Wingo Elderly Housing Corporation d/b/a Locust Ridge ApartmentsNon-Profit

Surplus cash was not deposited into a residual receipts account within 90 days of year-end. Additionally, the full deposit was not able to be deposited due to an insufficient cash balance.

The audited financial statements for the year ended December 31, 2024 were not filed into the REAC system within 90 days after the year end.

Surplus cash was not deposited into a residual receipts account within 90 days of year-end.

The audited financial statements for the period ended December 31, 2023 were not filed into the REAC system within 90 days after the period-end.

S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance 14.157 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Unresolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2020-01 S3800-020 Criteria ? In accordance with the Regulatory Agreement, surplus cash is required to be deposited into a residual receipts account within 90 days of year-end. S3800-030 Statement of Condition ? Surplus cash was not deposited into a residual receipts account within 90 days of year-end. S3800-032 Cause ? Due to the low cash balance, management was not able to deposit the full amount required from the 2019 surplus cash calculation. S3800-033 Effect or Potential Effect ? The Project is in violation of the Regulatory Agreement. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $1,370 S3800-045 Reporting Views of Responsible Officials ? During 2021 management deposited $2,755 in relation to the 2020 residual receipt deposit requirement, but due to the low cash balance was not able to deposit the required amount for 2022. S3800-050 Context ? Residual receipts deposit made in May 2022 is lower than the required amount. S3800-080 Recommendation ? Management should ensure surplus cash is calculated in a timely matter in order to make any required deposit to the residual receipts account. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Due to the low cash balance, management was not able to deposit the full amount required from the 2021 surplus cash calculation. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? N/A S3800-150 Response ? Management will deposit required amounts.

S3800-010 Finding Reference Number ? 2021-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance 14.157 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Unresolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2020-01 S3800-020 Criteria ? In accordance with the Regulatory Agreement, surplus cash is required to be deposited into a residual receipts account within 90 days of year-end. S3800-030 Statement of Condition ? Surplus cash was not deposited into a residual receipts account within 90 days of year-end. S3800-032 Cause ? Due to the low cash balance, management was not able to deposit the full amount required from the 2019 surplus cash calculation. S3800-033 Effect or Potential Effect ? The Project is in violation of the Regulatory Agreement. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $2,755 S3800-045 Reporting Views of Responsible Officials ? Management deposited $300 during 2021 but due to the low cash balance was not able to deposit the required amount. S3800-050 Context ? Residual receipts deposit made in May 2021 is lower than the required amount. S3800-080 Recommendation ? Management should ensure surplus cash is calculated in a timely matter in order to make any required deposit to the residual receipts account. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Due to the low cash balance, management was not able to deposit the full amount required from the 2019 surplus cash calculation. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? N/A S3800-150 Response ? Management will deposit required amounts.

S3800-010 Finding Reference Number ? 2020-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance 14.157 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Unresolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-020 Criteria ? In accordance with the Regulatory Agreement, surplus cash is required to be deposited into a residual receipts account within 90 days of year-end. S3800-030 Statement of Condition ? Surplus cash was not deposited into a residual receipts account within 90 days of year-end. S3800-032 Cause ? Management was unaware of the requirement for the prior year audit. S3800-033 Effect or Potential Effect ? The Project is in violation of the Regulatory Agreement. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $3,055 S3800-045 Reporting Views of Responsible Officials ? The new management company during the prior year was unable to obtain accounting information from the prior management company in a timely manner to calculate surplus cash and make the residual receipts deposit as required. S3800-050 Context ? The management company changed during the prior year, and the new management company was unable to obtain accounting information from the old management company prior to year-end. S3800-080 Recommendation ? Management should ensure surplus cash is calculated in a timely matter in order to make any required deposit to the residual receipts account.

S3800-010 Finding Reference Number ? 2019-001 S3800-011 Title and CFDA Number of Federal Program ? 14.157 Section 202 Capital Advance S3800-015 Type of Finding ?Federal Award S3800-016 Finding Resolution Status ?Unresolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with the Regulatory Agreement between the Project and HUD, the Project is required to make monthly deposits into the reserve for replacements. S3800-030 Statement of Condition ? Management only made 11 of 12 deposits, and the deposits were not in the amount required. S3800-032 Cause ? The Project changed management companies in a prior year, and the new management company did not receive the documentation needed to know the monthly deposit amounts. S3800-033 Effect or Potential Effect ? The reserve for replacements is underfunded, and the Project is in violation of its Regulatory Agreement. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $3,657 S3800-045 Reporting Views of Responsible Officials ? Management did not receive the documentation needed to know the reserve for replacement monthly deposit amounts within the fiscal year. S3800-050 Context ? Reserve for replacement deposits made were lower than the required amount. S3800-080 Recommendation ? Management should immediately deposit the $3,657 of delinquent deposits from the year ended December 31, 2019 into the reserve for replacement and continue to make the required deposits going forward. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Due to a change in management and the Project not being audited in the prior year, management was unaware of the required deposit amounts. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2020 S3800-150 Response ? Management will make the required deposits.

S3800-010 Finding Reference Number ? 2019-002 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance 14.157 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Unresolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? The replacement reserve funds must be held in an interest-bearing account. S3800-030 Statement of Condition ? The replacement reserve fund is not an interest-bearing account. S3800-032 Cause ? Management was unaware of the requirement. S3800-033 Effect or Potential Effect ? The Project is in violation with HUD regulations. S3800-035 Auditor Non-Compliance Code ? O S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management was unaware of the requirement and will make the correction. S3800-050 Context ? The replacement reserve account is not an interest-bearing account. S3800-080 Recommendation ? Management should transfer the replacement reserve funds to an interest-bearing account. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management was unaware of the requirement and will transfer the replacement reserve funds to an interest-bearing account. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2020 S3800-150 Response ? Management will transfer the replacement reserve funds to an interestbearing account.

S3800-010 Finding Reference Number ? 2019-003 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance 14.157 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? 5 tenants S3800-018 Sample Size Information ? 1 tenant S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? Security deposits paid by tenants must be refunded within 60 days of the date of move out. S3800-030 Statement of Condition ? The security deposit for the sample tenant move-out was not refunded within 60 days of the date of move out. S3800-032 Cause ? Unknown S3800-033 Effect or Potential Effect ? The Project is in violation with HUD regulations. S3800-035 Auditor Non-Compliance Code ? M S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management has subsequently refunded the security deposit. S3800-050 Context ? The tenant sampled moved out on May 29, 2019. The security deposit was not refunded until November 2019. S3800-080 Recommendation ? Management should implement policies and procedures to ensure security deposits get refunded in a timely manner. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will implement policies and procedures to ensure security deposits get refunded in a timely manner. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? November 30, 2019 S3800-150 Response ? Management will implement policies and procedures to ensure security deposits get refunded in a timely manner.