THE VILLAGE OF OAKMAN MANOR

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - Supportive Housing for the Elderly - Project Rental Assistance Contract and Capital Advance Finding Resolution Status - In process Information on Universe and Population Size - The total population size is the total number of units of 55. Sample Size Information - Three out of the six sample size Identification of Repeat Finding and Finding Reference Number - N/A Criteria - HUD requires tenant files to utilize the use of EIV, and the Organization should have controls in place to ensure EIV is properly being utilized. Statement of Condition - The Organization failed to maintain the proper EIV documentation. Cause - The Organization failed to maintain the support of EIV for three of the six selected samples. Effect or Potential Effect - The EIV was not properly kept in the tenant file. Auditor Noncompliance Code - S - Internal control deficiency Reporting Views of Responsible Officials - Management agrees with the finding as reported. Recommendation - The Organization should implement internal controls to ensure that the EIV system is properly utilized and saved in the tenant files. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations - Management agrees with the finding as reported and has taken measures to improve internal control over compliance by ensuring the EIV system will be properly utilized. Response Indicator - Agree Response - Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance by ensuring the EIV system will be properly utilized.

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program – Supportive Housing for the Elderly - Project Rental Assistance Contract and Advance (ALN #14.157) Finding Resolution Status - In progress Information on Universe and Population Size – Five withdrawals from replacement reserve Sample Size Information -100 percent of withdrawals for HUD approval and 10 percent or a minimum of two replacement reserve withdrawals to test for proper expenditure of requested funds Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Organization should have internal controls in place to reconcile the replacement reserve account to ensure all withdrawals have HUD approval and all required monthly deposits or repayments of HUD-approved loans are made as required by the Regulatory Agreement. Statement of Condition - There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the reserve account had proper HUD approval, all required monthly were made, and HUD-approved loans were repaid timely. The Organization received approval from HUD for a $27,743 loan advance to be repaid to the replacement reserve by January 31, 2023; however, the loan was not repaid until April 17, 2023. Cause - The Organization failed to perform a reconciliation of the replacement reserve account in a timely manner. Effect or Potential Effect - The lack of reconciliation procedures could have led to the replacement reserve account being underfunded during the current year until the loan was repaid on April 17, 2023. Auditor Noncompliance Code - S - Internal control deficiency and N - Reserve for replacement deposits Reporting Views of Responsible Officials - Management agrees with the finding as reported. Recommendation - The Organization should implement internal controls to properly reconcile the replacement reserve account in a timely manner. Response Indicator – Agree Completion Date - April 17, 2023 Response - Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance. Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the S27.743 advance to the replacement reserve account on April 17, 2023.