CORPUS CHRISTI SUPPORTIVE HOUSING, INC

CORPUS CHRISTI SUPPORTIVE HOUSING, INC. HUD PROJECT NO. 115-HD022-WDD SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2019 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2019-001: SECTION 811, CFDA 14.181 Condition: One of the tenant files tested contained a mathematical error in computing the tenant's medical expense deduction in the process of computing the tenant share of monthly rent. Criteria: The medical expense deduction should be computed accurately based on information provided by the tenant. Effect: There is no financial effect. Context: A sample of tenant files was selected for testing the medical expense deduction in the process of computing the tenant share of monthly rent. The test found a calculation that was not in compliance. The non-compliance did not have a financial effect. The details and results of the sample are as follows: Number Dollars Population 24 N/A Sample 3 N/A Not in Compliance 1 N/A Questioned Costs None Cause: There was an error in interpreting some information provided by the tenant during the certification process. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Tenant rent was recomputed in January 2020. No adjustment of future monthly HUD billings is necessary. Total-Department of Housing and Urban Development $- Non-compliance code: R

CORPUS CHRISTI SUPPORTIVE HOUSING, INC. HUD PROJECT NO. 115-HD022-WDD CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2019 Corpus Christi Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2019: Name and address of independent public accounting firm: Hinrichs & Associates, LTD. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: December 31, 2019 The finding from the December 31, 2019 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT NONE FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2019-001: SECTION 811, CFDA 14.181 Mathematical error in computing the tenant's medical expense deduction in the process of computing the tenant share of monthly rent. Recommendation: Management concurs with the finding and the auditor's recommendation is to make the project manager aware of the importance of computing the tenant's medical expense deduction accurately. Action taken: Tenant rent will be recomputed and management will adjust a future monthly HUD billing if necessary. The Project successfully completed the corrective action as of January 31, 2020. If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at 651-645-7271.