EBENEZER LAKES SENIOR HOUSING DBA: MEADOW VIEW APARTMENTS HUD PROJECT NO. 092-EE115 FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

HUD PROJECT NO. 092-EE115 FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

HUD PROJECT NO. 092-EE115 TABLE OF CONTENTS AUDITOR DISCLOSURE INFORMATION 1 INDEPENDENT AUDITORS REPORT 2 FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF OPERATIONS 5 STATEMENT OF CHANGES IN NET ASSETS 6 STATEMENT OF CASH FLOWS 7 NOTES TO FINANCIAL STATEMENTS 8 SUPPORTING DATA REQUIRED BY HUD 12 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 20 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 21 INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 23 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 25 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 26 MORTGAGOR S CERTIFICATION 27 MANAGEMENT AGENT S CERTIFICATION 28

(HUD PROJECT NO. 092-EE115) AUDITOR DISCLOSURE INFORMATION DECEMBER 31, 2017 INDEPENDENT AUDITOR CliftonLarsonAllen LLP AUDIT PRINCIPAL Matt Wocken OFFICE ADDRESS 220 South Sixth Street; Suite 300 Minneapolis, MN 55402-1436 TELEPHONE NUMBER (612) 376-4500 FEDERAL I.D. # 41-0746749 (1)

CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS REPORT Board of Directors Ebenezer Lakes Senior Housing dba: Meadow View Apartments Wyoming, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of Ebenezer Lakes Senior Living dba: Meadow View Apartments, HUD Project No. 092-EE115, which comprise the statement of financial position as of December 31, 2017, and the related statement of operations and changes in net assets, and cash flows for the year then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; 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 audit. We conducted our audit 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 entity 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 entity 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. (2)

Board of Directors Ebenezer Lakes Senior Housing dba: Meadow View Apartments Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ebenezer Lakes Senior Housing dba: Meadow View Apartments HUD Project No. 092-EE115, as of December 31, 2017, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. 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 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 schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is also presented for purposes of additional analysis and is not a required part of the basic financial statements. The supporting information required by HUD and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such 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 May 30, 2018, on our consideration of Ebenezer Lakes Senior Housing dba: Meadow View Apartments (HUD Project No. 092-EE115), 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 result 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 Ebenezer Lakes Senior Housing dba: Meadow View Apartments (HUD Project No. 092-EE115), internal control over financial reporting and compliance. CliftonLarsonAllen LLP Minneapolis, Minnesota May 30, 2018 (3)

HUD PROJECT NO. 092-EE115 STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2017 ASSETS CURRENT ASSETS Cash $ 545 Accounts Receivable, Net 39,685 Prepaid Expenses 171 Total Current Assets 40,401 ASSETS LIMITED AS TO USE Reserves for Replacement and Residual Receipts 152,905 Tenant Security Deposits 12,764 Total Assets Limited as to Use 165,669 PROPERTY AND EQUIPMENT Land and Improvements 319,793 Buildings 3,506,441 Furnishings 30,742 Total Property and Equipment 3,856,976 Less: Accumulated Depreciation 819,320 Total Property and Equipment 3,037,656 Total Assets $ 3,243,726 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable - Operations $ 3,521 Accrued Property Taxes Payable 9,653 Due to Related Parties 188,573 Accrued Management Fee Payable 1,632 Prepaid Revenue 4,944 Total Current Liabilities 208,323 TENANT SECURITY DEPOSITS 12,774 Total Liabilities 221,097 NET ASSETS Unrestricted 260,924 Temporarily Restricted 2,761,705 Total Net Assets 3,022,629 Total Liabilities and Net Assets $ 3,243,726 See accompanying Notes to Financial Statements. (4)

HUD PROJECT NO. 092-EE115 STATEMENT OF OPERATIONS REVENUE Net Rental Income $ 177,512 Interest Income 41 Other Revenue 6,126 Total Revenue 183,679 EXPENSE Administrative 129,654 Utilities 29,116 Operating and Maintenance 51,369 Taxes and Insurance 47,196 Depreciation 93,758 Total Expense 351,093 DEFICIT OF REVENUE OVER EXPENSE (167,414) NET ASSETS RELEASED FROM RESTRICTION 84,976 CHANGE IN UNRESTRICTED NET ASSETS (82,438) Unrestricted Net Assets - Beginning of Year 343,362 UNRESTRICTED NET ASSETS - END OF YEAR $ 260,924 See accompanying Notes to Financial Statements. (5)

HUD PROJECT NO. 092-EE115 STATEMENT OF CHANGES IN NET ASSETS Temporarily Unrestricted Restricted Total BALANCE - JANUARY 1, 2017 $ 343,362 $ 2,846,681 $ 3,190,043 Net Assets Released From Restrictions 84,976 (84,976) - Deficit of Revenue Over Expense (167,414) - (167,414) BALANCE - DECEMBER 31, 2017 $ 260,924 $ 2,761,705 $ 3,022,629 See accompanying Notes to Financial Statements. (6)

EBENEZER LAKES ASSISTED LIVING HUD PROJECT NO. 092-EE115 STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES Deficit of Revenue Over Expense $ (167,414) Adjustments to Reconcile Deficit of Revenue Over Expense to Net Cash Used by Operating Activities: Depreciation 93,758 Change in Current Assets and Current Liabilities: Accounts Receivable 14,681 Prepaid Expenses and Other Current Assets 1,012 Accounts Payable (4,368) Accrued Liabilities (1,310) Net Cash Used by Operating Activities (63,641) CASH FLOWS FROM INVESTING ACTIVITIES Net Change in Reserve for Replacements (13,276) Net Change in Other Reserve 1,776 Net Cash Used by Investing Activities (11,500) CASH FLOWS FROM FINANCING ACTIVITIES Increase in Related Party Payable 70,019 Net Cash Provided by Financing Activities 70,019 DECREASE IN CASH AND CASH EQUIVALENTS (5,122) Cash - Beginning of Year 5,667 CASH - END OF YEAR $ 545 See accompanying Notes to Financial Statements. (7)

HUD PROJECT NO. 092-EE115 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2017 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Ebenezer Lakes Senior Housing (the Project), is a nonprofit, tax-exempt organization operating a 32-unit apartment project in Wyoming, Minnesota The Project operates under the provisions of Section 202 of the National Housing Act. Section 202 Projects are regulated by U.S. Department of Housing and Urban Development (HUD) as to its operating methods. The Project is also subject to Project Rental Assistance agreements with the U.S. Department of Housing and Urban Development and a portion of the Project s rental income is received from HUD. Housing assistance payments received totaled $57,160 for the year ended December 31, 2017. The Project s manager is Ebenezer Society, a nonprofit corporation that is also its sole member. Income Taxes The Project is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and applicable Minnesota Statutes. Consequently, no provision has been made for income taxes. The Project s annual tax filings are subject to review by federal, state, and local authorities. The Project is not aware of any activities that would jeopardize its tax-exempt status. The Project is not aware of any activities that are subject to tax on unrelated business income or excise other taxes. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Basis of Presentation Net assets of the Project and changes therein are classified and reported as follows: Unrestricted Those resources over which the board of directors has discretionary control. Designated amounts represent those revenues that the board has set aside for a particular purpose. Temporarily Restricted Those resources subject to donor imposed restrictions that will be satisfied by actions of the Project or passage of time. Permanently Restricted Those resources subject to a donor imposed restriction that they be maintained permanently by the Project. As of December 31, 2017 there were no permanently restricted net assets. (8)

HUD PROJECT NO. 092-EE115 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2017 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Net Resident Service Revenue Resident service revenue includes rent, room charges, and ancillary services to residents of the senior housing apartment. Cash The Project maintains cash balances at various financial institutions, which at various times during the year may exceed the FDIC threshold of $250,000. Accounts Receivable Accounts receivable are carried at the original charge for the services. Management believes that all receivables are collectible at the original charge and has not recorded an allowance for doubtful accounts. Assets Limited as to Use Assets limited as to use consist of escrows required by the HUD Section 202 capital advance which are limited to use in accordance with the requirements of the regulatory agreement. The Project also holds in trust, security deposit amounts received by tenants of the Project upon move-in. Property and Equipment Property and equipment with an original cost at or above one thousand dollars is recorded at cost for purchased assets or fair value at date of receipt of donated assets. Depreciation is computed over the estimated useful lives of the assets using the straight-line method. The following useful lives are used in computing depreciation: Buildings and Improvements Furnishings and Equipment 7 40 Years 5 20 Years Functional Expense Expenditures made for corporate purposes have been summarized in the statement of operations as administrative and the remaining expenses were incurred in connection with Project operations. Subsequent Events In preparing these financial statements, the Project has considered events and transactions that have occurred through May 30, 2018, the date the financial statements were available to be issued. (9)

HUD PROJECT NO. 092-EE115 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2017 NOTE 2 ASSETS LIMITED AS TO USE Assets limited as to use consist of funds held in accordance with the HUD regulatory agreement and funds held for tenants and residents. These funds are as follows at December 31, 2017: Description Amount Reserve for Replacement - The Project is required to make monthly deposits into two escrow accounts to assure the availability of funds to replace building components, and furniture and equipment. Withdrawals from these funds require HUD approval. $ 141,671 Tenant Security Deposit - The Project holds in trust, security deposit amounts received from the tenants of the Project upon move-in. 12,764 Residual Receipts - The Project is required to deposit surplus cash from operations into a Residual Receipts account and cannot make withdrawals without HUD approval. 11,234 Total $ 165,669 At December 31, 2017, assets limited as to use are invested in cash and cash equivalents. NOTE 3 RELATED PARTY TRANSACTIONS Ebenezer Management Service, an affiliate of the project, manages the Project s rental property. Property management fees are incurred pursuant to a management agreement based on 11.4% of rent and service revenue collections. Fees under this agreement totaled $19,380 for the year ended December 31, 2017. The project owed $1,632 in accrued management fees at December 31, 2017. The Project is related to Ebenezer Society through common control and management. Expenses charged to income paid on behalf of the Project for payroll amounted to $90,923 for the year ended December 31, 2017. The Project had an outstanding payable to Ebenezer Society of $188,573 at December 31, 2017. NOTE 4 TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets for the year ended December 31, 2017 consist solely of the Section 202 HUD Capital Advance, net of releases. Management has elected to recognize a portion of the Section 202 HUD Capital Advance over 40 years, the term of the advance. The Section 202 HUD Capital Advance for the year ended December 31, 2017 had an outstanding balance of $3,412,600, net of $650,895 in accumulated releases. For the year ended December 31, 2017, $84,976 was released from temporarily restricted net assets to unrestricted. (10)

HUD PROJECT NO. 092-EE115 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2017 NOTE 5 COMMITMENTS AND CONTINGENCIES Litigation The Project is subject to asserted and unasserted claims encountered in the normal course of business. The Project s management and legal counsel assess such contingent liabilities and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Project or unasserted claims that may result in such proceedings, the Project s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. In the opinion of management, disposition of these matters will not have a material effect on the Project s financial condition or results of operations. Health Care Industry The health care industry is subject to numerous laws and regulations of federal, state, and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government s health care program participation requirements, reimbursement for resident services, and Medicare and Medicaid fraud and abuse. Recently, government activity has increased with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by health care providers. Violations of these laws and regulations could result in expulsion from government health care programs together with the imposition of significant fines and penalties, as well as significant repayments for resident services previously billed. (11)

(HUD PROJECT NO. 092-EE115) SUPPORTING DATA REQUIRED BY HUD STATEMENT OF FINANCIAL POSITION Account Number ASSETS CURRENT ASSETS 1120 Cash $ 545 1130 Accounts Receivable - Residents and Tenants 2,914 1135 Accounts Receivable - HUD 36,771 1200 Prepaid Expenses 171 1100T Total Current Assets 40,401 1191 TENANT SECURITY DEPOSITS 12,764 ASSETS LIMITED AS TO USE 1320 Replacement Reserve 141,671 1340 Residual Receipts 11,234 1300T Total Assets Limited as to Use 152,905 PROPERTY AND EQUIPMENT 1410 Land and Land Improvements 319,793 1420 Building and Improvements 3,506,441 1450 Furniture for Project/Tenant Use 30,742 1400T Total Property and Equipment 3,856,976 1495 Less: Accumulated Depreciation 819,320 1400N Total Property and Equipment, Net 3,037,656 1000T Total Assets $ 3,243,726 (12)

(HUD PROJECT NO. 092-EE115) SUPPORTING DATA REQUIRED BY HUD STATEMENT OF FINANCIAL POSITION (CONTINUED) Account Number LIABILITIES AND NET ASSETS CURRENT LIABILITIES 2110 Accounts Payable - Operations $ 3,521 2113 Due to Related Party 188,573 2123 Accrued Management Fee Payable 1,632 2150 Accrued Property Taxes Payable 9,653 2210 Prepaid Revenue 4,944 2122T Total Current Liabilities 208,323 2191 TENANT SECURITY DEPOSITS 12,774 2000T Total Liabilities 221,097 NET ASSETS 3131 Unrestricted 260,924 3132 Temporarily Restricted 2,761,705 3130 Total Net Assets 3,022,629 2033T Total Liabilities and Net Assets $ 3,243,726 (13)

(HUD PROJECT NO. 092-EE115) SUPPORTING DATA REQUIRED BY HUD STATEMENT OF PROFIT AND LOSS Account Number REVENUE 5120 Rent Revenue - Gross Potential $ 124,149 5121 Tenant Assistance Payments 57,160 5100T Total Rental Income 181,309 Vacancies: 5220 Apartments (3,797) 5200T Total Vacancies (3,797) 5152N Net Rental Revenue 177,512 5430 Revenue from Investments - Residual Receipts 1 5440 Revenue from Investments - Replacement Reserve 40 5400T Total Financial Revenue 41 5990 Miscellaneous Revenue (See Schedule) 6,126 5900T Total Other Revenue 6,126 5000T Total Revenue 183,679 EXPENSES 6311 Office Expenses 5,193 6320 Management Fee 19,380 6330 Salaries 90,923 6340 Legal Expense 495 6350 Audit Expense 7,072 6370 Bad Debt Expense 1,719 6390 Miscellaneous Administrative Expenses (See Schedule) 4,872 6263T Total Administrative Expenses 129,654 6450 Electricity 16,658 6451 Water 8,823 6452 Gas 3,635 6400T Total Utilities Expense 29,116 6520 Contracts 2,094 6525 Garbage and Trash Removal 2,018 6548 Snow Removal 5,100 6590 Miscellaneous Operating and Maintenance Expense (See Schedule) 42,157 6500T Total Operating and Maintenance Expenses 51,369 (14)

(HUD PROJECT NO. 092-EE115) SUPPORTING DATA REQUIRED BY HUD STATEMENT OF PROFIT AND LOSS (CONTINUED) Account No. EXPENSES (CONTINUED) 6710 Real Estate and Personal Property Taxes $ 41,004 6720 Property and Liability Insurance (Hazard) 4,735 6723 Health Insurance and Other Employee Benefits 175 6790 Miscellaneous Taxes and Insurance 1,282 6700T Total Taxes and Insurance 47,196 6000T Total Cost of Operations Before Depreciation and Amortization 257,335 5060T Change in Net Assets Before Depreciation and Amortization (73,656) 6600 Depreciation Expenses (See Schedule) 93,758 5060N/3247 Operating Loss and Changes in Net Assets $ (167,414) S1100-060 Previous Year Unrestricted Net Assets $ 343,362 3247 Change in Unrestricted Net Assets from Operations (167,414) S1100-065 Net Assets Released from Restrictions - Operations 84,976 3131 Unrestricted Net Assets $ 260,924 S1100-070 Previous Year Temporarily Restricted Net Assets $ 2,846,681 S1100-075 Net Assets Released from Restrictions - Operations (84,976) 3132 Temporarily Restricted Net Assets $ 2,761,705 S1100-050 Previous Year Total Net Assets $ 3,190,043 3250 Change in Total Net Assets from Operations (167,414) S1100-055 Other Changes in Total Net Assets - 3130 Total Net Assets $ 3,022,629 (15)

(HUD PROJECT NO. 092-EE115) SUPPORTING DATA REQUIRED BY HUD STATEMENT OF CASH FLOWS Account Number CASH FLOWS FROM OPERATING ACTIVITIES Receipts: S1200-010 Rental Receipts $ 193,318 S1200-020 Interest Receipts 41 S1200-030 Other Operating Receipts 6,126 S1200-040 Total Receipts 199,485 Disbursements: S1200-050 Administrative 19,351 S1200-070 Management Fees 19,380 S1200-090 Utilities 29,116 S1200-100 Salaries and Wages 90,923 S1200-110 Operating and Maintenance 56,308 S1200-120 Real Estate Taxes 41,856 S1200-140 Property Insurance 4,735 S1200-150 Miscellaneous Taxes and Insurance 1,457 S1200-230 Total Disbursements 263,126 S1200-240 Net Cash Used by Operating Activities (63,641) CASH FLOWS FROM INVESTING ACTIVITIES S1200-250 Net Deposits to Reserve for Replacements (13,276) S1200-255 Net Withdrawals to Other Reserve 1,777 S1200-260 Net Deposits to Residual Receipts (1) S1200-350 Net Cash Used by Investing Activities (11,500) CASH FLOWS FROM FINANCING ACTIVITIES S1200-370 Change in Related Party Payable 70,019 S1200-460 Net Cash Provided by Financing Activities 70,019 S1200-470 NET DECREASE IN CASH AND CASH EQUIVALENTS (5,122) S1200-480 Cash - Beginning of Year 5,667 S1200T CASH - END OF YEAR $ 545 (16)

(HUD PROJECT NO. 092-EE115) SUPPORTING DATA REQUIRED BY HUD STATEMENT OF CASH FLOWS (CONTINUED) Account Number RECONCILIATION OF DEFICIT OF REVENUE OVER EXPENSE TO NET CASH USED BY OPERATING ACTIVITIES 3250 Deficit of Revenue Over Expense $ (167,414) Adjustments to Reconcile Deficit of Revenue Over Expense to Net Cash Used by Operating Activities: 6600 Depreciation 93,758 Change in Current Assets and Current Liabilities: S1200-490 Accounts Receivable 14,681 S1200-520 Prepaid Expenses 1,012 S1200-540 Accounts Payable (4,368) S1200-560 Other Accrued Liabilities (1,310) S1200-610 Net Cash Used by Operating Activities $ (63,641) SUPPLEMENTAL SCHEDULE OF STATEMENT OF ACTIVITIES Line 5990 "Miscellaneous Revenue" Other Miscellaneous Revenue 6,126 Total Miscellaneous Revenue $ 6,126 Line 6390 "Miscellaneous Adminstration Expenses" Miscellaneous Expense 4,872 Total Elderly and Congregate Services Expense $ 4,872 Line 6590 "Miscellaneous Operating and Maintenance Expenses" Repairs and Maintenance $ 39,239 Other Miscellaneous Operating and Maintenance Expenses 2,918 Total Miscellaneous Operating and Maintenance Expenses $ 42,157 Line 6600 "Depreciation" Land Improvements $ 1,879 Building and Improvements 91,879 Total Depreciation $ 93,758 (17)

(HUD PROJECT NO. 092-EE115) SUPPORTING DATA REQUIRED BY HUD RESERVE FOR REPLACEMENTS In accordance with provisions of the regulatory agreement, cash is deposited into separate bank accounts to be used for the replacement of property and equipment and various other uses. Disbursements from this account require prior written approval from HUD. Current year activity was as follows: Reserve for Replacements Balance, January 1, 2017 $ 128,395 Required Deposits 13,236 Interest Earned 40 Balance, December 31, 2017 $ 141,671 RESIDUAL RECEIPTS Receipts Balance, January 1, 2017 $ 11,233 Interest Earned 1 Balance, December 31, 2017 $ 11,234 COMPUTATION OF SURPLUS CASH DECEMBER 31, 2017 Current Assets: Cash - Operations $ 545 HUD Tenant Receivables 36,771 Tenant Security Deposits 12,764 Total Current Assets $ 50,080 Current Liabilities: Accounts Payable - Operations 3,521 Prepaid Rent 4,944 Accrued Management Fee 1,632 Accounts Payable - Related Party 188,573 Tenant Security Deposits 12,774 Total Current Liabilities 211,444 Cash Surplus (Deficit) at December 31, 2017 $ (161,364) (18)

(HUD PROJECT NO. 092-EE115) SUPPORTING DATA REQUIRED BY HUD SCHEDULE OF CHANGE IN PROPERTY AND EQUIPMENT Assets January 1, December 31, 2017 Additions Transfers 2017 Land and Improvements $ 319,793 $ - $ - $ 319,793 Building and Improvements 3,506,441 - - 3,506,441 Furniture and Equipment 30,742 - - 30,742 Total $ 3,856,976 $ - $ - $ 3,856,976 Accumulated Depreciation Net Book Value January 1, December 31, December 31, 2017 Additions Deductions 2017 2017 Land and Improvements $ 9,842 $ 1,879 $ - $ 11,721 $ 308,072 Building and Improvements 685,112 91,879-776,991 2,729,450 Furniture and Equipment 30,608 - - 30,608 134 Total $ 725,562 $ 93,758 $ - $ 819,320 $ 3,037,656 SUPPLEMENTAL DATA Account Number S1000-010 Total Mortgage Principal Payments Required During the Audit Year $ - S1000-020 Total of 12 Monthly Deposits in the Audit Year into the Replacement Reserve Account, as Required by the Regulatory Agreement even if Payments may be Temporarily Suspended or Reduced $ 13,236 S1000-030 Replacement Reserve, or Residual Receipts and Releases which are Included as Expense Items on the Statement of Profit and Loss $ - S1000-040 Project Improvement Reserve Releases under the Flexible Subsidiary Program that are Included as Expense Items on the Statement of Profit and Loss $ - 1320R Waiver Obtained for Deposits into Replacement Reserve No (19)

(HUD PROJECT NO. 092-EE115) SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Federal Federal Federal Grantor/Pass-Through Grantor/Program Title CFDA No. Expenditures U.S. Department of Housing and Urban Development: Section 202 Capital Advance 14.157 $ 3,412,600 Section 8 Housing Assistance Payments 14.182 57,160 $ 3,469,760 NOTE: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Project under programs of the federal government for the year ended December 31, 2017. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Section 202 HUD Capital Advance had an outstanding balance of $3,412,600 at December 31, 2017. (20)

CliftonLarsonAllen LLP CLAconnect.com 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 Board of Directors Ebenezer Lakes Senior Housing dba: Meadow View Apartments Wyoming, Minnesota We have audited, in accordance with the 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 Ebenezer Lakes Senior Housing dba: Meadow View Apartments, HUD Project No. 092-EE115 (the Project), which comprise the statement of financial position as of December 31, 2017, and the related statements of operations, changes in net assets, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated May 30, 2018. 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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit the attention by those charged with goverance. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. (21)

Board of Directors Ebenezer Lakes Senior Housing dba: Meadow View Apartments 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 result of that testing, and not to provide an opinion on the effectiveness of the entity 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 entity s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Minneapolis, Minnesota May 30, 2018 (22)

CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Board of Directors Ebenezer Lakes Senior Housing dba: Meadow View Apartments Wyoming, Minnesota Report on Compliance for Each Major Federal Program We have audited Ebenezer Lakes Senior Housing dba: Meadow View Apartments, HUD Project No. 092-EE115 s (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 December 31, 2017. 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 federal statutes, regulations, and the terms and conditions of its federal awards applicable to 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 December 31, 2017. (23)

Board of Directors Ebenezer Lakes Senior Housing dba: Meadow View Apartments 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. CliftonLarsonAllen LLP Minneapolis, Minnesota May 30, 2018 (24)

HUD PROJECT NO. 092-EE115 SCHEDULE OF FINDINGS AND QUESTIONED COSTS A. SUMMARY OF AUDIT RESULTS 1. The auditors report expresses an unmodified opinion on the financial statements of Ebenezer Lakes Senior Housing. 2. No material weaknesses were identified during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements of Ebenezer Lakes Senior Housing were disclosed during the audit. 4. No material weaknesses or significant deficiencies were identified during the audit of the major federal award programs. 5. The auditors report on compliance for the major federal award programs for Ebenezer Lakes Senior Housing expresses an unmodified opinion. 6. There are no audit findings relative to the major federal program for Ebenezer Lakes Senior Housing to report in this schedule. 7. The program tested as a major program was CFDA 14.157 - Section 202 HUD Capital Advance 8. The threshold for distinguishing Type A and B programs was $750,000. 9. Ebenezer Lakes Senior Housing was determined to be a low-risk auditee. B. FINDINGS FINANCIAL STATEMENTS AUDIT No findings C. FINDINGS MAJOR FEDERAL AWARD PROGRAMS AUDIT NONE (25)

HUD PROJECT NO. 092-EE115 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS PRIOR AUDIT FINDINGS FINANCIAL STATEMENTS AUDIT NONE PRIOR AUDIT FINDINGS MAJOR FEDERAL AWARD PROGRAM AUDIT NONE (26)

HUD PROJECT NO. 092-EE115 MORTGAGOR S CERTIFICATION DECEMBER 31, 2017 We hereby certify that we have examined the foregoing financial statements and supplemental information of Ebenezer Lakes Senior Housing dba: Meadow View Apartments (HUD Project No. 092- EE115) and, to the best of our knowledge and belief, the same are complete and accurate. Todd Willett, CFO Date Jon Lundberg, President Date Employer Identification Number: 41-1964691 (27)

HUD PROJECT NO. 092-EE115 MANAGEMENT AGENT S CERTIFICATION DECEMBER 31, 2017 We hereby certify that we have examined the foregoing financial statements and supplemental information of Ebenezer Lakes Senior Housing dba: Meadow View Apartments (HUD Project No. 092- EE115) and, to the best of our knowledge and belief, the same are complete and accurate. Ebenezer Society Date Todd Willett, CFO Management Agent s Employer Identification Number: 41-1964691 (28)