Golden Years Senior Apartments, inc. 122-EE-078-WAH-NPNon-Profit

Finding reference number: #2025-001 CFDA title and number (Federal award identification number and year): Supportive Housing for the Elderly Section No. 14.157 (122-EE078-WAH-NP and 1996) Auditor non-compliance code: B – Failure to make residual receipts deposit Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $44,817 Statement of Condition #2025-001: During 2025, the Corporation did make its required residual receipts deposit of $44,817. In addition, the Corporation made a payment on the CRA loan of $44,817 without HUD approval. Criteria: Pursuant to the Regulatory Agreement, the Corporation is required to deposit its surplus cash into a residual receipts account within 90 days after year-end. Additionally, pursuant to the Regulatory Agreement, disbursements of the residual receipts fund may be made only after receiving consent in writing from HUD. Effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation received an invoice for payment on the CRA loan equal to the amount of surplus cash as calculated at December 31, 2024. Rather than making the required deposit into the residual receipts reserve and then requesting HUD approve the withdrawal on HUD Form 9250, the Corporation make the CRA loan payment directly. Recommendation: The Corporation and management should deposit surplus cash into the residual receipts reserve upon receipt of the audited financial statements. Management should then seek HUD approval via HUD Form 9250 for payment on the CRA loan after the invoice is received. Management Response: The Corporation and management agree with the recommendation. No further action is required.

Finding reference number: #2023-001 CFDA title and number (Federal award identification number and year): Supportive Housing for the Elderly Section No. 14.157 (122-EE078-WAH-NP and 1996) Auditor non-compliance code: H – Unauthorized distribution of projected assets Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $1,157 Statement of Condition #2023-001: During the year ended December 31, 2023, the Corporation made a payment on the CRA loan of $1,157 without HUD approval. Criteria: Pursuant to the Regulatory Agreement, disbursements of the residual receipts fund may be made only after receiving consent in writing from HUD. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. Cause: The Corporation did make the required residual receipt deposit following the December 31, 2022 audit. The CRA loan is to be paid from residual receipts. The Corporation made a payment on the CRA loan in the amount of $1,157 from operations without HUD approval. Recommendation: Management should submit a residual receipts request to HUD for the withdrawal in the amount of $1,157. In the future, management should obtain approval from HUD before making any payments on the CRA loan. Management Response: Management concurs with the finding and will submit a residual receipts withdrawal request in the amount of $1,157 during the year ended December 31, 2024.

Finding reference number: #2021-001 CFDA title and number (Federal award identification number and year): Supportive Housing for the Elderly Section No. 14.157 (122-EE078-WAH-NP and 1996) Auditor non-compliance code: B - Failure to make residual receipt deposit Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: No Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $27,014 Statement of Condition #2021-001: During the year ended December 31, 2021, the Corporation did not make the required residual receipts deposit based on the December 31, 2020 surplus cash calculation in the amount of $27,014 within 90 days of fiscal year end. As of December 31, 2021, $491 was still required to be deposited. Criteria: Pursuant to Paragraph 5(c) of the Regulatory Agreement, the Property shall establish and maintain residual receipts in a separate account and deposits to this account must be made within 90 days of fiscal year-end in the amount of the surplus cash at year-end. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. Cause: Management did not make the required deposit of $27,014 within 90 days of year end based on the December 31, 2020 surplus cash calculation. As of December 31, 2021, $491 was still required to be deposited. Recommendation: Management should transfer funds of $491 from the operating account in order to bring the residual receipts account to current. Completion date: Completed. Management Response: Agree. Management transferred $491 from the operating account to the residual receipts account in March 2022. No further action is required.

Finding reference number: #2020-001 CFDA title and number (Federal award identification number and year): Supportive Housing for the Elderly Section No. 14.157 (122-EE078-WAH-NP and 1996) Auditor non-compliance code: B - Failure to make residual receipt deposit Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: No Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $28,681 Statement of Condition #2020-001: During the year ended December 31, 2020, the Corporation did not make the required residual receipts deposit based on the December 31, 2019 surplus cash calculation in the amount of $28,681 within 90 days of fiscal year end. Criteria: Pursuant to Paragraph 5(c) of the Regulatory Agreement, the Property shall establish and maintain residual receipts in a separate account and deposits to this account must be made within 90 days of fiscal year-end in the amount of the surplus cash at year-end. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. Cause: Management did not make the required deposit of $28,681 based on the December 31, 2019 surplus cash calculation during the year ended December 31, 2020. Recommendation: Management should transfer funds of $28,681 from the operating account in order to bring the residual receipts account to current. Completion date: Completed. Management Response: Agree. On March 22, 2021, management transferred $28,681 from the operating account to the residual receipts account. No further action is required.

Finding reference number: #2019-001 CFDA title and number (Federal award identification number and year): Supportive Housing for the Elderly Section 202 Direct Loan, CFDA No. 14.157 (122-EE078-WAH-NP and 1996) Auditor non-compliance code: B - Failure to make residual receipt deposit Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: No Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $19,492 Statement of Condition #2019-001: During the year ended December 31, 2019, the Corporation did not make the required residual receipts deposit based on the December 31, 2018 surplus cash calculation in the amount of $19,492 within 90 days of fiscal year end. Criteria: Pursuant to Paragraph 5(c) of the Regulatory Agreement, the Property shall establish and maintain residual receipts in a separate account and deposits to this account must be made within 90 days of fiscal year-end in the amount of the surplus cash at year-end. Effect: The Property is not in compliance with the terms of the Regulatory Agreement. Cause: Management did not make the required deposit of $19,492 based on the December 31, 2018 surplus cash calculation until October 17, 2019. Recommendation: Management should transfer funds of $19,492 from the operating account in order to bring the residual receipts account to current. Completion date: October 17, 2019 Management Response: Agree. On October 17, 2019, management transferred $19,492 to the residual receipts account. No further action is required.

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