ASI-RENO, INC.Non-Profit

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Criteria: Household income should be computed accurately based on information provided by the tenant. Effect: There is no financial effect. Context: A sample of tenant files was selected for testing household income in the process of computing the tenant share of monthly rent. The test found a calculation that was not in compliance. The non-compliance did not have a financial effect. The details and results of the sample are as follows: Population - 16, Dollars - N/A; Sample - 2, Dollars - N/A; Not in Compliance - 1, $140; Questioned Costs - $140. Cause: There was an error in interpreting some information provided by the tenant during the certification process. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Tenant rent will be recomputed and management will adjust a future monthly HUD billing. Total-Department of Housing and Urban Development -$140; Non-compliance code - R

FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at December 31, 2023. Criteria: The Project withdrew funds from the replacement reserve account that were subsequently reimbursed by the insurance company. Effect: The replacement reserve cash balance was $5,500 less than it should be at December 31, 2023. Context: Activity in the replacement reserve account for the year ended December 31, 2023 was tested. No sample was tested. Questioned Costs - $5,500, Cause: The Project failed to deposit funds into the replacement reserve account upon receiving the insurance reimbursement. Recommendation: The Project should deposit $5,500 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $5,500 into the replacement reserve account. Total-Department of Housing and Urban Development - $5,500; Non-compliance code - N

ASI - RENO, INC. HUD PROJECT NO. 121-HD011-NP-WPD SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 25 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 $77 out of a total sample of disbursements of $15,411. Context: A sample of disbursements was selected for testing of compliance. The test found one disbursement that was not in compliance. The non compliance had a financial effect outlined below. The details and results of the sample are as follows: Number Dollars Population 174 $137,508 Sample 25 15,411 Not in Compliance 1 77 Questioned Costs $77 Cause: The Project mistakenly paid part of an invoice of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. 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 $77 Non-compliance code - R

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