Mamou Elderly Housing Development CorporationNon-Profit

FINDING No. 2025-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Resolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2025. Sample Size Information: All replacement reserve deposits for the year ended March 31, 2025. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account. Statement of Condition: The Project underfunded the account by $341. Cause: An increase in funding was not implemented. Effect or Potential Effect: Deficiently funded reserve for replacement account. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion date: 04/30/2025 Response: Deposits are made to the replacement reserves on a monthly basis. A new checklist is being implemented to ensure the accuracy of the amounts and completeness of the transfers.

FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2024. Sample Size Information: All replacement reserve deposits for the year ended March 31, 2024. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account. Statement of Condition: The Project overfunded the account by $152. Cause: The Project made a payment in excess of funding requirements. Effect or Potential Effect: Overfunded reserve for replacement account. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion date: 03/31/2025 Response: Additional procedures have been implemented to ensure the correct amount of funding for replacement reserves is completed.

FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2021-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Resolved. Information on Universe Population Size: Sixty-eight tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires timely verification of current and initial income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: The Project did not perform and/or maintain the initial EIV for one tenant. Cause: The Project did not perform and/or maintain income verification. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: Management should verify initial tenant income through the EIV system in a timely manner and maintain verification in the tenant files. Response Indicator: Agree. Completion Date: 07/01/2020 Response: Management has provided staff will additional HUD training on proper procedures to ensure the timely verification of EIV reporting and file maintenance.

FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2020-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-two tenants. Sample Size Information: Sixty-two tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, tenants in properties subsidized through the Section 8 program must pay a minimum total tenant payment (TTP) of $25. In any property in which the utility allowance is greater than the $25, the full TTP is applied toward the utility allowance, and the amount the allowance exceeds $25 is reimbursed to the tenant as a utility reimbursement. Statement of Condition: The Project did not account for the $25 required TTP in providing utility reimbursements to applicable tenants. Cause: The Project remitted the entire utility allowance to applicable tenants. Effect or Potential Effect: Such costs are considered disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should implement procedures to ensure proper adherence to Section 8 program administration by either collecting the required $25 TTP absent a utility allowance or reducing utility reimbursements paid to applicable tenants by the required $25 TTP. Response Indicator: Agree. Completion Date: 3/31/2021 Response: Management has provided additional training on HUD guidelines inclusive of the required minimum rent for Section 8 subsidized units. We have also implemented a procedure where regional directors will make periodic site visits and file reviews.

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