Foxhill Manor Cooperative, Inc.

The Cooperative failed to make the required deposit within 90 days subsequent to the end of the fiscal year ended April 30, 2022 into the residual receipts account.

Management is appealing to HUD regarding the required deposit. Funds are not currently available to make the prior year required deposit.

2022-001

Management fees expensed during the year ended April, 30, 2023 were in excess of 7.21% of residential income collected.

Management has paid back the excess management fees and has updated their calculation for future payments.

Management refused to provide the auditors with documentation regarding tenant files, applicant rejections, and tenant move-outs.

Management will coordinate with the auditors to schedule on-location testing of tenant files and any additional documentation not sent electronically.

S3800-010 Finding Reference Number 2022-001 S3800-011 Title and CFDA Number of Federal Program - Section 223(a)(7) Mortgage 14.155 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with the Regulatory Agreement between the Cooperative and HUD, Surplus Cash is required to be deposited in a residual receipts account in the name of the Cooperative within 90 days subsequent to the end of the fiscal year. S3800-030 Statement of Condition ? The Corporation failed to make the required deposit within 90 days subsequent to the end of the 2021 fiscal year into the residual receipts account. S3800-032 Cause ? A change in regional manager caused the required deposit to be overlooked. S3800-033 Effect or Potential Effect - The Corporation is in violation of its Regulatory Agreement between the Corporation and HUD. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management is requesting a waiver of the required deposit. S3800-050 Context ? The required deposit for the year ended April 30, 2021 was not made within 90 days of year-end. The amount was calculated, but the deposit was not made. S3800-080 Recommendation ? Management needs to ensure the residual receipts deposit is made within 90 days of year- end. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management needs to ensure the residual receipts deposit is made within 90 days of year- end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? August 1, 2023 S3800-150 Response ? Management is requesting a waiver of the required deposit. If denied, management will deposit fund into the residual receipts account.

Foxhill Manor Cooperative, Inc. respectfully submits the following Corrective Action Plan for the year ended April 30, 2022. Name and address of the independent public accounting firm who conducted the related audit: Comer, Nowling And Associates, P.C. 10475 Crosspoint Boulevard, Suite 200 Indianapolis, Indiana 46256 Finding 2022-001 Corrective Action Planned ? Management is requesting a waiver of the required deposit. If denied, management will deposit funds into the residual receipts account. Contact Person(s) Responsible ? Basim Abdalla, Owner, Triangle Associates Anticipated Completion Date ? August 4, 2022 Auditee Disagreements ? N/A This corrective action plan was prepared by Triangle Associates, the management company, on behalf of Foxhill Manor Cooperative, Inc. ________________________________ Basim Abdalla, Owner Triangle Associates 1712 N Meridian, Suite 300 Indianapolis, IN 46202 317-921-1170