EL REDENTOR APARTMENTS II, INC. (EL REDENTOR APTS II)

Required monthly deposits to the replacment reserve are deficient in the amount of $15,000.

HUD APPROVAL WAS NOT GRANTED FOR DISBURSEMENTS FROM THE RESTRICTED ACCOUNTS.

Required monthly deposits to the replacment reserve are deficient in the amount of $18,000.

HUD APPROVAL WAS NOT GRANTED FOR DISBURSEMENTS FROM THE RESTRICTED ACCOUNTS.

Required monthly deposits to the replacement reserve are deficient in the amount of $9,000.

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: Prior year finding reference: 2021-001, 2019-001, 2018-001, and 2011-001 Criteria: The regulatory agreement (as amended) requires monthly deposits of $1,500. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $5,975. Cause: Procedures in place to ensure that deposits are made were not followed. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: N Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $5,975. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Context: Required monthly deposits to the replacement reserve are deficient in the amount of $5,975. Recommendation: Management should compare the required annual amount to the monthly deposits made to determine if the correct amount is deposited. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $5,975. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: September 9, 2022 Response: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $5,975. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.

Finding Reference Number: 2021-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: Prior year finding reference: 2011-001, 2018-001, and 2019-001 Criteria: The regulatory agreement (as amended) requires monthly deposits of $1,500. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $4,500. Cause: Procedures in place to ensure that deposits are made were not followed. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: N Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $4,500. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Context: Required monthly deposits to the replacement reserve are deficient in the amount of $4,500. Recommendation: Management should compare the required annual amount to the monthly deposits made to determine if the correct amount is deposited. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $4,500. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: September 20, 2021 Response: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $4,500. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.

Finding Reference Number: 2020-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: Prior year finding reference: 2019-003 Criteria: Project funds may be used only for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Statement of Condition: Project funds were used to pay expenses of another project. Cause: The project accidently paid the wrong invoice. Effect or Potential Effect: There is a receivable due from another project. Auditor Non-Compliance Code: G Questioned Costs: $544 Reporting Views of Responsible Officials: Management agrees with the finding. Context: Project funds were used to pay expenses of another project. Recommendation: The project should be reimbursed. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The funds will be reimbursed in the amount of $544. Response Indicator: Agree Completion Date: September 11, 2020 Response: Management agrees with the finding. The funds will be reimbursed in the amount of $544.

Finding Reference Number: 2019-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: Prior year finding reference: 2011-001 and 2018-001 Criteria: The regulatory agreement (as amended) requires monthly deposits of $1,500. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $6,000. Cause: Procedures in place to ensure that deposits are made were not followed. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: N Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $6,000. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Context: Required monthly deposits to the replacement reserve are deficient in the amount of $6,000. Recommendation: Management should compare the required annual amount to the monthly deposits made to determine if the correct amount is deposited. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $6,000. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: September 18, 2019 Response: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $6,000. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.

Finding Reference Number: 2019-002 Type of Finding: FA Finding Resolution Status: Resolved Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: The regulatory agreement requires that the balance in the security deposit account cannot be less than the security deposit obligation. Statement of Condition: The security deposit account is not fully funded. Cause: Procedures in place to ensure that tenant security deposits are fully funded were not followed. Effect or Potential Effect: The security deposits account does not have sufficient funds to make refunds to all tenants. Auditor Non-Compliance Code: M Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The security deposit deficiency was funded on October 15, 2018 in the amount of $4,000. Management will ensure that the security deposits are properly funded in the future. Context: The security deposit account is not fully funded. Recommendation: Management should compare the reconciled cash account to the security deposit listing to ensure that there is enough cash to refund all tenant deposits. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The security deposit deficiency was funded on October 15, 2018 in the amount of $4,000. Management will ensure that the security deposits are properly funded in the future. Response Indicator: Agree Completion Date: October 15, 2018 Response: Management agrees with the finding. The security deposit deficiency was funded on October 15, 2018 in the amount of $4,000. Management will ensure that the security deposits are properly funded in the future.

Finding Reference Number: 2019-003 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Project funds may be used only for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Statement of Condition: Project funds were used to pay expenses of another project. Cause: The project accidently paid the wrong invoice. Effect or Potential Effect: There is a receivable due from another project. Auditor Non-Compliance Code: G Questioned Costs: $1,093 Reporting Views of Responsible Officials: Management agrees with the finding. Context: Project funds were used to pay expenses of another project. Recommendation: The project should be reimbursed. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The funds will be reimbursed to the Project in the amount of $1,093. Response Indicator: Agree Completion Date: September 18, 2019 Response: Management agrees with the finding. The funds will be reimbursed to the Project in the amount of $1,093.

GSA_MIGRATION