Mt View Estates, Inc

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Current Year Reference Number 2020-1 Questioned Costs None Finding Title and CFDA Number of Federal Program - Supportive Housing for the Elderly - Project Rental Assistance Contract and Capital Advance (CFDA # 14.181) Information on Universe and Population Size ? The Organization had surplus cash as of December 31, 2020. Sample Size Information - Sample size for compliance was the Organization?s federal program. Noncompliance Information - The Organization was required to deposit surplus cash of $881 within 60 days of year end in accordance with the OMB Compliance Supplement. Condition - The Organization deposited prior year surplus cash of $881 on September 23, 2021, which was after the deadline stated in the OMB Compliance Supplement. Criteria - The Organization should deposit surplus cash within the timeframe specified in the OMB Compliance Supplement. Cause - The Organization failed to monitor the cash requirements of the residual receipts account as specified by the OMB Compliance Supplement. Effect or Potential Effect - The residual receipts account was not funded in accordance with the OMB Compliance Supplement. Recommendation - Surplus cash deposit amounts must be Deposited within the specified time frame required by the OMB Compliance Supplement. Views of Responsible Officials and Planned Corrective Actions ? Management is aware of the surplus deposit requirement and agrees with the finding. Noncompliance has been addressed by depositing surplus cash on September 23, 2021.

CORRECTIVE ACTION PLAN Name of auditee: Mt. View Estates, Inc. HUD auditee identification number: 082HD109 Name of audit firm: Porterfield and Company CPA, PLLC Period covered by the audit: January 1, 2020 through December 31, 2020 CAP prepared by: Name: Neal Gibson Position: Executive Director of Northwest Regional Housing Authority (management agent) Telephone number: (870) 741-5522 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2020-1 a. Comments on the Finding and Each Recommendation: Mt. View Estates, Inc. is aware of the surplus cash requirement. We agree with the finding that $881 should have been deposited in the residual receipts account within 60 days of year end. We agree with the recommendation that we must monitor our compliance with this requirement and make the deposits timely. b. Action Taken on the Finding Mt. View Estates, Inc. made the required deposit on September 23, 2021. Staff has received additional training to monitor compliance with the requirement.