PHAC No. 1, Inc.Non-Profit

S3800-010 Finding Reference Number ? 2020-001 S3800-011 Title and CFDA Number of Federal Program ? 14.157 Section 202 Capital Advance S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? Unable to determine S3800-018 Sample Size Information ? None S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? Management is required to provide the auditors with sufficient audit evidence to test compliance requirements. S3800-030 Statement of Condition ? Management was unable to provide copies of tenant work orders for testing. S3800-032 Cause ? The previous property manager disposed of the work order documentation or otherwise made it unavailable. S3800-033 Effect or Potential Effect ? The auditors were unable to test work orders to determine if they were being completed in a timely manner. S3800-035 Auditor Non-Compliance Code ? Z S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? The previous property manager took or disposed of the work order documentation. Management was unable to provide work orders for testing. S3800-050 Context ? The auditors were unable to test work orders. S3800-080 Recommendation ? Management should implement a system for recording and maintaining tenant work order documentation. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will implement a system for recording and maintaining tenant work order documentation. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2020 S3800-150 Response ? Management will implement a system for recording and maintaining tenant work order documentation.

S3800-010 Finding Reference Number ? 2020-002 S3800-011 Title and CFDA Number of Federal Program ? 14.157 Section 202 Capital Advance S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? Unable to determine S3800-018 Sample Size Information ? 5 applicant rejections were tested S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with HUD guidelines, applicant rejection letters must provide the right to appeal the decision. Additionally, a reason in accordance with the tenant selection plan must be provided to the denied applicant. S3800-030 Statement of Condition ? The letters sent to rejected applicants did not include the right to appeal to management. Additionally, the letters did not include a reason for denial beyond an ?other? option being selected. S3800-032 Cause ? Management was unaware of the requirement S3800-033 Effect or Potential Effect ? The Project is in violation of HUD guidelines. The auditors were unable to determine if applicants were being denied in accordance with the tenant selection plan. S3800-035 Auditor Non-Compliance Code ? Z S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management will update the wording of the applicant rejection letter and will include a specific reason for rejection. S3800-050 Context ? The Project is in violation of HUD guidelines. S3800-080 Recommendation ? Management should update the wording of the applicant rejection letter and will include a specific reason for rejection. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will update the wording of the applicant rejection letter and will include a specific reason for rejection. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2020 S3800-150 Response ? Management will update the wording of the applicant rejection letter and will include a specific reason for rejection.