Wofford Park, Inc.

U.S. Department of Housing and Urban Development Program Name: Section 811 Supportive Housing for Persons with Disabilities Federal Assistance Listing Number 14.181 Grant Number: 065-HD029-CA Finding 2022-001: Other Finding Criteria In accordance with the Uniform Guidance, the project?s annual single audit reporting packages are required to be submitted in the Federal Audit Clearinghouse website in a timely manner, which is the earlier of 30 days after receipt of the auditors? report or 9 months after the project?s fiscal year end. Condition The project has not filed their prior year annual single audit reporting package in the Federal Audit Clearinghouse website. Effect The required submission of the project?s annual single audit reporting package has not been filed. Cause The cause was not determined. Questioned Costs N/A. Context The project engaged its auditors to file its annual single audit reporting package in the Federal Audit Clearinghouse website. However, the filing has not been completed. Repeat Finding No. Recommendation Management should ensure that the required submission of the project?s annual single audit reporting packages are filed timely. Auditor Noncompliance Code Z ? other; Other Finding. Finding Resolution Status Unresolved. Reporting Views of Responsible Officials Management will ensure that they submit the project?s annual single audit reporting package in the Federal Audit Clearinghouse website.

U.S. Department of Housing and Urban Development Program Name: Section 811 Capital Advance Program CFDA # 14.181 Grant Number: 065-HD029-CA Finding 2020-001 Special Test and Provisions ? Replacement Reserve Account Criteria In accordance with 24 CFR section 891.405, an amount as required by HUD will be deposited monthly in the reserve fund. Condition In August of 2019, the replacement reserve account was not funded. Effect The replacement reserve account was not properly funded. Cause Procedures relating to the funding of HUD-required accounts were not followed. Recommendation Management should ensure that the procedures are followed to make any required deposits to HUD-required bank accounts. Reporting Views of Responsible Officials Management will ensure that the deposits of funds to the replacement reserve account will be made timely.

Findings and Questioned Costs ? Major Federal Award Program Audit U.S. Department of Housing and Urban Development Program Name: Section 811 Capital Advance Program CFDA # 14.181 Grant Number: 065-HD029-CA Finding 2020-002 Special Test and Provisions ? Replacement Reserve, Residual Receipts, and Security Deposit Accounts Criteria In accordance with 24 CFR sections 891.405, 891.400, and 891.435, respectively, withdrawals from these accounts may only be made with the approval of HUD, or in the case of security deposits, as a reimbursement for any unpaid household amounts owed under the lease or refund to the household upon termination of the lease. Condition Bank service charges were paid from each of the above listed bank accounts. Effect Unauthorized expenses were charged to the above listed bank accounts in the net amounts of $113, $88, and $13, respectively. Cause Procedures relating to the authorization of expenditures were not followed. Recommendation Management should ensure that the procedures are followed to properly authorize expenditures. Reporting Views of Responsible Officials Management will ensure that the charges are refunded and that procedures are put into place to ensure that future transactions are properly authorized.

Findings and Questioned Costs ? Major Federal Award Program Audit U.S. Department of Housing and Urban Development Program Name: Section 811 Capital Advance Program CFDA # 14.181 Grant Number: 065-HD029-CA Finding 2020-003 Special Test and Provisions ? Security Deposit Account Criteria In accordance with 24 CFR section 891.435, the amount of the security deposit bank account must at all times equal (or exceed) the total amount collected from the current tenants. Condition Due to the bank service charges mentioned in finding 2020-002, the security deposit bank account did not equal or exceed the total amounts collected from the tenants. Effect The security deposit bank account was underfunded. Cause Procedures relating to the funding of HUD-required bank accounts were not followed. Recommendation Management should ensure that the procedures are followed to ensure that HUD-required bank accounts are properly funded. Reporting Views of Responsible Officials Management will ensure that the charges are refunded and that procedures are put into place to ensure that the bank account is properly funded.

Findings and Questioned Costs ? Major Federal Award Program Audit U.S. Department of Housing and Urban Development Program Name: Section 811 Capital Advance Program CFDA # 14.181 Grant Number: 065-HD029-CA Finding 2020-004 Special Test and Provisions ? Security Deposit Account Criteria In accordance with HUD?s Management Agent Handbook (4381.5) Chapter 3, owners may agree to pay special management fees if a project has special needs or problems. The conditions for special management fees should be temporary in nature. Condition In the Project Owner?s/Management Agent?s Certification dated May 3, 2012, the request for special fees is for ?extra work involved in taking over a property in financial distress and experiencing negative cash flow. It is our goal to resolve the operating shortfall within 16 months.? Effect Special management fees are being charged outside of the 16-month timeframe mentioned above. Cause Additional management fees were improperly charged in the amount of $3,600. Recommendation Management should ensure that the procedures are followed to ensure that management fees are charged in accordance with the agreement authorized by HUD. Reporting Views of Responsible Officials Management will ensure that expenditures are properly authorized.