CHRISTIAN HOUSING OF ST. JOSEPH, INC CHILTON PLACE APTS.

S3800-010 ? Finding Reference Number: 2022-001 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (AL # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Federal Award Identification Number and Year: N/A Pass-through Entity: None COVID-19 Identification: N/A Type of Compliance Finding: N - Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Award Finding 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: Repeat Finding Number 2021-001 S3800-020: Criteria HUD Handbook 4370.2 REV-1 ?Financial Operations and Accounting Procedures for Insured Multifamily Projects? Chapter 2-2 states in pertinent part that the books and records should be maintained in accordance with Generally Accepted Accounting Principles (GAAP). Section 9(d) of the Organization?s Regulatory Agreement states the books and records should be maintained in accordance with the requirements of HUD. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2022 federal award program, we noted that management was not reconciling the aged tenant accounts receivable subsidiary ledger to the general ledger. Also, escrow accounts including reserve for replacement were not reconciled to lender statement. The liabilities were also not accurately recorded at the year end. Management was not able to provide supporting documentation for payroll records. The books and records were not maintained in accordance with GAAP. S3800-032: Cause The Organization?s books are maintained in QuickBooks, whereas tenant rental transactions are recorded at a detailed level in a different software and the detail information is not reconciled to the general ledger. Management was not reconciling other general ledger balances to supporting documentation. Management?s monthly closing process is inadequate. S3800-033: Effect or Potential Effect The Organization is not in compliance with requirement to maintain books and records according to GAAP. S3800-035: Auditor Non-Compliance Code S ? Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agreed with auditor?s finding. S3800-050: Context Management was not reconciling the financial statements to source documents, including reports from the software used to process tenant rental activities and payroll records. S3800-080: Recommendation As part of the month-end closing process, management should ensure that the accounts reconcile to source documents, including reports from the software used to process tenant rental activities and payroll records. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date September 30, 2022 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2022-002 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (AL # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Federal Award Identification Number and Year: N/A Pass-through Entity: None COVID-19 Identification: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Award Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number N/A S3800-020: Criteria HUD Handbook 4370.2 REV-1 ?Financial Operations and Accounting Procedures for Insured Multifamily Projects? Chapter 2-2 states in pertinent part that the books and records should be maintained in accordance with Generally Accepted Accounting Principles. Section 11(e) of the Organization?s Regulatory Agreement states the books and records should be maintained in accordance with requirement of HUD. A critical component of ensuring the books and records are maintained in accordance with GAAP is that an Organization has established an internal control process that produces reliable financial reporting. One of the key components of internal control is the ?control environment.? And one of the key elements of the ?control environment? is that those charged with governance (the Board of Directors; hereinafter the Board) exercise oversight of the development and performance of internal control over financial reporting. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2022 financial statements, we noted that the Board did not exercise oversight of management nor monitor the Organization?s financial performance or compliance with applicable laws and regulations. S3800-032: Cause The Board did not have board meetings nor receive periodic financial reports from management. S3800-033: Effect or Potential Effect Due to the Boards lack of oversight/monitoring, management could misappropriate assets without fear of detection by the Board and the Organization could be noncompliant with applicable laws and regulations without the Board?s knowledge. S3800-035: Auditor Non-Compliance Code S ? Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agreed with the auditor?s finding S3800-050: Context The Board failed to exercise is responsibility to provide oversight of and accountability to the Organization. S3800-080: Recommendation The Board should meet on a periodic basis, recommend no less frequently than quarterly and at these meeting they should review the Organization?s key performance indicators, both financial and nonfinancial. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date December 31, 2022 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2021-001 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: N - Special Tests and Provisions S3800-015: Type of Finding Federal Awards and Financial Reporting Finding 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: Repeat Finding Number N/A S3800-020: Criteria The regulatory agreement requires that the Organization?s books and records are maintained in accordance with GAAP. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2021 federal award program, we noted that management was not reconciling the aged tenant accounts receivable subsidiary ledger to the general ledger. Also, escrow accounts including reserve for replacement were not reconciled to lender statement. The liabilities were also not completely recorded at the year end. S3800-032: Cause The Organization books are maintained in QuickBooks, whereas tenant rental transactions are recorded at a detail level in a different software and the detail information is not reconciled to the general ledger. Management was not reconciling the financial statements to source documents. S3800-033: Effect or Potential Effect The Organization is not in compliance with requirement to maintain books and records according to GAAP. S3800-035: Auditor Non-Compliance Code S ? Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agreed with auditor?s finding. S3800-050: Context Management was not reconciling the financial statements to source documents including reports from the software used to process tenant rental activities. S3800-080: Recommendation As part of the month-end closing process, management should ensure that the accounts reconcile to source documents including reports from the software used to process tenant rental activities. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date September 30, 2021 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2021-002 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number 2020-001 S3800-020: Criteria The regulatory agreement allow the Organization to pay a bookkeeping fee that was approved by HUD on HUD Form 9839-B, Project Owner?s & Management Agent?s Certification for Multifamily Housing Projects for Identity-of-Interest or Independent Management Agents (HUD Form 9839-B). S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2021 federal award program, we noted that the Organization was charged the bookkeeping fee of $150 per month by the management company. HUD Form 9839-B allowed $100 per month as the bookkeeping fee. S3800-032: Cause The Organization was inadvertently charged a bookkeeping fee of $150 per month instead of $100 per month. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement related to bookkeeping fees allowed to be charged by the management company. S3800-035: Auditor Non-Compliance Code Z ? Other S3800-040: Questioned Costs $600 S3800-045: Reporting Views of Responsible Officials The Organization agreed with auditors? finding. S3800-050: Context The Organization paid $150 per month for bookkeeping services during the year ended March 31, 2021 instead of $100 allowed by HUD Form 9839-B. S3800-080: Recommendation The management company should reimburse the Organization for $3,000, the cumulative overpaid bookkeeping fees as of March 31, 2021. The Organization should pay no more than the approved bookkeeping fee going forward. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date September 30, 2021 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2021-003 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: I ? Procurement, Suspension, and Debarment S3800-015: Type of Finding Federal Award Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number 2020-004 S3800-020: Criteria Nonfederal entities must follow the procurement standards set out in 2 CFR sections 200.318 through 200.326. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2021 financial statements, we noted that the procurement policy does not comply with the federal requirements. S3800-032: Cause The Organization?s procurement policy lacks all the required elements. The procurement policy requirements changed significantly under Uniform Guidance. S3800-033: Effect or Potential Effect The Organization was not in compliance with the federal requirements in relation to the procurement policy. S3800-035: Auditor Noncompliance Code Z ? Other S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials The Organization will adopt a policy which complies with all applicable federal requirements. The Procurement requirements changed significantly under Uniform Guidance. S3800-050: Context The Organization?s Procurement policy does not include all applicable federal requirements. S3800-080: Recommendation The Organization should adopt a policy which complies with all applicable federal requirements. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2021 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2020-001 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number 2019-003 S3800-020: Criteria The regulatory agreement requires the Organization to charge the bookkeeping fee that was approved by HUD on HUD Form 9839-B, Project Owner?s & Management Agent?s Certification for Multifamily Housing Projects for Identity-of-Interest or Independent Management Agents (HUD Form 9839-B). S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2020 federal award program, we noted that the Organization was charged the bookkeeping fee of $200 per month by the management company. HUD Form 9839-B allowed $100 per month as the bookkeeping fee. S3800-032: Cause The Organization was inadvertently charged a bookkeeping fee of $200 per month instead of $100 per month. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement related to bookkeeping fees allowed to be charged by the management company. S3800-035: Auditor Non-Compliance Code Z ? Other S3800-040: Questioned Costs $1,200 S3800-045: Reporting Views of Responsible Officials The Organization agreed with auditors? finding. S3800-050: Context The Organization paid $200 per month for bookkeeping services during the year ended March 31, 2020 instead of $100 allowed by HUD Form 9839-B. S3800-080: Recommendation The Organization should get a refund of $1,200 from the management company. The Organization should pay $100 per month for bookkeeping services going forward. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date September 30, 2020 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2020-002 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number N/A S3800-020: Criteria The regulatory agreement requires that the Organization deposit any surplus cash into the residual receipts account within sixty days after the fiscal year end. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2020 federal award program, we noted that the Organization failed to deposit the fiscal year 2019 surplus cash into the residual receipts account within sixty days after the fiscal year end. S3800-032: Cause The Organization overlooked depositing the fiscal year 2019 surplus cash into the residual receipts account within sixty days after the fiscal year end. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement related to deposit of surplus cash into the residual receipts account. S3800-035: Auditor Non-Compliance Code B ? Failure to Make Required Residual Receipts Deposits S3800-040: Questioned Costs $11,171 S3800-045: Reporting Views of Responsible Officials The Organization agreed with auditors? finding. S3800-050: Context The Organization was required to deposit surplus cash into the residual receipts account within sixty days after the fiscal year end. S3800-080: Recommendation The Organization should establish a process to ensure timely deposit of surplus cash into the residual receipts account after the fiscal year end. The Organization should deposit $11,171 into the residual receipt account as soon as possible. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date September 30, 2020 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2020-003 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number N/A S3800-020: Criteria The escrow agreement with HUD requires the Organization to set aside funds to remedy any defect in the repair work arising within twelve months from the completion of repairs. These funds will be released after prior written approval form HUD upon the latter of (i) fifteen months from the completion of repairs, or (ii) at such time as the latent defects have been corrected to the satisfaction of HUD. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2020 major federal program, we noted that the Organization withdrew $3,192 from latent defects escrow without the written approval form HUD. S3800-032: Cause The Organization inadvertently failed to get the written approval from HUD for withdrawal from latent defects escrow account. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirement related to withdrawal from escrow account. S3800-035: Auditor Non-Compliance Code Z ? Other S3800-040: Questioned Costs $3,192 S3800-045: Reporting Views of Responsible Officials The Organization agreed with auditors? finding. S3800-050: Context The Organization withdrew $3,192 from latent defects escrow without written approval from HUD. S3800-080: Recommendation The Organization should get the approval from HUD for the withdrawal as soon as possible. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date September 30, 2020 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2020-004 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: I ? Procurement, Suspension, and Debarment S3800-015: Type of Finding Federal Award Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number 2019-001 S3800-020: Criteria Uniform Guidance requires the Organization to have a written procurement policy in accordance with applicable federal requirements. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2020 financial statements, we noted that the procurement policy does not comply with the federal requirements. S3800-032: Cause The Organization?s procurement policy lacks all the required elements. The procurement policy requirements changed significantly under Uniform Guidance. S3800-033: Effect or Potential Effect The Organization was not in compliance with the federal requirements in relation to the procurement policy. S3800-035: Auditor Noncompliance Code Z ? Other S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials The Organization will adopt a policy which complies with all applicable federal requirements. The Procurement requirements changed significantly under Uniform Guidance. S3800-050: Context The Organization?s Procurement policy does not include all applicable federal requirements. S3800-080: Recommendation The Organization should adopt a policy which complies with all applicable federal requirements. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2020 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2019-001 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: I ? Procurement, Suspension, and Debarment S3800-015: Type of Finding Federal Award Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number N/A S3800-020: Criteria Uniform Guidance requires the Organization to have a written procurement policy in accordance with applicable federal requirements. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2019 financial statements, we noted that the procurement policy does not comply with the federal requirements. S3800-032: Cause The Organization?s procurement policy lacks all the required elements. The procurement policy requirements changed significantly under Uniform Guidance. S3800-033: Effect or Potential Effect The Organization was not in compliance with the federal requirements in relation to the procurement policy. S3800-035: Auditor Noncompliance Code Z ? Other S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials The Organization will adopt a policy which complies with all applicable federal requirements. The Procurement requirements changed significantly under Uniform Guidance. S3800-050: Context The Organization?s Procurement policy does not include all applicable federal requirements. S3800-080: Recommendation The Organization should adopt a policy which complies with all applicable federal requirements. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2019 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2019-002 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Award Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number N/A S3800-020: Criteria The regulatory agreement with HUD requires that the Organization deposit a monthly amount into the reserve for replacement account as determined by HUD. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2019 major federal program, we noted that the Organization did not deposit the correct amount into the reserve for replacement account. The organization was required to deposit $2,427 monthly into the reserve for replacement account effective March 1, 2018 but the deposits were made for $2,375. S3800-032: Cause The Organization overlooked depositing the correct monthly amount into the reserve for replacement account. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirement related to reserve for replacement. S3800-035: Auditor Noncompliance Code N ? Reserve for replacement deposits S3800-040: Questioned Costs $624 S3800-045: Reporting Views of Responsible Officials The Organization agreed with auditors? finding. S3800-050: Context The Organization did not deposit the correct amount into the reserve for replacement account. S3800-080: Recommendation The Organization should fund the reserve for replacement account by $624 as soon as possible. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 30, 2019 S3800-150: Response See Corrective Action Plan

S3800-010 ? Finding Reference Number: 2019-003 Program Information S3800-011: Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 207/223f (CFDA # 14.155) Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: None Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Repeat Finding Number N/A S3800-020: Criteria The regulatory agreement requires the Organization to charge the bookkeeping fee that was approved by HUD on HUD Form 9839-B, Project Owner?s & Management Agent?s Certification for Multifamily Housing Projects for Identity-of-Interest or Independent Management Agents (HUD Form 9839-B). S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2019 federal award program, we noted that the Organization was charged the bookkeeping fee of $200 per month by the management company. HUD Form 9839-B allowed $100 per month as the bookkeeping fee. S3800-032: Cause The Organization was inadvertently charged a bookkeeping fee of $200 per month instead of $100 per month. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement related to bookkeeping fees allowed to be charged by the management company. S3800-035: Auditor Non-Compliance Code J ? Unauthorized management fees S3800-040: Questioned Costs $1,200 S3800-045: Reporting Views of Responsible Officials The Organization agreed with auditors? finding. S3800-050: Context The Organization paid $200 per month for bookkeeping services during the year ended March 31, 2019 instead of $100 allowed by HUD Form 9839-B. S3800-080: Recommendation The Organization should get a refund of $1,200 from the management company. The Organization should pay $100 per month for bookkeeping services going forward. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date September 30, 2019 S3800-150: Response See Corrective Action Plan

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION