netted it reflects an amount of $46,227.00. These amounts are not reflected on the parent?s books and we believe to be an error. Please also understand that this is a small 6-unit building that would never have the cash flow to have $77,959.00 taken from its available cash. Annually the rental revenue is approximately $75,000.00 and every penny is utilized to cover the expenses. We are asking for you to wait until the 2020 fiscal year end audits are completed so that Mutual Housing can review all intercompany transactions and make the necessary adjustments. Thank you, Renee Dobos Chief Executive Officer

2018-001

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2017-001

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2017-003

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2016-001

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