AGENDA ALASKA HOUSING FINANCE CORPORATION AUDIT COMMITTEE OF THE BOARD OF DIRECTORS

Transcription

1 AGENDA ALASKA HOUSING FINANCE CORPORATION AUDIT COMMITTEE OF THE BOARD OF DIRECTORS July 25, :30 am I. Roll Call II. III. IV. Approval of Agenda Review and approval of the April 25, 2018 Internal Audit Committee minutes Presentation by BDO AHFC s FY18 External Auditors V. Presentation and approval of FY18 4 th Quarter IAD Audit Reports: A. KIHA Servicer and Loan To Sponsor Program, Internal Audit Report B. Ketchikan AMP 279, Internal Audit Report C. Northrim Bank Servicer, Internal Audit Report VI. Presentation and discussion of FY18 4 th Quarter IAD Activity Reports: A. Internal/External Audit Activity Report B. Internal/External Audit Follow-up Activity Report C. Grantee Financial/Administrative Monitoring Activity Report D. Affordable Housing Compliance Monitoring Activity Report VII. Presentation and approval of IAD s FY19 Annual Internal Audit Plan A. AHFC Audit Committee Consideration Memorandum B. IAD FY19 Annual Internal Audit Plan C. AHFC Audit Committee Resolution VIII. IX. Any other matters to properly come before the Committee Adjournment The Chair may announce changes in the Order of Business during the meeting.

2 April 25, 2018 MINUTES ALASKA HOUSING FINANCE CORPORATION AUDIT COMMITTEE Anchorage 8:30 a.m. The Audit Committee met April 25, 2018 in the AHFC boardroom, 4300 Boniface Parkway in Anchorage, AK at 8:30 a.m. Board members present were: ALAN WILSON Anchorage BRENT LEVALLEY Anchorage HAVEN HARRIS Via teleconference MIKE BARNHILL Via teleconference Committee Chairman Committee Member Committee Member Designee for Commissioner Department of Revenue Committee Member I. ROLL CALL. ALAN WILSON called the meeting to order. A quorum was declared present and the meeting was duly and properly convened for the transaction of business. II. APPROVAL OF AGENDA. ALAN WILSON asked for any additions or changes to the agenda. Seeing and hearing no objections, the agenda was approved as presented. III. MINUTES OF JANUARY 31, ALAN WILSON asked for revisions or acceptance. Seeing and hearing no objections, BRENT LEVALLEY moved the minutes be approved as submitted. MIKE BARNHILL seconded the motion. The minutes were approved as presented. IV. PRESENTATION AND APPROVAL OF THE FOLLOWING INTERNAL AUDIT REPORTS: A. JADE Travel and Expense, Internal Audit Report Kevin Tune introduced the item and Sarah Burrows presented. Ms. Burrows stated that the purpose of this internal audit was to determine compliance with AHFC s Travel Guide. The internal audit resulted in one observation to report to the Committee; the internal audit opinion was determined as satisfactory. Discussion followed. Seeing and hearing no objections, the report was 1

3 unanimously accepted by the Committee. B. Non-Public Personal Information, Internal Audit Report Kevin Tune introduced the item and Sarah Burrows presented. Ms. Burrows stated that the purpose of this internal audit was to determine if Non-Public Personal Information (NPPI) is being secured and protected in accordance with State and Federal Regulations. The internal audit resulted in three observations to report to the Committee with two being repeat findings; the internal audit opinion was determined as unsatisfactory. Discussion followed. Seeing and hearing no objections, the report was unanimously accepted by the Committee. C. Jumpstart Program, Internal Audit Report Kevin Tune introduced the item and Sarah Burrows presented. Ms. Burrows stated that the purpose of this internal audit was to determine if AHFC s Public Housing Division (PHD) staff administer and manage the Jumpstart Program in accordance with Federal Regulations and AHFC s PHD Policies and Procedures. The internal audit resulted in no observations to report to the Committee; the internal audit opinion was determined as satisfactory. Discussion followed. Seeing and hearing no objections, the report was unanimously accepted by the Committee. D. FFIC Housing Choice Voucher Program, Internal Audit Report Kevin Tune introduced the item and Sarah Burrows presented. Ms. Burrows stated that the purpose of this internal audit was to assess AHFC s Fairbanks Family Investment Center s (FFIC) administration of the Housing Choice Voucher (HCV) Program for compliance with applicable Housing and Urban Development (HUD) Regulations and AHFC s Public Housing Division s (PHD) HCV Administrative Plan under Rent Reform. The internal audit resulted in no observations to report to the Committee; the internal audit opinion was determined as satisfactory. Discussion followed. Seeing and hearing no objections, the report was unanimously accepted by the Committee. V. PRESENTATION AND DISCUSSION OF FY18 3 RD QUARTER INTERNAL AUDIT ACTIVITY REPORTS: Kevin Tune introduced and presented the Internal/External Activity Report, Internal/External Follow-up Activity Report, and Grantee Financial/Administrative Monitoring Report. Dave White provided a summary of the Affordable Housing Compliance Monitoring Report. No action was requested of or taken by the Committee. VIII. EXECUTIVE SESSION: Corporation s operational matters that may have an impact on the corporation s financial matters. Committee action related to this matter, if any, will take place in the public session following the Executive Session. *NOTE: Committee decided to move the Executive Session up on the agenda. CHAIRMAN WILSON requested a motion. BRENT LEVALLEY made a motion to adjourn into Executive Session. MIKE BARNHILL seconded. Seeing and hearing no objections, the board moved into Executive Session. Off Record: 8:55 a.m. EXECUTIVE SESSION On Record: 9:22 a.m. 2

4 CHAIRMAN WILSON reconvened the meeting and announced that no action was taken during Executive Session. VI. PRESENTATION AND APPROVAL OF BDO S AUDITING AND ACCOUNTING CONTRACT EXTENSION: Kevin Tune introduced and presented. Mr. Tune stated that the Auditing and Accounting Contract (15-AUD-001) between AHFC and BDO will end on May 18, The original term of the contract was for three (3) years with an option to extend up to two (2) additional one (1) year periods at the sole discretion of AHFC. Based on discussions with AHFC Executive Office and reassurances from BDO Management that the external audit will be completed within the required timeframe, it is felt that it is in the best interest of AHFC to exercise the first one-year renewal option extending the contract to May 18, Discussion followed. BRENT LEVALLEY made a motion to approve Resolution MIKE BARNHILL seconded the motion. The resolution was unanimously approved. (4-0) RESOLUTION # AUDIT COMMITTEE RESOLUTION OF ALASKA HOUSING FINANCE CORPORATION APPROVING A ONE-YEAR EXTENSION FOR BDO TO SERVE IN THE CAPACITY AS AHFC S EXTERNAL AUDITORS. VII. ANY OTHER MATTERS TO COME BEFORE THE COMMMITTEE. ALAN WILSON asked if there were any other matters to come before the Committee. There were none brought before the Committee. IX. ADJOURNMENT: Seeing and hearing no objections, the meeting was adjourned at 9:25 a.m. ATTESTED: Alan Wilson Audit Committee Chair 3

5 AUDIT PLANNING Year Ending June 30, 2018 The following communication was prepared as part of our audit, has consequential limitations, and is intended solely for the information and use of those charged with governance (e.g., Board of Directors and Audit Committee) and, if appropriate, management of the Organization and is not intended and shall not be used by anyone other than these specified parties. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK Organization limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

6 Tel: Fax: C Street, Suite 600 Anchorage, AK May 22, 2018 Audit Committee Alaska Housing Finance Corporation Professional standards require us to communicate with you regarding matters related to the financial statement audit that are, in our professional judgment, significant and relevant to your responsibilities in overseeing the financial reporting process. This report provides an overview of our plan for the audit of the financial statements of Alaska Housing Finance Corporation (the Organization) as of and for the year ending June 30, 2018, including a summary of our overall objectives for the audit, and the nature, scope, and timing of the planned audit work and any other permitted services requested by the Organization, as pre-approved by those charged with governance. We are pleased to be of service to the Organization and look forward to discussing our audit plan, as well as other matters that may be of interest to you, during our meeting on May 22, Respectfully, BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK Organization limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

7 Discussion Outline Client Service Team 4 Management s Responsibilities 5 Engagement Objectives 6-7 Overall Audit Strategy Planned Scope 8-9 Overall Audit Timeline 10 Independence Communication 11 Significant Accounting and Reporting Matters 12 Get to Know BDO Page 3

8 Client Service Team Our client service team members for this year s audit, compliance, and other special services are listed in the organizational chart below. Assurance Services Engagement Quality Control Reviewer To be determined Engagement Partner Alex Beckman Manager James Doughty In-Charge Kayla Bishop Page 4

9 Management s Responsibilities Management is responsible for preparing, with the oversight of those charged with governance, the financial statements and disclosures in conformity with accounting principles generally accepted in the United States of America (GAAP) as of June 30, Management s responsibilities also include the following: Establish and maintain effective internal control over financial reporting and proper accounting records. Identify and ensure compliance with relevant laws and regulations. Safeguard the Organization s assets. Select appropriate accounting principles. Use reasonable judgments and accounting estimates. Complete a GAAP disclosure checklist to ensure there are no significant financial statement disclosure deficiencies. Make all financial records and related information available to BDO. Record material audit adjustments and affirm to BDO that the impact of uncorrected misstatements is immaterial to the financial statements taken as a whole. Provide BDO with a letter confirming representations made during the audit. Page 5

10 Engagement Objectives Our objectives with respect to the audit of the Organization s annual financial statements are summarized below: Plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatements, whether caused by error or fraud. An audit in accordance with auditing standards generally accepted in the United States of America does not provide absolute assurance relative to or any guarantee of the accuracy of the financial statements and is subject to the inherent risk that errors or fraud, if they exist, may not be detected. Obtain a sufficient understanding of the Organization s internal control to plan the audit of the financial statements. However, such understanding is required for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. Communicate our responsibilities in relation to the audit and establish an understanding of the terms of the engagement, including our engagement letters to you. Provide an overview of the overall audit strategy and planned scope and timing of the audit. Inquire of those charged with governance about risks of material misstatement, including fraud risks, and whether those charged with governance are aware of other matters that may be relevant to the audit such as violations or possible violations of laws or regulations and complaints or concerns raised regarding accounting or auditing matters. Coordinate with the Organization s internal audit function and others, as appropriate, to optimize audit effectiveness and efficiency. Consult regarding accounting, and reporting matters as needed throughout the year. Communicate with management and those charged with governance regarding significant deficiencies and material weaknesses identified during our audit, and other timely observations that are significant and relevant to the financial reporting process, if any. Page 6

11 Engagement Objectives Work with management toward timely issuance of financial statements and single audit reports. Maintain our independence with respect to the Organization. Ensure that those charged with governance are kept appropriately informed in a timely manner of the Organization s financial reporting matters; comply with professional standards as to communications with those charged with governance. Page 7

12 Overall Audit Strategy Planned Scope Overall, our audit strategy is to focus on higher risk areas of material misstatement (whether due to error or fraud) and other areas of concern for management and those charged with governance. Our audit strategy includes consideration of: Prior year audit results, including discussions with management and those charged with governance regarding the Organization s operations, business activities, and risks. Inherent risk within the Organization (i.e., the susceptibility of the financial statements to material error or fraud) before recognizing the effectiveness of the control systems. A continual assessment of materiality thresholds based upon qualitative and quantitative factors affecting the Organization. Recent developments within the industry, regulatory environment, and general economic conditions. Recently issued and effective accounting and financial reporting guidance. The Organization s significant accounting policies and procedures, including those requiring significant management judgments and estimates and those related to significant unusual transactions. The control environment, risk management and monitoring processes, and the possibility that the control systems and procedures may fail to prevent or detect a material error or fraud. We will place reliance on internal controls, where applicable, in determining the degree of detailed substantive testing required. Information about systems and the computer environment in which financial records and related systems operate. Reliance upon the Organization s internal audit function. Page 8

13 Overall Audit Strategy Planned Scope Based upon our initial assessment, our audit will entail a combination of testing controls for reliance and substantive testing. The primary areas of focus in our overall audit strategy include the following. Fraud Risk Internal Control Over Financial Reporting Revenue Recognition Receivables and Allowances Investments Bonds payable and Covenant Compliance Net Pension Liability Effectiveness and Valuation of Cash Flow Hedges Evaluation of Going Concern 2 CFR Part 200, Subpart F Major Program Determination and Compliance procedures Other Matters, Including Significant Unusual Transactions Page 9

14 Overall Audit Timeline The following represents our anticipated schedule with regard to our audit of the annual financial statements of the Organization: Periodic Meetings and Discussions With Management, as necessary Develop Audit Strategy, and Determine Nature and Scope of Testing Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Internal Controls Testing Substantive Testing (confirmation procedures, etc.) Review Draft Financial Statements Final Communications With Those Charged With Governance Release Opinions on Financial Statements Page 10

15 Independence Communication Our engagement letter to you describes our responsibilities in accordance with professional standards and certain regulatory authorities with regard to independence and the performance of our services. This letter also stipulates the responsibilities of the Organization with respect to independence as agreed to by the Organization. Please refer to that letter for further information. Page 11

16 Significant Accounting and Reporting Matters GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions Effective Date: The provisions in Statement 75 are effective for fiscal years beginning after June 15, Earlier application is encouraged. GASB Statement No. 86, Certain Debt Extinguishment Issues Effective Date: The requirements of this Statement are effective for reporting periods beginning after June 15, Earlier application is encouraged. Page 12

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18 Get to Know BDO BDO commits significant resources to keep our professionals and our clients up to date on current and evolving technical, governance, industry and reporting developments. Our clients time is valuable, as management must meet all compliance requirements while maintaining lean and efficient teams. This is why our culture guides us to view ourselves as trusted advisors, not merely accountants serving compliance needs. By leveraging the shared knowledge of our top professionals across the country and globe, we develop succinct thought leadership and training programs to help clients stay abreast of emerging trends and requirements. Our thought leadership consists of quarterly updates, publications, surveys, practice aids, and tools that span a broad spectrum of topics that impact financial reporting, as well as corporate governance. Our focus is not to simply announce changes in technical guidance, regulations or emerging business trends, but rather expound on how such changes may impact our clients businesses. Some examples of our thought leadership offerings include the following: Board Reflections A resource center that includes BDO s proprietary studies, publications, practice aids, and educational programs to keep board members of both public and private companies up to date on emerging issues and trends to assist in fulfilling their corporate oversight responsibilities. The resource center contains customized information for the various committees of the board. For example, refer to our Effective Audit Committees in the Ever Changing Marketplace practical guide and related tools. Visit Significant Accounting and Reporting Matters Guide Quarterly digest of final and proposed financial accounting standards designed to help audit committees, boards and financial executives keep up to date on the latest corporate governance and financial reporting developments. Client Advisories Concise documents that provide timely commentary, analysis and insights on events and trends of interest to management and boards of directors. Page 14

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53 ALASKA HOUSING FINANCE CORPORATION AUDIT COMMITTEE CONSIDERATION MEMORANDUM Date: July 25, 2018 Staff: R. Kevin Tune Item: Resolution Approval of FY19 Annual Internal Audit Plan Background: This Annual Internal Audit Plan (Plan) is provided for the information and consideration of AHFC s Audit Committee (AC). Its primary purpose is to convey the scope of the work to be performed by the Internal Audit Department (IAD) during FY19. Elements Used to Develop the Audit Plan Annual Risk Assessment IAD uses an internal risk assessment consisting of several factors including Previous Internal Audit Rating, Financial Impact, Regulatory Impact, Corporate Mission, Legislative Impact, and Internal Audit Rotation. The risk assessment is performed annually on the entire known Internal Audit Universe of AHFC. Those departments/programs accumulating sixteen (16) or more points are determined to have a risk rating of high, points moderate, and below 10 low. It is our practice to include all departments/programs receiving sixteen (16) or more points on the Plan. Requests of Senior Staff and Audit Committee Members (AC) The IAD requests AHFC Senior Management and members of the AC to provide input regarding any area of operation that they would like included in the Plan. Key Points to the FY19 IAD Annual Plan The IAD has 16,640 available staff hours. 4,383 hours were allocated to Internal/External Audit Projects. 7,899 hours were allocated to Affordable Housing Compliance Monitoring reviews. 4,358 hours were allocated to the Administrative component of the department s operations. Planned Audit Projects is thirty-six (36). Planned Grantee Financial/Administrative Monitoring Reviews is thirty-one (31). Planned Affordable Housing Compliance Portfolio Reviews is one hundred eighty-two (182). The IAD cannot perform Consulting Engagements without reallocating project hours. Page 1

54 Issue: The Audit Committee Charter Article V: Responsibilities and Duties of the Audit Committee, Internal Audit Section, requires that AHFC s Audit Committee approve the Annual Audit Plan and all major changes to the Plan. Recommendation: Staff and I have made every effort to insure that this Plan provides a level of Internal/External audits, Affordable Housing Compliance Monitoring, and Grantee Financial/Administrative Monitoring coverage needed in order to provide assurance to the AC that AHFC Departments and our external clients are operating in an efficient and effective manner. I respectfully request that the AHFC Audit Committee approve the FY19 Annual Audit Plan. Page 2

55 FY19 IAD Annual Plan (FY19 7/18) CORPORATE INTERNAL AUDITS Status/Last Audit Budget Hrs. Hrs. Used Hrs. Unused % Budget Used Administrative Services Sourcing and Contract Compliance FY % Human Resources Hiring Practices FY % Employee Benefits FY % Payroll FY % Information Systems Desk Top Support and Application Management FY % Application Database Management FY % Cyber Security New % Dynamics - Yardi On Going % Mortgage Operations/Servicing Alaska Benteh Capital LTS New % Early Payment Default New % FNBA Servicer FY % FNBA Sub-servicing Contract New % FNHS LTS FY % Frontier Range New % FTHB FY % HP Lofts FY % IT Apartments FY % Mortgage Program Revisions New % Multi-Family FY % Northrim Bank FY 18 Carry over FY % VMP FY % Wells Fargo Servicer FY % Planning Program Development 811 Program New % Housing Trust Fund New % THHP FY % Research and Rural Development Rebate Program Closeout (FY 18 Carryover) FY % State Energy Program FY % Supplemental Housing Program FY % Specialty Projects Annual Officer Call Program Annual % Enterprise Risk Management FY 18 Carryover Consulting % Total Corporate Internal Audit Hours % PHD SITE & SPECIALTY AUDITS Status/Last Audit Budget Hrs. Hrs. Used Hrs. Unused % Budget Used Site Audits: AFIC Lottery New % Anchorage AMP 247 FY % Anchorage AMP 274 FY % Bethel AMP FY % Chugach View S8N FY % Juneau PHD Site FY % Kodiak PHD Site FY % Nome AMP FY % Ptarmigan S8N FY % Seward S8N FY % Sitka PHD Site FY % Soldotna HCV FY % Total PHD Internal Audit Hours % FOLLOW-UP FY 18 AUDITS Status Budget Hrs. Hrs. Used Hrs. Unused % Budget Used Home Energy Rebate Program Follow-up % KIHA Follow-up % Northrim Bank Follow-up % NPPI Follow-up % Total Follow-up Internal Audit Hours % EXTERNAL AUDITORS Status Budgeted Hrs. Unused % Budget Used BDO On Going % DOE/HUD/LBA/DOR On Going % Total External Auditors Hours % Page 1

56 FY19 IAD Annual Plan (FY19 7/18) GRANTEE FINANCIAL MONITORING Status/Last Review Budget Hrs. Hrs. Used Hrs. Unused % Budget Used General On Going % Partners for Progress FY 18 Carryover FY % FNHS FY 18 Carryover FY % Covenant House FY 18 Carryover FY % Alaska Coalition on Housing and Homelessness New % Alaska Coalition to End Homelessness New % Alaska Community Development Corporation FY % Alaska Mental Health Consumer Web New % Alaskan AIDS Assist Association FY % Anchorage Community Mental Health FY % ANHS - Neighborworks FY % Baranof Island Housing Authority New % Bering Straits RHA FY % Bering Straits School District New % Cold Climate Housing Research FY % Copper River Basin RHA FY % Deep Green Housing and Community Development FY % Gastineau Human Services FY % Interior AIDS Association FY % Interior Center for Non-violent Living FY % Interior Weatherization FY % Kodiak Island Housing Authority FY % Lake Peninsula School District New % Metlakatla RHA FY % Rural Alaska Community Action Program FY % Shiloh Community Housing FY % Tlingit Haida RHA FY % Tundra Women's Council FY % Unalaskans Against Sexual Assault and Family Violence New % Valley Charities, Inc. FY % Valley Residential Services FY % Total Grant Compliance Monitoring Hours % COMPLIANCE MONITORING GENERAL Status Budget Hrs. Hrs. Used Hrs. Unused % Budget Used General: Owner/Manager Assistance N/A % Specific: (Inner Depart/Program/Limits/Web/Manual) N/A % Total Compliance Monitoring General Hours % COMPLIANCE MONITORING DEVELOPMENTS Review Status (S/D) Budget Hrs. Hrs. Used Hrs. Unused % Budget Used Alaska Village Subdivision 56 Preliminary Work % Access Apartments D % Adelaide SRO D % Alderbrook Phase I D % Alderbrook Phase II D % Alderview Apartments S % Anchor Point Seniors S % Angoon Elderly Center D % APD 18 Housing Partners D % APD 21 Housing Partners D % Aurora Vista D % Baranof Island Housing Authority (Monastery Street) S % Bartlett Terrace S % Bayview Apartments S % Birch Creek Villas (Meadow Lake) D % Birch House S % Birch Terrace D % Birchwood Apartments S % Blueberry Pointe D % Brighton Park D % Brookside (Homes By the Sea) D % Captain Beans S % Caswell Court aka: Elkutna Estates II S % Carlanna Subdivision D % Channel View Apartments D % Channel Terrace (GMD) D % Chester Creek Apartments D % Chester Park Apartments D % Chickaloon Landing D % Page 2

57 FY19 IAD Plan (Compliance Section) (FY19 7/18) COMPLIANCE MONITORING DEVELOPMENTS Review Status (S/D) Budget Hrs. Hrs. Used Hrs. Unused % Budget Used Chinook House S % Chinook & Northward (Acg/Rehab) S % Chugach Colony Estates (Phase II) S % Chugach Senior Citizens Services S % Clear Pointe (1st year) S % Colony Estates D % Cordova Apartments (ACQ/REHAB) D % Coronado Park S % Crane Hill Preliminary Work % Creekside - Girdwood S % Crestview Plaza 49 D % Creekwood D % Crest View D % Dusty Trails (Original) - Ref: Acg/Rehab D % Dusty Trails Acg/Rehab (1st year) S % Eagle View Senior Housing S % Eagleridge S % Eagle's Nest S % Eaglewood S % Eklutna Estates I D % Elizabeth Place Preliminary Work % Emerald Heights (Near Island Elderly Housing) D % Father Gromoff Senior (Aleutian Housing Senior) S % Fireweed Villa - Soldotna Senior Citizens D % Forest View Apartments D % Forrest Hill Phase I D % Forrest Hill Phase II D % Friendship Terrace D % Gateway Apartments S % Glacier Park Apartments (1st year) S % Glacier Village I S % Glacier Village II & III S % Grass Creek S % Grass Creek North I D % Grass Creek North II (1st year) S % Gruening Park I S % Haines Senior Village D % Hampstead Heath D % Harbor Ridge D % Harmony Villas (KPHI) (1st year) S % Heritage Heights aka: Kodiak Senior D % Hillcrest Manor I D % Hillcrest Manor II D % Hillpoint Apartments D % Hillview Apartments S % Holiday Heights S % Housing First Transitional (1st year) S % Trillium Landing (1st year) aka: Home Run I S % Hooper Bay (AVPRHA) D % Hunter Creek Apartments D % Inlet Ridge I D % Inlet Ridge II D % Jewel Lake Villa D % Kake Low Rent S % Kenai Meadows Preliminary Work % Kenaitze Point D % Kimberly Court Acg/Rehab D % Knik Manor Seniors Facility D % Little Dipper D % Loussac Manor S % Loussac Sogn D % Lulu Heron S % Lumen Park Senior Housing S % Manokotak View Apartments D % Maurlut Eniit Senior Apts D % Meda Lord Senior D % Mill Bay Preliminary Work % MLH Manor D % Page 3

58 FY19 IAD Annual Plan (FY19 7/18) COMPLIANCE MONITORING DEVELOPMENTS Review Status (Site/Desk) Budget Hrs. Hrs. Used Hrs. Unused % Budget Used Mooring Estates D % Mountain View Manor Assisted Living S % Mountain View Scattered Sites (Phase I) S % Mountain View Scattered Sites (Phase II) D % Mountain View Scattered Sites (Phase III) D % Mountain View Scattered Sites (Phase IV) S % Mountain View Scattered Sites V D % Muklung Manor D % Muldoon Gardens (1st year) S % Muldoon Manor S % Munaqsri Senior Apartments S % New Stuyahok Apartments D % Nikiski Senior Center Services D % Northward Building D % Orca Point S % Pacific Park Apartments S % Parkview Apartments D % Pioneer Heights S % Pioneer Vista S % Ptarmigan Heights D % Raven Tree Court S % Ravens Landing I S % Raven's Landing II S % Raven's Landing III S % Raven's View (Cooper Landing) S % Ridgecrest Apartments D % Ridgeline Terrace D % Riverpoint Village S % Sawmill Creek S % Silverwood I D % Silverwood II D % Silverwood III D % S'it Tuwan Apts S % Sleepy Spruce (1st year) S % Soundview Apartments D % South Vista Haven aka: Raven Estates D % Southside Seniors D % Southwest Elderly D % Spenard Mixed Use (CIHA) (1st year) S % Spruce Cape Preliminary Work % Spruce View Apartments D % Sterling Moose River Manor I D % Sterling Moose River Manor II D % Strasbaugh Apartments S % Strawberry Village Cottages S % Sunrise House D % Sunshine Senior Village S % Susitna Place S % Susitna Square D % 325 East 3rd Avenue aka: Susitna View D % Swatzell Terrace D % Swanson House D % Taiga View Apartments D % Lawson Lake I S % Lawson Lake II (1st year) S % Terrace View D % The Haley Hills (Phase I) D % The Haley Hills (Phase II) D % Togiak View Apartments D % Tovarish Manor, PH I D % Tovarish Manor, PH II S % Tradewind Apartments S % Trailside Heights I D % Trailside Heights II S % Trailside Heights III D % Turnagain Townhomes Preliminary Work % Tuyuryarmiat Tegganritta Eniit D % Tyee Court D % Page 4

59 FY19 IAD Plan (Compliance Section) (FY19 7/18) COMPLIANCE MONITORING DEVELOPMENTS Review Status (Site/Desk) Budget Hrs. Hrs. Used Hrs. Unused % Budget Used Tyonek Terrace S % Vista Rose I (1st year) S % Vista Rose II Preliminary Work % Weeks Field Estates I S % Weeks Field Landing II S % Whispering Winds Preliminary Work % Willow Haven Senior Villa D % Willow Parkway Senior Housing D % Willow Pointe Apartments D % Yenlo Square S % Total TC/HOME/Senior Compliance Hours % NSP COMPLIANCE MONITORING Review Status (S/D) Budget Hrs. Hrs. Used Hrs. Unused % Budget Used General N/A % ANH - Connolly Square 202 Housing D % ANH - The Roosevelt 811 Housing D % ANH - The Arc of Anchorage - Kuskokwim D % Community Development Inc. - Weeks Field II D % Cook Inlet Housing 631 North Klevin D % Cook Inlet Housing 715 North Klevin D % Cook Inlet Housing 839 North Klevin D % Cook Inlet Housing 418 North Park D % Cook Inlet Housing 523 North Park D % Cook Inlet Housing 534 North Park D % Cook Inlet Housing 633 North Park D % Cook Inlet Housing 610 North Hoyt D % Cook Inlet Housing 410 North Bunn D % Cook Inlet Housing 4340 Peterkin D % FNH Affordable Housing #1 D % FNH Affordable Housing #2 D % FNH Affordable Housing #3 D % KPHI - Alderbrook II D % KPHI - Inlet Ridge I D % KPHI - Silverwood III D % KPHI - Tyee Court D % Raven's Landing I D % Raven's Landing II D % Raven's Landing III D % Raven's Landing IV D % Rural Cap Affordable Housing #1 D % Rural Cap Affordable Housing #2 D % Total NSP Compliance Hours % Total FY19 IAD Project Hours % FY19 IAD ADMINISTRATIVE IAD ADMINISTRATIVE HOURS Status Budget Hrs. Hrs. Used Unused % Budgeted Audit Committee Preparation Ongoing % Budget Monitoring and Preparation Ongoing % Management Administration Ongoing % Time Tracking and Input Ongoing % Corporate Meetings: Audit Committee Ongoing % Board Ongoing % IAD Staff Ongoing % Senior Staff Ongoing % AHFC Events Ongoing % Training: Conference/Seminars/Webinars/General Reads Ongoing % Time Off Compliance Shop: Holidays (12 days) Ongoing % Vacations & Sick Ongoing % FY19 Budgeted Administrative Hours % FY19 Budgeted Project Hours % FY19 Total Budgeted Hours % Page 5

60 ALASKA HOUSING FINANCE CORPORATION AUDIT COMMITTEE RESOLUTION RESOLUTION Resolution approving the Internal Audit Department s FY19 Annual Audit Plan. WHEREAS, the Director of Internal Audit for the Alaska Housing Finance Corporation submitted for Audit Committee approval on July 25, 2018 a recommendation to approve the Internal Audit Department s FY19 Annual Audit Plan; and WHEREAS, the requested recommendation was presented and considered at said meeting; and WHEREAS, the Audit Committee of Alaska Housing Finance Corporation approved the Internal Audit Department s FY19 Annual Audit Plan. NOW, THEREFORE, BE IT RESOLVED that the Audit Committee of Alaska Housing Finance Corporation approved the Internal Audit Department s FY19 Annual Audit Plan. PASSED AND APPROVED by the Audit Committee of Alaska Housing Finance Corporation this 25 th day of July, Alan Wilson, AHFC Audit Committee Chair