VOA HICKORY KNOLL, INC (HICKORY KNOLL)

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 Criteria: The regulatory agreement (as amended) requires monthly deposits of $1,166. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $2,332. 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 $2,332. 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 $2,332. 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 $2,332. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: August 6, 2022 Response: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $2,332. 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: 2020-001 Criteria: The regulatory agreement (as amended) requires monthly deposits of $1,166. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $122. 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 $122. 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 $122. 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 $122. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: September 7, 2021 Response: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $122. 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: 2019-001 Criteria: The regulatory agreement (as amended) requires monthly deposits of $1,125.52. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $2,251. 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 was funded in the amount of $2,251 on August 24, 2020. 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 $2,251. 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 was funded in the amount of $2,251 on August 24, 2020. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: August 24, 2020 Response: Management agrees with the finding. The replacement reserve deficiency was funded in the amount of $2,251 on August 24, 2020. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.

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: This is not a repeat finding. Criteria: The regulatory agreement (as amended) requires monthly deposits of $1125.52. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $3,376. 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. Management has requested a retroactive suspension of deposits, but has not received a response from HUD. 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 $3,376. 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. Management has requested a retroactive suspension of deposits, but has not received a response from HUD. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: August 30, 2019 Response: Management agrees with the finding. Management has requested a retroactive suspension of deposits, but has not received a response from HUD. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.

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