Monterey Park Lions Club Senior Citizens Housing Corporation

FINDING NUMBER 2025-001: SUBMISSION OF THE AUDIT TO THE FEDERAL CLEARING HOUSE, UG Listing 14.155 and 14.195 Finding Resolution Status: - Cleared Information on Universe Population Size: - Not applicable Sample Size Information: - Not applicable Criteria: The audit package was submitted after the 9 month deadline. Statement of Condition: Management is responsible submitting the audit package to the Federal Audit Clearinghouse within 9 months of the fiscal year end. Effect: The Federal Audit Clearinghouse received the information late. It should be noted that the audit information was timely submitted to HUD in the REAC system. Cause: During the period the process for submitting the audit package to the Federal Audit Clearinghouse changed, which caused some confusion. Also, there was some miscommunication between the auditor and the auditee. Recommendation: In the future the audit package should be timely filed with the Federal Audit Clearinghouse. Non-compliance code: Z – Other. Amount of Questioned Costs: - None

FINDING NUMBER 2025-002: CASH BALANCES IN FINANCIAL INSTITUTIONS IN EXCESS OF FEDERAL INSURANCE LIMITS, UNIFORM GUIDANCE LISTING NUMBER 14.155 Information on Universe Population Size: - Not applicable Sample Size Information: - Not applicable Finding Resolution Status: - In Process Information on Universe Population Size: - Not applicable Sample Size Information: - Not applicable Noncompliance Information: - Cash balances in project operating bank accounts are in financial institutions in excess of federal insurance limits Criteria: - As of June 30, 2025 the operating cash balances in excess of the amount allowed by HUD is $1,624,311. Statement of Condition: - HUD requires that the Company maintain cash balances in financial institutions that are covered by insurance issued by the Federal Deposit Insurance Corporation (FDIC). The Company may maintain cash balances in financial institution in excess of the FDIC insurance limit if the Company verifies the bank’s debt rating meets certain requirements. Effect: - The Company has cash balances in excess of the amounts allowed by HUD. The $1,624,311 amount in excess of the FDIC limit is less than the surplus cash at the end of the year. Cause: - The Company accumulated excess cash in the operating account. Recommendation: - The Company should monitor the investments held by these financial institutions to ensure that HUD’s requirements are met. Non-compliance code: - Z – Other. Amount of Questioned Costs: - None

FINDING NUMBER 2025-003: SUBMISSION OF THE AUDIT INTO HUD’S REAC SYSTEM, UG Listing 14.155 and 14.195 Finding Resolution Status: - Cleared Statement of Condition: Management is responsible submitting the audit package into the HUD’s REAC system within 9 months of the fiscal year end. Criteria: The audit package was submitted after the 9 month deadline. Effect: HUD received the financial information late. Cause: Due to a change in personnel information was not timely given to the auditor. Recommendation: In the future the audit package should be timely filed with the Federal Audit Clearinghouse. Non-compliance code: Z – Other.

FINDING NUMBER 2024-001: SUBMISSION OF THE AUDIT TO THE FEDERAL CLEARING HOUSE, UNIFORM GUIDANCE LISTING NUMBER 14.155 Finding Resolution Status: - In Process Information on Universe Population Size: - Not applicable Sample Size Information: - Not applicable Criteria: The audit package was submitted after the 9 month deadline. Statement of Condition: Management is responsible submitting the audit package to the Federal Audit Clearinghouse within 9 months of the fiscal year end. Effect: The Federal Audit Clearinghouse received the information late. It should be noted that the audit information was timely submitted to HUD in the REAC system. Cause: During the period the process for submitting the audit package to the Federal Audit Clearinghouse changed, which caused some confusion. Also, there was some miscommunication between the auditor and the auditee. Recommendation: In the future the audit package should be timely filed with the Federal Audit Clearinghouse. Non-compliance code: Z – Other. Amount of Questioned Costs: - None

FINDING NUMBER 2024-002: CASH BALANCES IN FINANCIAL INSTITUTIONS IN EXCESS OF FEDERAL INSURANCE LIMITS, UNIFORM GUIDANCE LISTING NUMBER 14.155 Finding Resolution Status: - In Process Information on Universe Population Size: - Not applicable Sample Size Information: - Not applicable Noncompliance Information: - Cash balances in project operating bank accounts are in financial institutions in excess of federal insurance limits Criteria: - As of June 30, 2024 the operating cash balances in excess of the amount allowed by HUD is $956,218. Statement of Condition: - HUD requires that the Company maintain cash balances in financial institutions that are covered by insurance issued by the Federal Deposit Insurance Corporation (FDIC). The Company may maintain cash balances in financial institution in excess of the FDIC insurance limit if the Company verifies the bank’s debt rating meets certain requirements. Effect: - The Company has cash balances in excess of the amounts allowed by HUD. The $956,218 amount in excess of the FDIC limit is less than the surplus cash at the end of the year. Cause: - The Company accumulated excess cash in the operating account. Recommendation: - The Company should monitor the investments held by these financial institutions to ensure that HUD’s requirements are met. Non-compliance code: - Z – Other. Amount of Questioned Costs: - None

FINDING NUMBER 2019-001: PAYMENT OF REFINANCING COSTS, 14.155, SECTION 232 (F) INSURED LOAN Information on Universe Population Size: Statement of Condition: N/A Sample Size Information: N/A Statement of Condition: The Company used operating cash to pay for certain refinancing costs. These costs should be paid from Entity funds. The amount of refinancing costs paid from project operations was $75,711. Criteria: HUD does not allow refinancing cost to be paid from project operations. Effect: The operating has $75,711 less cash than it should have. Cause: Most of the costs were paid prior to the refinancing and operating cash was used. In the current year the check was written from the incorrect account. Recommendation: The Company should transfer $75,711 to the revenue operating cash account from the Entity cash account. Non-compliance code: G. ? Unauthorized loans from project operations Amount of questioned cost: $75,711

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