Financial Audit Services and Tax Return Filing

Questions & Answers

Financial Audit Services and Tax Return Filing

Solicitation No: InSight - 10052026

The RFP requests financial statement audits for fiscal years ended 12/31/2022, 12/31/2023, 12/31/2024, 12/31/2025, and 12/31/2026. Could you provide additional background regarding the outstanding audit years? Specifically:

Why are the 2022 through 2025 audits outstanding? What factors contributed to the delay in completing these audits? Could you please provide additional context regarding the circumstances that resulted in the 2022-2025 audits remaining outstanding and any significant challenges encountered during those periods? These questions pertain to a confidential matter. The vendor chosen for the contract will receive this information upon commencement of work.

Are there any known accounting, reporting, compliance, or governance issues that a prospective auditor should be aware of when evaluating the scope of the engagement? IHA is currently under HUD receivership

Are there any regulatory, lender, investor, board, or other stakeholder deadlines applicable to the overdue audit reports? Yes - HUD, the State of Indiana, and relevant property investors.

Were audits for any of these years previously commenced, substantially completed, or issued in draft form? No

The RFP notes that the standard audit timeline does not apply to the prior-year audits. However, we were unable to identify a separate milestone schedule for the catch-up audits. Could you clarify:

Is the objective to bring all audit years current as quickly as possible, or is there a specific priority order among the years? What is the organization's overall target date for becoming current on all outstanding audits: We are working to complete bring all audit years current as quickly as possible.

Are the years expected to be completed sequentially or concurrently? Sequentially

Could you provide copies of the most recent available audited financial statements for:

InSight Development Corporation - Provided

InSight Development Corporation Multifamily Properties (if applicable) - Provided

If audited financial statements are not available for certain years, could you identify:

The most recent year for which audited financial statements were issued;

The accounting firm that performed the most recent audit;

Whether any draft financial statements, trial balances, or prior audit workpapers are available; and

The current status of the financial statements for each outstanding audit year.

SEE TABLE BELOW

Could you clarify the anticipated responsibilities related to financial statement preparation for each audit year included in the engagement?

Will management prepare the draft financial statements and note disclosures for all audit years? No. Management has provided draft income statements, balance sheets, trial balances, and detailed general ledgers. However, management will not prepare the complete draft financial statements and note disclosures for all audit years.

If financial statement preparation assistance is expected from the selected audit firm, please describe the extent of assistance anticipated. The selected audit firm is expected to assist with organizing financial data, preparing account balances, developing supporting schedules, and drafting the financial statements and related note disclosures as necessary.

Does the organization anticipate engaging the auditor to perform financial statement preparation as a non-attest service? Yes. The organization anticipates engaging the selected audit firm to provide financial statement preparation assistance as a non-attest service, subject to applicable auditor independence requirements. Management will retain responsibility for the financial statements and related decisions.

For the outstanding audit years, are draft financial statements, trial balances, account reconciliations, and supporting schedules already available, or will these need to be developed as part of the engagement? For properties managed by third-party property management companies, the financial records and supporting documentation are available. However, for properties managed directly by IHA, the financial systems and records are currently being reconstructed following the ransomware incident. The availability of the required financial statements, trial balances, account reconciliations, and supporting schedules for these properties will be determined as the reconstruction process progresses. Additional records and schedules may need to be developed as part of the engagement.

END OF QUESTIONS & ANSWERS - OCTOBER 13, 2026