NHHI/ASI - SENIOR BLOOMINGTON, INC.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 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: Population - 47, Sample - 5, Not in Compliance - 1, $216; Questioned Costs - $216; Cause: There was an error in interpreting some information provided by the tenant during the recertification 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 will be recomputed and management will adjust a future monthly HUD billing. Total-Department of Housing and Urban Development- $216; Non-compliance code: R

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project overpaid management fees by $341 to the management company. Criteria: Management fees should be calculated according to HUD guidelines. Effect: The Project's management fee is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee charged by the management company was more than the calculated amount. No sample was tested. Population - $59,041; Sample - $59,041; Not in Compliance - $341; Questioned Costs - $341; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should reimburse the Project for the $341 overpayment. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fee as soon as possible. Total-Department of Housing and Urban Development - $341; Non-compliance code: J

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-003: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's replacement reserve cash balance was underfunded at September 30, 2025. Criteria: The management company failed to make the correct monthly deposit amount into the account. Effect: The replacement reserve cash balance was $88 less than it should be at September 30, 2025. Context: Activity in the replacement reserve account for the year ended September 30, 2025 was tested. No sample was tested. Questioned Costs - $88; Cause: The management company failed to increase the monthly deposit amount during the correct month. Recommendation: The Project should deposit $88 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $88 into the replacement reserve account. Total-Department of Housing and Urban Development - $88; Non-compliance code: N

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 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: Population - 50, Dollars - N/A; Sample - 5, Dollars - N/A; Not in Compliance - 1, $287; Questioned Costs - $287; Cause: There was an error in interpreting some information provided by the tenant during the recertification 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 will be recomputed and management will adjust a future monthly HUD billing. Total-Department of Housing and Urban Development - $287; Non-compliance code: R

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's replacement reserve cash balance was underfunded at September 30, 2024. Criteria: The management company failed to make the correct monthly deposits into the account. Effect: The replacement reserve cash balance was $142 less than it should be at September 30, 2024. Context: Activity in the replacement reserve account for the year ended September 30, 2024 was tested. No sample was tested. Questioned Costs - $142; Cause: The management company failed to increase the monthly deposit amount during the correct month. Recommendation: The Project should deposit $142 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $142 into the replacement reserve account. Questioned Costs - Department of Housing and Urban Development - $142; Non-compliance code - N

C. Findings and Questioned Costs - Major Federal Award Programs Audit DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Criteria: Household income should be computed accurately based on information provided by the tenant. Effect: There is no financial effect. Context: A sample of tenant files were selected for testing household income 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: Population - 49, Dollars - N/A, Sample - 5, Dollars - N/A, Not in Compliance - 1, $216, Questioned Costs - $216. Cause: There was an error in interpreting some information provided by the tenant during the recertification 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 will be recomputed and management will adjust a future monthly HUD billing. Total-Department of Housing and Urban Development - $216, Non-compliance code: R

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: Two of the tenant files tested did not contain copies of the tenant's social security card. Criteria: The tenant file should contain a copy of the tenant's social security card. Effect: There is no financial effect. Context: A sample of tenant files were selected to ensure that proper documentation was included. The test found that two of the files tested were not in compliance. The non-compliances did not have a financial effect. The details and results of the sample are as follows: Population - 49, Dollars - N/A, Sample - 5, Dollars - N/A, Not in Compliance - 2, Dollars - N/A, Questioned Costs - None. Cause: Copies of the tenant's social security cards were not obtained and placed into each tenant's file. Recommendation: The Project should obtain a copy of each tenant's social security card and place it in their tenant file. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. They will remind Project personnel of the importance of obtaining a copy of each tenant's social security card and placing it in the tenant file. Total-Department of Housing and Urban Development - $0, Non-compliance code: R

NHHI/ASI - SENIOR BLOOMINGTON, INC. HUD PROJECT NO. 092-EE101 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) Year Ended September 30, 2021 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2021-001: SECTION 202, CFDA 14.157 Condition: The Project overpaid management fees to the management company. Criteria: The management company should calculate management fees according to HUD guidelines. Effect: The Project's management fee expense is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee calculation had a mathematical error. The details and results of the sample are as follows: Number Dollars Population 1 $48,000 Sample 1 48,000 Not in Compliance 1 48,000 Questioned Costs $366 Cause: The management company made a mathematical error in computing management fees. Recommendation: The management company should recompute management fees, and make the necessary adjustments. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will recompute management fees for the year. Any overpayments will be refunded to the project. The finance team will be reminded to calculate management fees according to HUD guidelines. Questioned Costs - Department of Housing and Urban Development $366 Non-compliance code - J

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