S3800-010: Finding Reference Number 2022-001 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status In Process S3800-017: Information on Universe Population Size Unknown; 276 with predecessor management company S3800-018: Sample Size Information 25 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The HUD Management Agent Handbook (4381.5) requires owners of multifamily housing to follow specific guidelines and determine requirements are being met for residents requesting maintenance of property via a work order system in compliance with management?s procedures. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that HUD requirements related to housing quality standards were not properly followed. We tested a sample of eighteen work orders from the predecessor management company and noted compliance. However, we noted that a work order system was not in place for the new management company as of September 1, 2022. The property manager was not inputting work orders in the system until January 2023. S3800-032: Cause The Organization did not follow HUD required procedures for housing quality standards. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to ensuring a properly functioning work order system is in place. S3800-035: Auditor Non-Compliance Code S ? Internal control deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to maintain a work order system. S3800-080: Recommendation The Organization should adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly in the work order system and management is reviewing the accuracy of the documentation being processed in the work order system on a periodic basis. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-002 (Significant Deficiency) S3800-011: Program Information Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD Form-9250, Funds Authorizations, requires the Organization to deposit $2,613 for January ? August 2022 and $2,673 for September ? December 2022 into the replacement reserve account on a monthly basis. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted the Organization failed to make the required monthly deposits into the reserve for replacement account for twelve months. The Organization deposited $2,557 for all twelve months as opposed to the approved $2,613 for eight months and $2,673 for the last four months. S3800-032: Cause The Organization deposited an incorrect amount into the reserve for replacement account, cause unknown. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement to make required monthly deposits into the reserve for replacement account. S3800-035: Auditor Non-Compliance Code N ? Reserve for replacements deposits S3800-040: Questioned Costs $912 S3800-045: Reporting Views of Responsible Officials Management agreed with the finding. S3800-050: Context The Organization deposited $30,684 onto the reserve for replacement account during the year ended December 31, 2022. The Organization was required to deposit $31,596 for the year, per Missouri Housing Development Commission (HUD?s designee). S3800-080: Recommendation The Organization should deposit the shortfall of $912 into the reserve for replacement account as soon as possible and ensure the process is being followed to deposit and reconcile the reserve for replacement account on a monthly basis. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-003 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The HUD Management Agent Handbook (4381.5) requires owners of multifamily housing with supportive services for very low-income elderly persons to maintain the mortgaged premises in a decent, safe, sanitary, and good environment. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that the Organization did not have a current / active elevator operating certificate issued by the City of Kansas City, Missouri (City of KCMO). S3800-032: Cause During the predecessor management company period, the Organization scheduled an elevator inspection, however it was not conducted by the Registered Elevator Contractor as required by the City of KCMO until November 30, 2022. The inspection failed; therefore, no elevator certificate was available for the fiscal year. S3800-033: Effect or Potential Effect Safety of all persons on premises. S3800-035: Auditor Non-Compliance Code I ? Failure to maintain property / open physical inspection(s) S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management reported that its failure to obtain the elevator inspection was during the period of the predecessor management company. Nonetheless, the Organization agrees with the finding and will obtain the necessary elevator certification. S3800-050: Context The Organization is required to have all of its necessary forms and licenses current and up to date. S3800-080: Recommendation The Organization should obtain the necessary elevator inspection and establish a process to ensure that they keep all necessary forms and licenses current and up to date. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-004 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E - Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 10 S3800-018: Sample Size Information 2 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD-subsidized, multifamily housing properties must follow specific guidelines for determining eligibility and establishing and maintaining security deposits for tenants moving out; and determine whether they are in compliance with provisions in the HUD Handbook (4350.3). S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that the Organization did not have the necessary documentation related to security deposits and move-outs for two tenants in their files. S3800-032: Cause The Organization did not follow HUD required procedures for eligibility and security deposits. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to determining initial eligibility and establishing and maintaining security deposits for tenants moving out. S3800-035: Auditor Non-Compliance Code M ? Security deposits S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agreed with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant eligibility and establishing and maintaining security deposits for tenants moving out. S3800-080: Recommendation The Organization should follow procedures to ensure tenant eligibility and establishing and maintaining security deposits for tenants moving out and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-005 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E ? Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 36 S3800-018: Sample Size Information 8 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD-subsidized, multifamily housing properties must follow specific guidelines for accepting applications, managing the waiting list, determining initial eligibility, determining a tenant?s rent and subsidy, recertifying tenants annually; and determine whether they are in compliance with provisions in the HUD Handbook (4350.3). S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that the Organization was not able to provide eight sample files for the applicants selected from the wait list and those denied admission. We also noted the Organization did not have the necessary documentation related to eligibility for two tenants in their files. S3800-032: Cause The Organization did not follow HUD required procedures for tenant application, eligibility, and recertification. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to accepting applications, managing the waiting list, determining initial eligibility, determining a tenant?s rent and subsidy, and recertifying the information annually. S3800-035: Auditor Non-Compliance Code R ? Section 8 program administration S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agreed with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant application, eligibility, and recertification. S3800-080: Recommendation The Organization should follow procedures to ensure applicant and tenant eligibility and recertification is being maintained properly and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-001 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status In Process S3800-017: Information on Universe Population Size Unknown; 276 with predecessor management company S3800-018: Sample Size Information 25 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The HUD Management Agent Handbook (4381.5) requires owners of multifamily housing to follow specific guidelines and determine requirements are being met for residents requesting maintenance of property via a work order system in compliance with management?s procedures. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that HUD requirements related to housing quality standards were not properly followed. We tested a sample of eighteen work orders from the predecessor management company and noted compliance. However, we noted that a work order system was not in place for the new management company as of September 1, 2022. The property manager was not inputting work orders in the system until January 2023. S3800-032: Cause The Organization did not follow HUD required procedures for housing quality standards. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to ensuring a properly functioning work order system is in place. S3800-035: Auditor Non-Compliance Code S ? Internal control deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to maintain a work order system. S3800-080: Recommendation The Organization should adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly in the work order system and management is reviewing the accuracy of the documentation being processed in the work order system on a periodic basis. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-002 (Significant Deficiency) S3800-011: Program Information Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD Form-9250, Funds Authorizations, requires the Organization to deposit $2,613 for January ? August 2022 and $2,673 for September ? December 2022 into the replacement reserve account on a monthly basis. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted the Organization failed to make the required monthly deposits into the reserve for replacement account for twelve months. The Organization deposited $2,557 for all twelve months as opposed to the approved $2,613 for eight months and $2,673 for the last four months. S3800-032: Cause The Organization deposited an incorrect amount into the reserve for replacement account, cause unknown. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement to make required monthly deposits into the reserve for replacement account. S3800-035: Auditor Non-Compliance Code N ? Reserve for replacements deposits S3800-040: Questioned Costs $912 S3800-045: Reporting Views of Responsible Officials Management agreed with the finding. S3800-050: Context The Organization deposited $30,684 onto the reserve for replacement account during the year ended December 31, 2022. The Organization was required to deposit $31,596 for the year, per Missouri Housing Development Commission (HUD?s designee). S3800-080: Recommendation The Organization should deposit the shortfall of $912 into the reserve for replacement account as soon as possible and ensure the process is being followed to deposit and reconcile the reserve for replacement account on a monthly basis. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-003 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The HUD Management Agent Handbook (4381.5) requires owners of multifamily housing with supportive services for very low-income elderly persons to maintain the mortgaged premises in a decent, safe, sanitary, and good environment. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that the Organization did not have a current / active elevator operating certificate issued by the City of Kansas City, Missouri (City of KCMO). S3800-032: Cause During the predecessor management company period, the Organization scheduled an elevator inspection, however it was not conducted by the Registered Elevator Contractor as required by the City of KCMO until November 30, 2022. The inspection failed; therefore, no elevator certificate was available for the fiscal year. S3800-033: Effect or Potential Effect Safety of all persons on premises. S3800-035: Auditor Non-Compliance Code I ? Failure to maintain property / open physical inspection(s) S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management reported that its failure to obtain the elevator inspection was during the period of the predecessor management company. Nonetheless, the Organization agrees with the finding and will obtain the necessary elevator certification. S3800-050: Context The Organization is required to have all of its necessary forms and licenses current and up to date. S3800-080: Recommendation The Organization should obtain the necessary elevator inspection and establish a process to ensure that they keep all necessary forms and licenses current and up to date. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-004 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E - Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 10 S3800-018: Sample Size Information 2 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD-subsidized, multifamily housing properties must follow specific guidelines for determining eligibility and establishing and maintaining security deposits for tenants moving out; and determine whether they are in compliance with provisions in the HUD Handbook (4350.3). S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that the Organization did not have the necessary documentation related to security deposits and move-outs for two tenants in their files. S3800-032: Cause The Organization did not follow HUD required procedures for eligibility and security deposits. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to determining initial eligibility and establishing and maintaining security deposits for tenants moving out. S3800-035: Auditor Non-Compliance Code M ? Security deposits S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agreed with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant eligibility and establishing and maintaining security deposits for tenants moving out. S3800-080: Recommendation The Organization should follow procedures to ensure tenant eligibility and establishing and maintaining security deposits for tenants moving out and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan
S3800-010: Finding Reference Number 2022-005 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E ? Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 36 S3800-018: Sample Size Information 8 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD-subsidized, multifamily housing properties must follow specific guidelines for accepting applications, managing the waiting list, determining initial eligibility, determining a tenant?s rent and subsidy, recertifying tenants annually; and determine whether they are in compliance with provisions in the HUD Handbook (4350.3). S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that the Organization was not able to provide eight sample files for the applicants selected from the wait list and those denied admission. We also noted the Organization did not have the necessary documentation related to eligibility for two tenants in their files. S3800-032: Cause The Organization did not follow HUD required procedures for tenant application, eligibility, and recertification. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to accepting applications, managing the waiting list, determining initial eligibility, determining a tenant?s rent and subsidy, and recertifying the information annually. S3800-035: Auditor Non-Compliance Code R ? Section 8 program administration S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agreed with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant application, eligibility, and recertification. S3800-080: Recommendation The Organization should follow procedures to ensure applicant and tenant eligibility and recertification is being maintained properly and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan