Wood County Village II, IncNon-Profit

Wood County Village II, Inc. HUD Project No. 042-HD102 Audit Firm: GBQ Partners LLC Audit Period: 07/1/23-06/30/24 CAP Prepared by: Dustin Watkins, CEO A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 1. Finding 2024-001 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) – CFDA 14.181; Grant period – Year ended June 30, 2024 a. Comments on the Finding and Each Recommendation. Statement of Condition: The Project did not request tenant assistance payments for the month of April. Criteria: The Regulatory Agreement requires the Project to ensure controls exist to request the appropriate funds for each tenant on a monthly basis. Cause: The Project’s controls over monthly housing assistance payments were not working properly due to lack of management oversight due to turnover during the year. Effect of Condition: The Project is not in compliance with the HUD approved Regulatory Agreement. Recommendation: We recommend that the Project’s sponsor review the design and implementation of internal control procedures and identify areas to strengthen management oversight. b. Action(s) Taken or Planned on the Finding 1. The Project’s sponsor is aware of the requirements of the HUD Regulatory Agreement and is working with new staff to ensure they receive the proper training on HUD requirements. 2. In August 2024, the April 2024 HAP requests were submitted for payment.

Wood County Village II, Inc. HUD Project No. 042-HD102 Audit Firm: GBQ Partners LLC Audit Period: 07/1/23-06/30/24 CAP Prepared by: Dustin Watkins, CEO A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 2. Finding 2024-002 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) – CFDA 14.181; Grant period – Year ended June 30, 2024 a. Comments on the Finding and Each Recommendation. Statement of Condition: Security deposits assets collected from eligible families and the corresponding liability recorded, did not equal. Criteria: The HUD Handbook 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs requires that the owner must place security deposits in a segregated, interest bearing-account, the balance of which must at all times be equal to the total amount collected from the eligible family plus any accrued interest. Cause: The Project experienced a fire in June 2024 that caused a lapse in assigned responsibility for the reconciliation and transfer of security deposits. Effect of Condition: This Project was not in compliance with the HUD Handbook. Recommendation: We recommend that the Project’s sponsor verify, on a monthly basis, the required security deposit asset and liability account equal. b. Action(s) Taken or Planned on the Finding 1. The Project’s sponsor is aware of the requirement to maintain security deposit records. 2. Due to the fire and displacement of tenants, the security deposit account has not been fully reconciled subsequent to year.

2023-001

Wood County Village II, Inc. HUD Project No. 042-HD102 Audit Firm: GBQ Partners LLC Audit Period: 07/1/22-06/30/23 CAP Prepared by: Donna Jablonski, CEO A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 1. Finding 2023-001 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) – CFDA 14.181; Grant period – Year ended June 30, 2023 a. Comments on the Finding and Each Recommendation. Statement of Condition: Security deposit listing was not updated with the current tenants’ information, including tenants who had moved out, moved in, or changes in the security deposit requirements. Criteria: The HUD Handbook 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs requires the owner to utilize and refer to its security deposit records. Cause: The Project’s sponsor and management company experienced turnover in their accounting department during the year which caused a shift in assigned duties and responsibilities. During that shift in assigned duties there was a lapse in assigned responsibility for the transfer of security deposits. Effect of Condition: This condition resulted in the improper maintenance of security deposit records of the Project, resulting In possible unidentified noncompliance with HUD regulatory provisions. Recommendation: We recommend that the Project’s sponsor strengthen its internal control review function over security deposits to ensure the security deposit listing is properly maintained. b. Action(s) Taken or Planned on the Finding 1. The Project’s sponsor is aware of the requirement to maintain security deposit records. 2. In August 2023, the management company reconciled the account and has put in place measures to ensure that tenant security deposit account is maintained moving forward.