AHEPA 78 Phase II, Inc.

S3800-010 Finding reference number - 2022-001; S3800-011 Title and AL number of federal program - Supportive Housing for the Elderly, AL # 14.157; S3800-015 Type of finding - Federal Award Finding; S3800-016 Finding Resolution status Resolved; S3800-017 Information on universe population size - not applicable; S3800-018 Sample size information - not applicable; S3800-019 Identification of repeat finding and finding reference number - not applicable; S3800-020 Criteria - The Regulatory Agreement requires the deposit due residual receipts as determined by the "Computation of Surplus Cash, Distributions and Residual Receipts" to be made within 90 days of year-end in a separate bank account for Residual Receipts. S3800-030 Statement of condition - The Project did not make the required deposit to the residual receipt account per the Regulatory Agreement.; S3800-035 Auditor non-compliance code - B - Failure to Make Required Residual Receipts Deposits; S3800-037 FHA/Contract number - 073-EE034; S3800-040 Questioned costs - $33,543; S3800-045 Reporting views of responsible officials - Management concurs with the auditors' recommendation and has made the necessary deposit and the residual receipts is currently funded based on the requirements of the Regulatory Agreement.; S3800-080 Recommendation - Management should monitor internal controls over compliance.; S3800-090 Auditors' summary of the auditee's comments on the findings and recommendations - Management agrees and has made the necessary deposit after year-end.; S3800-130 Response indicator - Agree; S3800-140 Anticipated Completion Date - Completed (9/16/2022); S3800-150 Response - Concurs.

Finding 2022-001 - (Supportive Housing for the Elderly 14.157); Concur or Do Not Concur with this Finding - Concur; Agree or Disagree with auditor recommendations - Agree; Completion Date or Proposed Completion Date -September 16, 2022; Actions Taken or Planned on the Finding - Management has made the required deposit into the residual receipts account.; Contact Person First Name - Dawn; Contact Person Last Name - Cole.

S3800-010 Finding reference number - 2022-002; S3800-011 Title and AL number of federal program - Supportive Housing for the Elderly, AL # 14.157; S3800-015 Type of finding - Federal Award Finding; S3800-016 Finding Resolution status - Resolved; S3800-017 Information on universe population size - not applicable; S3800-018 Sample size information - not applicable; S3800-019 Identification of repeat finding and finding reference number - not applicable; S3800-020 Criteria - The Regulatory Agreement requires the deposit due residual receipts as determined by the "Computation of Surplus Cash, Distributions and Residual Receipts" to be made within 90 days of year-end in a separate bank account for Residual Receipts.; S3800-030 Statement of condition - Operation over the internal control over compliance did not prevent or detect and correct material noncompliance on a timely basis by management or employees in the normal course of performing their assigned functions.; S3800-035 Auditor non-compliance code - B - Failure to Make Required Residual Receipts Deposits; S3800-037 FHA/Contract number - 073-EE034; S3800-040 Questioned costs - n/a; S3800-045 Reporting views of responsible officials- Management concurs with the auditors' recommendation and has made the necessary changes to internal control over compliance.; S3800-080 Recommendation - Management should monitor internal controls over compliance.; S3800-090 Auditors' summary of the auditee's comments on the findings and recommendations - Management concurs S3800-130 Response indicator - Agree S3800-140 Anticipated Completion Date - Completed (9/26/2022) S3800-150 Response - Concurs

Finding 2022-002 - (Supportive Housing for the Elderly 14.157); Concur or Do Not Concur with this Finding - Concur; Agree or Disagree with auditor recommendations - Agree; Completion Date or Proposed Completion Date -September 26, 2022; Actions Taken or Planned on the Finding - Management has strengthened and improved internal control over compliance with respect to required residual receipts deposit.; Contact Person First Name - Dawn; Contact Person Last Name - Cole.