ASI Freeport, Inc.Non-Profit

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Criteria: The tenant file should contain a copy of the tenant's disability verification. Effect: There is no financial effect. Context: A sample of tenant files was selected to ensure that proper documentation was included. The test found that one of the files tested was not in compliance. The non-compliance did not have a financial effect. The details and results of the sample are as follows: Population - 22, Dollars - N/A; Sample -3, Dollars - N/A; Not in Compliance - 1, Dollars - N/A; Questioned Costs - None; Cause: A copy of the tenant's disability verification was not obtained and placed into the tenant file. Recommendation: The Project should obtain a copy of the tenant's disability verification and place it in the tenant file. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. They will remind Project personnel of the importance of obtaining a copy of each tenant's disability verification and placing it in the tenant file. Total-Department of Housing and Urban Development - $0; Non-compliance code: R

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees by $755 to the management company. Criteria: Management fees should be calculated according to HUD guidelines. Effect: The Project's management fee is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee charged by the management company was more than the calculated amount. No sample was tested. Questioned Costs - $755; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should reimburse the Project for the $755 overpayment. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fee as soon as possible. Total-Department of Housing and Urban Development -$755; Non-compliance code - J

FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - Condition: One of three tenant files tested did not contain a signed lease and a signed disability form. Criteria: All tenant files should include the tenant's signed lease and a signed disability form. Effect: The Project may not have collected the proper amount of HUD rent subsidy. Context: A sample of tenant files were selected for testing tenant information in the process of computing the tenant share of monthly rent. The test found one file did not include a copy of the tenant's signed lease or a signed disability form. The non compliance did not have a financial effect. The details and results of the sample are as follows: Population - 22, $123318, Sample - 3, $13836, Not in compliance -1, $3384, Questioned costs - $3384. Cause: The management company failed to retain the tenant's signed lease and a signed disability form during the certification process. Recommendation: Project personnel should be reminded that obtaining a signed lease and a signed disability form is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. Questioned Costs - Department of Housing and Urban Development - $3,384. Non-compliance code - R

FINDING 2023-002: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of three tenant files tested did not contain a copy of the tenant's signed application. Criteria: All tenant files should include a copy of the tenant's signed application. Effect: There is no financial effect. Context: A sample of tenant files were selected for testing tenant information in the process of computing the tenant share of monthly rent. The test found one file did not include a copy of the tenants signed application. The non compliance did not have a financial effect. The details and results of the sample are as follows: Population-22, $123,318. Sample - 3, $13,836. Not in compliance - 1, Questioned costs - None. Cause: The management company failed to obtain the tenant's signed application during the move-in process. Recommendation: Project personnel should be reminded that retaining a signed application is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. Questioned Costs - Department of Housing and Urban Development - None. Non-compliance code - R

ASI FREEPORT, INC. HUD PROJECT NO. 071-HD175 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED MARCH 31, 2021 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2021-001: SECTION 811, CFDA 14.181 Condition: The Project paid $3,136 of health insurance expense for another Project under common management. Criteria: The Project should not pay the expenses of another project. Effect: The amount of expenses incorrectly paid was $3,136. Context: There was no sample selected for health insurance expense. The activity for the year was tested 100%. Analytic procedures had highlighted a potential issue in that account. Questioned Costs $3,136 $96 Cause: The Project mistakenly paid a health insurance allocation of another project under common management. Recommendation: The Project should carefully review disbursement documentation before payment to make sure it pays the correct amounts. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when paying health insurance amounts. Total-Department of Housing and Urban Development $3,136 $96 Non-compliance code - R

C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2020-001: SECTION 811, CFDA 14.181 Condition: One of three tenant files tested did not contain a copy of the tenant's social security card and a signed disability form. Criteria: All tenant files should include a copy of the tenant's social security card and a signed disability form. Effect: There is no financial effect. Context: A sample of tenant files were selected for testing tenant information in the process of computing the tenant share of monthly rent. The test found one file that didn't include a copy of the tenant's social security card or a signed disability form. The non compliance did not have a financial effect. The details and results of the sample are as follows: Number Dollars Population 22 $99,356 Sample 3 $16,536 Not in complaince 1 None Questioned costs None Cause: The management company failed to obtain support for the tenant's social security number and a signed disability form during the certification process. Recommendation: Project personnel should be reminded that obtaining support for the tenant's personal information is an important step in tenant management. The documents were obtained subsequent to the audit fieldwork. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Recertification staff will be reminded to obtain the proper documentation during the recertification process. Questioned Costs - Department of Housing and Urban Development None Non-compliance code - R

C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2020-002: SECTION 811, CFDA 14.181 Condition: In 2 of 20 cash disbursements tested, the Project paid the expense of another project under common management. Criteria: The Project should not pay the expenses of another project. Effect: The amount of expenses incorrectly paid was $96 out of a total sample of disbursements of $8,244. Context: A sample of disbursements was selected for testing of compliance. The test found two disbursements that were not in compliance. The non compliances had a financial effect outlined below. The details and results of the sample are as follows: Number Dollars Population 170 $174,406 Sample 20 $8,244 Not in Compliance 2 $96 Questioned Costs $96 Cause: The Project mistakenly paid two invoices of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it pays the correct invoices. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. Total-Department of Housing and Urban Development $96 Non-compliance code - R

ASI FREEPORT, INC. HUD PROJECT NO. 071-HD175 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED MARCH 31, 2019 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2019-001: SECTION 811, CFDA 14.181 Condition: For one of three tenant files examined, the Project did not perform the required tenant recertification procedures. Criteria: The Project should perform recertification procedures on tenants on an annual basis. Effect: The Project may not have collected the proper amount of HUD rent subsidy. Context: A sample of tenant files was selected for testing tenant recertification. The test located one recertification that was not in compliance. The details and results of the sample are as follows: Number Dollars Population 22 $108,079 Sample 3 16,944 Not in complaince 1 1,040 Questioned costs $1,040 Cause: The tenant has been ill and the Project has not been able to complete the recertification process. Recommendation: Project personnel should immediately complete the recertification and be reminded that timely recertification is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Recertification staff will be reminded to be aware of deadlines to ensure recertifications are completed in a timely manner. Questioned Costs - Department of Housing and Urban Development $1,040 Non-compliance code - R

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