CATHOLIC HOUSING OF MOBILE, INC. (A Non-profit Corporation) d/b/a CATHEDRAL PLACE APARTMENTS HUD PROJECT NO NP

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FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION REQUIRED BY HUD FOR THE YEARS ENDED JUNE 30, 2016 AND 2015

To the Department of Housing And Urban Development In accordance with the Consolidated Audit Guide for Audits of HUD Programs the following auditors' information is made available to you. Audit Firm ID (UII): 16130 Audit Firm: Lead Auditor: Title: Wilkins Miller, L.L.C. Michael J. Kintz, CPA Partner Address: 41 West Interstate 65 Service Road North, Suite 400 Mobile, AL 36608 Telephone Number: (251) 410-6700 Fax Number: (251) 410-6799 Tax Identification Number: 27-0355040 Email: mkintz@wilkinsmiller.com Mobile, Alabama September 23, 2016

CONTENTS Page INDEPENDENT AUDITORS' REPORT 1-2 FINANCIAL STATEMENTS Statements of Financial Position 3-4 Statements of Activities 5 Statements of Cash Flows 6-7 Notes to Financial Statements 8-15 SUPPLEMENTARY INFORMATION REQUIRED BY HUD 16 Schedule 1 - Reserve Accounts Data 17 Schedule 2 - Surplus Cash, Fixed Assets Data, and 6900 Accounts 18-19 Schedule 3 - Statement of Financial Position Data 20-21 Schedule 4 - Statement of Activities Data 22-24 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 25 INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 26-27 INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 28-29 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 30-31 SCHEDULE OF THE STATUS OF PRIOR AUDIT FINDINGS, QUESTIONED COSTS, AND RECOMMENDATIONS 32 OWNERS' CERTIFICATION 33 MANAGEMENT AGENT'S CERTIFICATION 34 INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURE 35-37

INDEPENDENT AUDITORS' REPORT The Members and Trustees Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments Mobile, Alabama Report on the Financial Statements We have audited the accompanying financial statements of Catholic Housing of Mobile, Inc. (A Nonprofit Corporation) d/b/a Cathedral Place Apartments (HUD Project No. 062-11117-NP) (the Project), which comprise the statements of financial position as of June 30, 2016 and 2015, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. The Project is an operating division of Catholic Housing of Mobile, Inc. and as such has no separate legal status. The accompanying financial statements include only the accounts of Cathedral Place Apartments (HUD Project No. 062-11117-NP). Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Project's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Project as of June 30, 2016 and 2015, the changes in its net assets (deficit) and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information shown on pages 16 to 24 is presented for purposes of additional analysis as required by the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, Office of the Inspector General, and is not a required part of the financial statements. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 23, 2016, on our consideration of the Project's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Project's internal control over financial reporting and compliance. Mobile, Alabama September 23, 2016-2-

STATEMENTS OF FINANCIAL POSITION June 30 2016 2015 ASSETS Property and Equipment Land $ 172,710 $ 172,710 Buildings 7,929,906 7,899,680 Building Equipment (Portable) 123,167 121,021 Furniture for Project/Tenant Use 11,524 11,524 Maintenance Equipment 3,932 1,158 Motor Vehicles 38,950 38,950 Miscellaneous Fixed Assets 463,069 430,619 8,743,258 8,675,662 Less Accumulated Depreciation (5,534,142) (5,310,272) Property and Equipment, net 3,209,116 3,365,390 Cash, Receivables and Prepaid Expenses Cash - Operations 81,697 6,769 Tenant/Member Accounts Receivable (Coops) 2 18 Accounts Receivable - HUD 3,876 6,865 Accounts and Notes Receivable - Entity 45,948 16,919 Accounts Receivable - Interest 854 854 Prepaid Expenses 27,817 57,232 Total Cash, Receivables and Prepaid Expenses 160,194 88,657 Deposits Held in Trust - Funded Tenant/Patient Deposits Held in Trust 56,101 49,465 Restricted Deposits and Funded Reserves Escrow Deposits 165,191 179,855 Replacement Reserve 424,470 430,598 Residual Receipts Reserve 8,210 8,210 Total Restricted Deposits and Funded Reserves 597,871 618,663 Other Assets Deferred Financing Costs 223,667 231,447 $ 4,246,949 $ 4,353,622 (continued) -3-

STATEMENTS OF FINANCIAL POSITION (CONTINUED) June 30 2016 2015 LIABILITIES AND NET ASSETS (DEFICIT) Liabilities Mortgage Payable - First Mortgage $ 3,549,657 $ 3,793,252 Note Payable - Surplus Cash 1,331,145 1,331,145 Other Loans and Notes Payable - Renovations 7,794 55,794 Other Loans and Notes Payable - Residual Receipts 149,766 147,065 Flexible Subsidy Loan Payable 686,708 707,088 Accounts Payable - Operations 46,713 50,830 Accounts Payable - Section 8 & Other 45,948 4,488 Accrued Wages Payable 17,536 15,327 Accrued Management Fee Payable 11,034 10,623 Accrued Interest Payable - First Mortgage 13,725 - Prepaid Revenue 3,361 8,265 Tenant/Patient Deposits Held in Trust (Contra) 48,392 46,210 Total Liabilities 5,911,779 6,170,087 Unrestricted Net Assets (Deficit) (1,664,830) (1,816,465) $ 4,246,949 $ 4,353,622 See accompanying notes to financial statements -4-

STATEMENTS OF ACTIVITIES Year Ended June 30 2016 2015 REVENUES Rental Gross Rental $ 1,824,885 $ 1,824,332 Less Vacancies (84,617) (68,835) Net Rental 1,740,268 1,755,497 Financial 5,814 5,746 Other 219,258 245,779 Total Revenues 1,965,340 2,007,022 EXPENSES Administrative 416,314 421,934 Utilities 389,114 389,887 Operating and Maintenance 328,847 314,375 Taxes and Insurance 220,825 198,165 Financial 196,643 210,025 Services 26,760 32,710 Depreciation 227,422 317,664 Amortization 7,780 7,780 Total Expenses 1,813,705 1,892,540 Increase in Net Assets 151,635 114,482 UNRESTRICTED NET ASSETS (DEFICIT) Beginning of Year (1,816,465) (1,930,947) End of Year $ (1,664,830) $ (1,816,465) See accompanying notes to financial statements -5-

STATEMENTS OF CASH FLOWS Year Ended June 30 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Revenues Rental Receipts $ 1,738,368 $ 1,756,454 Interest Receipts 5,814 5,746 Gifts - 100 Other Operating Receipts 219,258 264,104 Total Receipts 1,963,440 2,026,404 Expenses Administrative (134,933) (135,962) Management Fee (129,449) (131,292) Utilities (389,114) (389,887) Salaries and Wages (213,160) (210,981) Operating and Maintenance (251,087) (275,949) Property Insurance (142,037) (139,192) Miscellaneous Taxes and Insurance (65,858) (58,973) Tenant Security Deposits (4,454) (997) Other Operating Expenses (14,330) (40,232) Interest on First Mortgage (156,667) (198,171) Interest on Notes Payable (6,990) (7,190) Mortgage Insurance Premium (MIP) (15,849) (16,625) Total Disbursements (1,523,928) (1,605,451) Net Cash provided by Operating Activities 439,512 420,953 CASH FLOWS FROM INVESTING ACTIVITIES Net Deposits to the Mortgage Escrow Account 14,664 (2,144) Net Deposits to the Reserve for Replacement Account 6,128 (74,739) Net Deposits to Other Reserves - (8,210) Net Purchase of Fixed Assets (73,401) (47,790) Net Cash used in Investing Activities (52,609) (132,883) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments - First Mortgage (or Bonds) (243,595) (274,864) Principal Payments on Loans or Notes Payable (68,380) (68,176) Net Cash used in Financing Activities (311,975) (343,040) Net Change in Cash and Cash Equivalents 74,928 (54,970) CASH AND CASH EQUIVALENTS Beginning of Period Cash 6,769 61,739 End of Period Cash $ 81,697 $ 6,769 (continued) -6-

STATEMENTS OF CASH FLOWS (CONTINUED) Year Ended June 30 2016 2015 Reconciliation of Change in Total Net Assets (Deficit) to Net Cash provided by Operating Activities Change in Total Net Assets (Deficit) from Operations $ 151,635 $ 114,482 Adjustments to Reconcile Change in Total Net Assets (Deficit) to Net Cash Provided by Operating Activities Depreciation 227,422 317,664 Amortization 7,780 7,780 Bad Debt - 819 Loss on Disposal of Fixed Assets 2,253 2,648 Decrease (increase) in: Tenant/Member Accounts Receivable (Coops) 16 (837) Accounts Receivable - Other 15,420 9,340 Prepaid Expenses 29,415 (33,270) Cash Restricted for Tenant Security Deposits (6,636) 677 Increase (decrease) in: Accounts Payable (4,117) 9,305 Accrued Liabilities 2,209 4,530 Accrued Interest Payable 16,426 (13,028) Tenant Security Deposits Held in Trust 2,182 (1,674) Prepaid Revenue (4,904) 2,538 Accrued Management Fee Payable 411 (21) Net Cash provided by Operating Activities $ 439,512 $ 420,953 See accompanying notes to financial statements -7-

NOTE 1 - ORGANIZATION CATHOLIC HOUSING OF MOBILE, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 AND 2015 Catholic Housing of Mobile, Inc. (the Corporation) d/b/a Cathedral Place Apartments (HUD Project No. 062-11117-NP) (the Project) was organized as a non-profit corporation on May 7, 1971, by the Archdiocese of Mobile to acquire an interest in real property located in Mobile, Alabama and to construct and operate thereon an apartment complex of 192 units under Section 207 pursuant to Section 223(f) of the National Housing Act. Such projects are regulated by the U.S. Department of Housing and Urban Development (HUD) as to rent charges and operating methods. Requirements for residency at the Project are determined by HUD and include applicants at least 62 years of age meeting minimum requirements for independent living and income limits set by HUD under Section 8 and Section 236 programs. Tenants are eligible to receive assistance through either the Section 8 Housing Assistance Payments Program or Rent Supplement Program, and a significant portion of the Project's rental income is received from HUD. The Project is an operating division of Catholic Housing of Mobile, Inc. and as such has no separate legal status. The accompanying financial statements include only the accounts of Cathedral Place Apartments (HUD Project No. 062-11117-NP). NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Method of accounting The accompanying financial statements are prepared on the accrual basis of accounting. Chart of accounts The chart of accounts used for recording the accounting transactions of the Project are in accordance with the requirements of HUD. Property and equipment Property and equipment are stated at cost less accumulated depreciation. Additions, renewals, and betterments that add materially to productive capacity or extend the life of the asset are capitalized. Expenditures for maintenance and repairs which do not extend the life of the applicable asset are charged to expense as incurred. Upon retirement or disposal of an asset, the asset and accumulated depreciation accounts are eliminated. Any resulting gain or loss is reflected in operations. Property and equipment are depreciated using primarily the straight-line method over estimated useful lives ranging from three to forty years. -8-

NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 AND 2015 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Accounts receivable Accounts receivable consist of balances due from tenants and HUD for various charges, as well as amounts from prior tenants related to the Earned Income Verification program and reimbursements for payroll related to social service grants. The Earned Income Verification program is offset by a corresponding liability in Accounts Payable - Section 8 & Other. The balances were $45,948 and $4,488 as of June 30, 2016 and 2015, respectively. The Project reviews the status of outstanding receivables based on historical collection experience and management's evaluation of the likelihood of their collection. At least annually, accounts for which collection is deemed unlikely are written off. Bad debt recovery was $947 and bad debt expense was $819 for the years ended June 30, 2016 and 2015, respectively. The allowance for doubtful accounts was $4,374 and $7,458 at June 30, 2016 and 2015, respectively. Loan origination fees Loan origination fees are amortized over the term of the loans using the straight-line method, and are included as Deferred Financing Costs on the Statements of Financial Position. June 30 2016 2015 Loan origination fees $ 272,291 $ 272,291 Less accumulated amortization (48,624) (40,844) Loan origination fees, net $ 223,667 $ 231,447 The amortization expected in each of the following five years is $7,780 per year. Unrestricted net assets (deficit) None of the Project's net assets are subject to donor-imposed restrictions. Accordingly, all net assets are accounted for as unrestricted net assets (deficit). Advertising Advertising costs are expensed as incurred. Advertising expense was $6,595 and $8,474 for the years ended June 30, 2016 and 2015, respectively. -9-

NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 AND 2015 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income and other taxes The Corporation is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code. In addition, the Corporation is exempt from most state, county and municipal taxes and licenses. The Corporation is not aware of any uncertain tax positions that would require disclosure or accrual in the financial statements at June 30, 2016 or 2015. The tax years 2012-2015 remain open to examination. Statements of cash flows Cash and cash equivalents is defined for the statements of cash flows as cash for operations on hand and in the bank. Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to the prior year financial statements in order to conform to the current year presentation. None of these changes resulted in an increase or decrease to overall net assets (deficit). Subsequent events Subsequent events have been evaluated through September 23, 2016, which is the date the financial statements were available to be issued. -10-

NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 AND 2015 NOTE 3 - MORTGAGE PAYABLE - FIRST MORTGAGE The Project secured a loan, insured by HUD, for $4,988,600 to refinance the first mortgage. The loan is payable in monthly payments of $36,387 through June 1, 2016, followed by monthly payments of $18,692 through June 1, 2045. The payments include interest at 4.64% per annum. The new loan remains secured by (1) a first mortgage on the real property and improvements and (2) a pledge of all rents, profits, and any other income from operation of the property. Interest reduction payments from subsidy for the fiscal years ended June 30, 2016 and 2015 were $201,940 and $221,025, respectively. Total interest expense on all debt for the years ended June 30, 2016 and 2015 was $180,072 and $192,324, respectively and is included in Financial expense in the Statements of Activities. The balance of Prepaid Mortgage Insurance at June 30, 2016 and 2015 was $14,528 and $15,239, respectively. The Project is indebted as follows: June 30 2016 2015 Current portion $ 60,890 $ 243,595 Non-current portion 3,488,767 3,549,657 $ 3,549,657 $ 3,793,252 The aggregate principal maturities of the mortgage payable at June 30, 2016 are as follows: Year ending June 30 2017 $ 60,890 2018 63,776 2019 61,799 2020 69,965 2021 73,282 Thereafter 3,219,945 $ 3,549,657-11-

NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 AND 2015 NOTE 4 - NOTE PAYABLE - SURPLUS CASH On June 30, 2003, HUD approved an amount for advances and projected advances to the Project from Catholic Housing of Mobile, Inc. of $276,883 under the conditions that (1) Catholic Housing of Mobile, Inc. will be reimbursed from surplus cash as calculated on the annual financial statements, but only if the Reserve for Replacement Account balance exceeds $34,618 and (2) there be no interest accrued or paid on these advances. There have been various other advances approved by HUD in subsequent years to assist with operating costs. HUD has stipulated that these advances can only be repaid from residual receipts, and the repayment of owner advances from funds other than residual receipts is prohibited and can subject the owner to criminal and civil penalties. As of June 30, 2016 and 2015, the balance was $1,331,145. NOTE 5 - OTHER LOANS AND NOTES PAYABLE Renovation On June 30, 2000, HUD approved an agreement for the Project to borrow $250,000 to finance renovations. Catholic Housing of Mobile, Inc. borrowed funds from the Archdiocese of Mobile to be repaid over a period of 15 years. The loan is unsecured and simple interest is applied at a rate of 5%. As of June 30, 2016 and 2015, there was no accrued interest payable. The indebtedness of this loan payable is as follows: June 30 2016 2015 Current portion $ 7,794 $ 55,794 The aggregate principal maturities of the loan payable at June 30, 2016 are as follows: Year ending June 30 2017 $ 7,794 Residual Receipts The Project is also obligated for a residual receipts note payable, which represents the difference in the purchase price of the land and the Federal Housing Administration (FHA) appraised value. In accordance with provisions of the note, the amount, including accrued interest at 7.75% per annum which shall not be compounded, shall be due and payable to the Archdiocese of Mobile on the maturity date of the first mortgage note insured by HUD. Prepayments to principal and interest may be made only from the residual receipts account and only after receiving prior written approval from HUD. The balance at June 30, 2016 and 2015 was $149,766 and $147,065, respectively. -12-

NOTE 6 - FLEXIBLE SUBSIDY LOAN CATHOLIC HOUSING OF MOBILE, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 AND 2015 During the fiscal year ended June 30, 1992, the Project completed a program of improvements funded by a Flexible Subsidy Loan of $753,529. Interest at 1% per annum began accruing March 15, 1991. Principal payments began on February 1, 2012 and are payable over a 35 year period. The Project is indebted as follows: June 30 2016 2015 Current portion $ 20,583 $ 20,379 Non-current portion 666,125 686,709 The aggregate principal maturities of the loan payable at June 30, 2016 are as follows: Year ending June 30 2017 $ 20,583 2018 20,790 2019 20,999 2020 21,210 2021 21,423 Thereafter 581,703 $ 686,708 $ 707,088 $ 686,708 NOTE 7 - RELATED PARTY TRANSACTIONS Property and other insurance premiums are paid to the Archdiocese of Mobile. Total premiums for the years ended June 30, 2016 and 2015 amounted to $142,037 and $139,192, respectively. See Notes 4 and 5 for discussion of related party debt. -13-

NOTE 8 - MANAGEMENT FEES CATHOLIC HOUSING OF MOBILE, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 AND 2015 On October 18, 2002, Royal Management Company, an unrelated entity, was contracted as managing agent of the Project. Management fees are earned by Royal Management Company on a monthly basis at 7.4% of cash receipts, excluding excess rent collections for that month. Management fees expense was $129,860 and $131,271 for the years ended June 30, 2016 and 2015, respectively. The balance in accrued management fees for Royal Management Company as of June 30, 2016 and 2015 was $11,034 and $10,623, respectively. NOTE 9 - ROOF RENTAL The Corporation leases roof space on behalf of the Project to two telecommunications companies under non-cancelable operating leases. The first agreement is for five years with the option to extend for four additional terms of five years. With each renewal, the rent shall increase by 10%. Currently the Corporation is in the second renewal period. The second agreement is for five years with the option to extend for four additional terms of five years. With each renewal, the rent shall increase by 15%. Currently the Corporation is in the first renewal period and the telecommunications company has agreed to renew. Future minimum rentals under the leases that have remaining terms subsequent to June 30, 2016 are as follows: Year ending June 30 Facility Leases 2017 $ 43,156 2018 43,822 2019 43,822 2020 49,297 $ 180,097-14-

NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 AND 2015 NOTE 10 - REGULATORY AGREEMENT Terms of the Regulatory Agreement with HUD require that two special accounts be established as follows: Replacement reserve account Beginning March 22, 2011, the required monthly deposit per the Regulatory Agreement was $4,539. Disbursements from the account may be made only with the approval of HUD for major repairs, renovations, or other purposes. The Project received a notification that HUD increased the required monthly deposit in July 2014 to $5,346. Residual receipts reserve account All residual receipts are required to be deposited in the account within 90 days of each fiscal year-end. Disbursements may be made from the account only with HUD approval. Residual receipts are defined as cash remaining after payment of all amounts currently due, including transfers to the replacement reserve account. As of June 30, 2016 and 2015, the residual receipts balance was $8,210. NOTE 11 - CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS The Project's operations are concentrated in the multifamily real estate market. In addition, the Project operates in a heavily regulated environment. The operations of the Project are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies, including, but not limited to, HUD. Such administrative directives, rules and regulations are subject to change by an act of Congress or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related cost, including the additional administrative burden, to comply with a change. NOTE 12 - RENT INCREASES Under the terms of the Regulatory Agreement, the Project may not raise rent charges to tenants without first receiving HUD approval. -15-

SUPPLEMENTARY INFORMATION REQUIRED BY HUD

SUPPLEMENTARY INFORMATION REQUIRED BY HUD YEAR ENDED JUNE 30, 2016 SCHEDULE 1 - RESERVE ACCOUNTS DATA Reserve for Replacement In accordance with the provisions of the Regulatory Agreement, restricted cash and securities are held by Wells Fargo to be used for replacement of property with the approval of HUD. The following is a summary of the activity in the account for the year ended June 30, 2016: Balance, July 1, 2015 $ 430,598 Total Monthly Deposits (See Note 10) 58,806 Interest on Replacement Reserve Accounts 5,197 494,601 Approved Withdrawals 70,131 Balance, June 30, 2016 $ 424,470 Total confirmed by Mortgagee (reserve for replacements) $ 424,470 Residual Receipts Balance, July 1, 2015 $ 8,210 Deposits - Balance, June 30, 2016 $ 8,210 Total confirmed by Mortgagee (residual receipts reserve) $ 8,210-17-

SUPPLEMENTARY INFORMATION REQUIRED BY HUD (CONTINUED) JUNE 30, 2016 SCHEDULE 2 - SURPLUS CASH, FIXED ASSETS DATA, AND 6900 ACCOUNTS Computation of Surplus Cash, Distributions, and Residual Receipts - Annual Cash $ 137,798 Accounts Receivable - HUD 3,876 Total Cash 141,674 Accrued Mortgage (or Bond) Interest Payable 13,725 Accounts Payable - 30 days 46,713 Accrued Expenses [not escrowed] 17,536 Prepaid Revenue 3,361 Tenant/Patient Deposits Held In Trust (Contra) 48,392 Accrued Management Fee Payable 11,034 Total Current Obligations 140,761 Surplus Cash (Deficiency) $ 913 Deposit Due Residual Receipts $ 913 Changes in Fixed Asset Accounts Assets Balance July 1, 2015 Additions Disposals Balance June 30, 2016 Land $ 172,710 $ - $ - $ 172,710 Buildings 7,899,680 30,226-7,929,906 Building Equipment (Portable) 121,021 3,591 1,445 123,167 Furniture for Project/Tenant Use 11,524 - - 11,524 Maintenance Equipment 1,158 2,989 215 3,932 Motor Vehicles 38,950 - - 38,950 Miscellaneous Fixed Assets 430,619 36,595 4,145 463,069 8,675,662 73,401 5,805 8,743,258 Less Accumulated Depreciation 5,310,272 227,422 3,552 5,534,142 Total Net Book Value $ 3,365,390 $ 3,209,116 Additions and deletions to fixed assets were as follows: Buildings Air handler $ 6,892 Drip pans 10,964 Drain pans 8,492 Valve replacement 3,478 Countertops 400 $ 30,226-18-

SUPPLEMENTARY INFORMATION REQUIRED BY HUD (CONTINUED) JUNE 30, 2016 SCHEDULE 2 - SURPLUS CASH, FIXED ASSETS DATA, AND 6900 ACCOUNTS (CONTINUED) Schedule of 6900 Accounts Building Equipment (Portable) Refrigerator $ (474) Refrigerator (971) Refrigerator 605 Refrigerator 609 Refrigerator 577 Refrigerator 1,000 Range 800 $ 2,146 Maintenance Equipment Air compressor $ (215) Floor machine 2,989 $ 2,774 Miscellaneous Fixed Assets Carpet $ (1,147) Carpet (935) Carpet (1,352) Carpet (711) Carpet 3,367 Carpet 792 Carpet 792 Carpet 1,392 Carpet 1,392 Carpet 1,398 Carpet 1,398 Carpet 5,615 Carpet 518 Carpet 691 Carpet 1,800 Fire hoses 1,363 Fire hoses 8,395 Cabinets 3,100 Cabinets 1,500 Improvements 3,082 $ 32,450 Other Service Expenses $ 26,760-19-

SUPPLEMENTARY INFORMATION REQUIRED BY HUD (CONTINUED) JUNE 30, 2016 SCHEDULE 3 - STATEMENT OF FINANCIAL POSITION DATA ASSETS Current Assets 1120 Cash - Operations $ 81,697 1130 Tenant/Member Accounts Receivable (Coops) 4,376 1131 Allowance for Doubtful Accounts (4,374) 1130N Net Tenant Accounts Receivable 2 1135 Accounts Receivable - HUD 3,876 1145 Accounts and Notes Receivable - Entity Tenants Notes Receivable - EIV 45,948 1160 Accounts Receivable - Interest 854 1200 Prepaid Expenses 27,817 1100T Total Current Assets 160,194 1191 Tenant/Patient Deposits Held in Trust 56,101 Restricted Deposits Held by Mortgagee 1310 Escrow Deposits 165,191 1320 Replacement Reserve 424,470 1340 Residual Receipts Reserve 8,210 1300T Total Deposits 597,871 Fixed Assets 1410 Land 172,710 1420 Buildings 7,929,906 1440 Building Equipment (Portable) 123,167 1450 Furniture for Project/Tenant Use 11,524 1470 Maintenance Equipment 3,932 1480 Motor Vehicles 38,950 1490 Miscellaneous Fixed Assets 463,069 1400T Total Fixed Assets 8,743,258 1495 Accumulated Depreciation (5,534,142) 1400N Net Fixed Assets 3,209,116 1520 Deferred Financing Costs 223,667 1500T Total Other Assets 223,667 1000T Total Assets $ 4,246,949 (continued) -20-

SUPPLEMENTARY INFORMATION REQUIRED BY HUD (CONTINUED) JUNE 30, 2016 SCHEDULE 3 - STATEMENT OF FINANCIAL POSITION DATA (CONTINUED) LIABILITIES AND NET ASSETS (DEFICIT) Current Liabilities 2110 Accounts Payable - Operations $ 46,713 2116 Accounts Payable - Section 8 & Other 45,948 2120 Accrued Wages Payable 17,536 2123 Accrued Management Fee Payable 11,034 2131 Accrued Interest Payable - First Mortgage (or Bonds) 13,725 2170 Mortgage (or Bonds) Payable - First Mortgage (Bonds) (Short Term) 60,890 2174 Other Loans and Notes Payable (Short Term) 28,377 2210 Prepaid Revenue 3,361 2122T Total Current Liabilities 227,584 2191 Tenant/Patient Deposits Held in Trust (Contra) 48,392 Long Term Liabilities 2320 Mortgage (or Bonds) Payable - First Mortgage (or Bonds) 3,488,767 2323 Other Loans and Notes Payable - Surplus Cash 1,331,145 2324 Other Loans and Notes Payable 149,766 2325 Flexible Subsidy Loan Payable 666,125 2300T Total Long Term Liabilities 5,635,803 2000T Total Liabilities 5,911,779 Net Assets (Deficit) 3131 Unrestricted Net Assets (1,664,830) 3130 Total Net Assets (1,664,830) 2033T Total Liabilities and Equity/Net Assets $ 4,246,949-21-

SUPPLEMENTARY INFORMATION REQUIRED BY HUD (CONTINUED) JUNE 30, 2016 SCHEDULE 4 - STATEMENT OF ACTIVITIES DATA Rent Revenue 5120 Rent Revenue - Gross Potential $ 694,258 5121 Tenant Assistance Payments 1,067,546 5170 Garage and Parking Spaces 3,730 5190 Roof Rental Revenue 43,156 5191 Excess Rent 590 5193 Special Claims Revenue 15,605 5100T Total Rent Revenue 1,824,885 Vacancies 5220 Apartments (31,038) 5250 Rental Concessions (52,258) 5290 Miscellaneous (1,321) 5200T Total Vacancies (84,617) 5152N Net Rental Revenue (Rent Revenue Less Vacancies) 1,740,268 Financial Revenue 5410 Financial Revenue - Project Operations 617 5440 Revenue from Investments - Replacement Reserve 5,197 5400T Total Financial Revenue 5,814 Other Revenue 5910 Laundry and Vending Revenue 9,504 5920 Tenant Charges 6,801 5945 Interest Reduction Payments Revenue 201,940 5990 Miscellaneous Revenue 1,013 5900T Total Other Revenue 219,258 5000T Total Revenue 1,965,340 (continued) -22-

SUPPLEMENTARY INFORMATION REQUIRED BY HUD (CONTINUED) YEAR ENDED JUNE 30, 2016 SCHEDULE 4 - STATEMENT OF ACTIVITIES DATA (CONTINUED) Administrative Expenses 6203 Conventions and Meetings $ 10,057 6204 Management Consultants 247 6210 Advertising and Marketing 6,595 6250 Other Renting Expenses 3,273 6310 Office Salaries 63,763 6311 Office Expenses 72,290 6320 Management Fee 129,860 6330 Manager or Superintendent Salaries 87,759 6340 Legal Expense - Project 2,060 6350 Audit Expense 18,342 6351 Bookkeeping Fees/Accounting Services 22,046 6390 Miscellaneous Administrative Expenses 22 6263T Total Administrative Expenses 416,314 Utilities Expenses 6450 Electricity 263,379 6451 Water 71,127 6452 Gas 54,608 6400T Total Utilities Expense 389,114 Operating & Maintenance Expenses 6510 Payroll 63,847 6515 Supplies 21,304 6520 Contracts 63,237 6525 Garbage and Trash Removal 12,165 6530 Security Payroll/Contract 118,752 6546 Heating/Cooling Repairs and Maintenance 44,279 6570 Vehicle and Maintenance Equipment Operation and Repairs 3,010 6590 Miscellaneous Operating and Maintenance Expenses Loss on Disposal of Fixed Assets 2,253 6500T Total Operating and Maintenance Expenses 328,847 (continued) -23-

SUPPLEMENTARY INFORMATION REQUIRED BY HUD (CONTINUED) YEAR ENDED JUNE 30, 2016 SCHEDULE 4 - STATEMENT OF ACTIVITIES DATA (CONTINUED) Taxes & Insurance 6710 Real Estate Taxes $ 12,929 6711 Payroll Taxes (Project's Share) 17,344 6720 Property & Liability Insurance (Hazard) 142,037 6721 Fidelity Bond Insurance 422 6722 Workmen's Compensation 5,583 6723 Health Insurance and Other Employee Benefits 41,205 6790 Miscellaneous Taxes, Licenses, Permits and Insurance 1,305 6700T Total Taxes and Insurance 220,825 Financial Expenses 6820 Interest on First Mortgage (or Bonds) Payable 170,392 6825 Interest on Other Mortgages 6,978 6830 Interest on Notes Payable (Long Term) 2,702 6850 Mortgage Insurance Premium/Service Charge 16,560 6890 Miscellaneous Financial Expense 11 6800T Total Financial Expenses 196,643 6900 Expenses 6900 Nursing Homes/Assisted Living/Board & Care/Other Elderly Care Expenses 26,760 Operating Results 6000T Total Cost of Operations before Depreciation 1,578,503 5060T Profit (Loss) before Depreciation 386,837 6600 Depreciation Expenses 227,422 6610 Amortization Expense 7,780 5060N Operating Profit or (Loss) 151,635 Change in Net Assets from Operations 3247 Change in Unrestricted Net Assets from Operations $ 151,635 3250 Change in Total Net Assets from Operations $ 151,635 S1000-010 Total first mortgage (or bond) principal payments required during the audit period (usually 12 months). This applies to all direct loans, HUD-held and HUD-insured first mortgages. $ 243,595 S1000-020 The total of all monthly reserve for replacement deposits (usually 12 months) required during the audit period even if deposits have been temporarily waived or suspended. $ 58,806-24-

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2016 Federally Guaranteed Loan Federal Balance or CFDA Expenditure of Federal Grantor/Program Title Number Federal Funds Interest Reduction Payment Rental and Cooperative Housing for Lower Income Families 14.103 $ 201,940 Section 8 - Housing Assistance Payments Program 14.195 1,067,546 Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects 14.155 3,549,657 Supportive Housing for the Elderly 14.157 686,708 Total $ 5,505,851 Note: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Corporation and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non- Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The 10% de minimus indirect cost rate does not apply. All programs above are major programs except for Interest Reduction Payment Rental and Cooperative Housing for Lower Income Families Program. The amounts reported for CFDA# 14.155 Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects, $3,549,657, and CFDA# 14.157 Supportive Housing for the Elderly, $686,708, represent the balances of the loans outstanding as of June 30, 2016. There were no additional federal loans or loan guarantees during the year ended June 30, 2016. -25-

INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Members and Trustees Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments Mobile, Alabama We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments (HUD Project No. 062-11117- NP) (the Project), which comprise the statement of financial position as of June 30, 2016, and the related statements of activities, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated September 23, 2016. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Project's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. Accordingly, we do not express an opinion on the effectiveness of the Project's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Project's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Project's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Project's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Project's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Mobile, Alabama September 23, 2016-27-

INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE The Members and Trustees Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments Mobile, Alabama Report on Compliance for Each Major Federal Program We have audited Catholic Housing of Mobile, Inc.'s d/b/a Cathedral Place Apartments (HUD Project No. 062-11117-NP) (the Project) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Project's major federal programs for the year ended June 30, 2016. The Project's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to each of its federal programs. Auditors' Responsibility Our responsibility is to express an opinion on compliance for each of the Project's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Project's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Project's compliance.

Opinion on Each Major Federal Program In our opinion, the Project complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. Report on Internal Control over Compliance Management of the Project is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Project's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Project's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Mobile, Alabama September 23, 2016-29-

SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 A. SUMMARY OF AUDITORS' RESULTS 1. The auditors' report expresses an unmodified opinion on the financial statements of Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments (HUD Project No. 062-11117-NP) (the Project). 2. No material weaknesses were identified during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements of the Project were disclosed during the audit. 4. No material weaknesses were identified during the audit of the major federal award programs. 5. The auditors' report on compliance for the major federal award programs for the Project expresses an unmodified opinion. 6. Audit findings that are required to be reported in accordance with Section 510(a) of the Uniform Guidance are reported in this Schedule. 7. The programs tested as major programs are the Section 8 - Housing Assistance Payments Program, CFDA #14.195, Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects, CFDA #14.155, Supportive Housing for the Elderly, CFDA #14.157. 8. The threshold for distinguishing Types A and B programs was $750,000. 9. The Project was determined to be a low-risk auditee. -30-

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2016 B. FINDINGS - FINANCIAL STATEMENTS AUDIT None C. FINDINGS AND QUESTIONED COSTS - MAJOR AWARDS PROGRAM AUDITS None -31-

SCHEDULE OF THE STATUS OF PRIOR AUDIT FINDINGS, QUESTIONED COSTS, AND RECOMMENDATIONS YEAR ENDED JUNE 30, 2016 The audit for the year ended June 30, 2015, disclosed no findings that were required to be reported under the HUD Consolidated Audit Guide. -32-

OWNERS' CERTIFICATION We hereby certify that we have examined the accompanying financial statements and supplemental data of Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments (HUD Project No. 062-11117-NP) as of June 30, 2016 and, to the best of our knowledge and belief, the same are complete and accurate. Most Reverend Thomas J. Rodi September 23, 2016 Date Msgr. Michael L. Farmer, Vicar General September 23, 2016 Date 23-7122037 EMPLOYER'S IDENTIFICATION NO. -33-

MANAGEMENT AGENT'S CERTIFICATION I hereby certify that I have examined the accompanying financial statements and supplemental data of Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments (HUD Project No. 062-11117-NP) as of June 30, 2016 and, to the best of our knowledge and belief, the same are complete and accurate. By Tim A. Howard, President Royal Management Company, Inc. TIN: 63-1188003 Date September 23, 2016 (The manager for the property is Marvin Dismukes, Jr.) -34-

INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURE The Members and Trustees Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments Mobile, Alabama We have performed the procedure described in the second paragraph of this report, which was agreed to by Catholic Housing of Mobile, Inc. d/b/a Cathedral Place Apartments (HUD Project No. 062-11117-NP) (the Project) and the U.S. Department of Housing and Urban Development, Public Indian Housing-Real Estate Assessment Center (PIH-REAC), solely to assist them in determining whether the electronic submission of certain information agrees with the related hard copy documents included within the OMB Uniform Guidance reporting package. The Project is responsible for the accuracy and completeness of the electronic submission. This agreed-upon procedure engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States. The sufficiency of the procedure is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedure described below either for the purpose for which this report has been requested or for any other purpose. We compared the electronic submission of the items listed in the "UFRS Rule Information" column with the corresponding printed documents listed in the "Hard Copy Documents" column. The results of the performance of our agreed-upon procedure indicate agreement or non-agreement of the electronically submitted information and hard copy documents as shown in the attached chart. We were engaged to perform an audit in accordance with the audit requirements of Title 2 U.S. Code of the Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), by the Project as of and for the year ended June 30, 2016, and have issued our reports thereon dated September 23, 2016. The information in the "Hard Copy Documents" column was included within the scope, or was a by-product of that audit. Further, our opinion on the fair presentation of the supplementary information dated September 23, 2016, was expressed in relation to the basic financial statements of the Project taken as a whole. A copy of the reporting package required by the Uniform Guidance, which includes the auditors' reports, is available in its entirety from the Project. We have not performed any additional auditing procedures since the date of the aforementioned audit reports. Further, we take no responsibility for the security of the information transmitted electronically to the U.S. Department of Housing and Urban Development, PIH- REAC.