EAGLE COURT APARTMENTS

FINDING 2024-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: One of the tenant files tested did not contain a social security card or a completed move-in inspection. Criteria: The tenant file should contain a copy of the tenant's social security card and a completed move-in inspection. Effect: There is no financial effect. Context: A sample of tenant files was selected to ensure compliance with HUD regulations. 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 - 12, Dollars - N/A; Sample - 2, Dollars - N/A; Not in Compliance - 1, N/A; Questioned Costs - None; Cause: A copy of the tenant's social security card and move-in inspection were not obtained at the time of move-in. Recommendation: The Project should obtain a copy of the tenant's social security card and move-in inspection. If the move-in inspection cannot be located, the Project should document in the file that an inspection was performed but the report has been misplaced. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will remind staff that obtaining a copy of the tenant's social security card and move-in inspection is an important part of tenant management. Total-Department of Housing and Urban Development - None; Non-compliance code: R

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Eagle Court Apartments respectfully submits the following corrective action plasn for the year ended September 30, 2024. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2024 The findings from the September 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT- NONE; FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: One of the tenant files tested did not contain a social security card or a completed move-in inspection. Recommendation: The Project should obtain a copy of the tenant's social security card and move-in inspection. If the move-in inspection cannot be located, the Project should document in the file that an inspection was performed but the report has been misplaced. Action taken: The Project agrees with the finding. The Project has asked the tenant to provide their social security card and they have made a note in the file that the move-in inspection was completed but the form was misplaced.

FINDING 2024-002: SECTION 202, Assistance Listing Number 14.157 Condition: One of the tenant files tested did not contain a signed EIV Acknowledgement Form, which acknowledges that the tenant received an EIV handbook from Project management. Criteria: All forms required by HUD should be included in the recertification process. Effect: There is no financial effect. Context: A sample of tenant files was selected to ensure compliance with HUD regulations. 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 - 12, Dollars - N/A; Sample - 2, Dollars - N/A; Not in Compliance - 1, N/A; Questioned Costs - None; Cause: Project management failed to obtain a signed EIV Acknowledgement Form from the tenant during the recertification process. Recommendation: Project management should be reminded that obtaining all required documents is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will remind staff responsible for completing the recertifications to obtain all required documents. Total-Department of Housing and Urban Development - None, Non-compliance code: R

FINDING 2024-002: SECTION 202, Assistance Listing Number 14.157 Condition: One of the tenant files tested did not contain a signed EIV Acknowledgement Form, which acknowledges that the tenant received an EIV handbook from Project management. Recommendation: Project management should be reminded that obtaining all required documents is an important step in tenant management. Action taken: The Project agrees with the finding. Recertification staff obtained a signed copy of the EIV Acknowledgement Form in December 2024. If the Department of Housing and Urban Development has questions regarding these plans, please call Craig Ritter at 320-302-0192.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 202, Assistance Listing Number 14.157 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 - 12, $- N/A, Sample - 2, $ - N/A, Not in Compliance -1, $56, Questioned Costs - $56. 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 Questioned Costs - $56, Non-compliance code: R

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Eagle Court Apartments respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2023 The finding from the September 30, 2023 schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - NONE, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT - DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 202, Assistance Listing Number 14.157 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. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing. Project managers should be aware of the importance of computing the tenant's household income correctly. Action taken: The Project agrees with the finding. Tenant rent was recomputed in December 2023 and management will adjust the January 2024 HUD billing. If the Department of Housing and Urban Development has questions regarding this plan, please call Craig Ritter at 320-584-2423.