Audit 358320

S3800-010: Finding Reference Number 2024-001 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for Persons with Disabilities – Section 811 Federal Agency: Department of Housing and Urban Development Assistance Listing #: 14.181 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 78 S3800-018: Sample Size Information 8 S3800-019: Identification of Repeat Finding and Finding Reference Number 2023-001 and 2022-001 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 in compliance with management’s procedures. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2024 federal award program, we noted concerns regarding adherence to compliance requirements with management procedures for work orders and tenant complaints for timely follow-up. Six of the eight samples were not completed in a timely manner. 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 ensuring HUD requirements are being met for residents requesting maintenance of property via management’s procedures. S3800-035: Auditor Non-Compliance Code: I – Failure to maintain property / open physical inspection(s) S3800-040: Questioned Costs N/A S3800-045: Reporting Views of Responsible Officials The Organization will ensure tenants requesting maintenance of property via work orders are being maintained properly and in a timely manner and review the accuracy / completeness of the documentation being processed in the work order system on a quarterly basis. Our Maintenance personnel was off work due to health issues at various times in 2024. One period was for about 6 weeks and the other was for 4 weeks. During this period, April Douglas-Bowers (our Property Manager) would review work orders for urgency and would use a vendor to perform work. Otherwise, our Maintenance personnel worked on open items upon returning to work. S3800-050: Context The Organization is required to be in compliance with provisions in HUD Handbook 4381.5 related to work orders and tenant complaints for timely follow-up. S3800-080: Recommendation The Organization should ensure tenants requesting maintenance of property via work orders are being maintained properly and in a timely manner and review the accuracy / completeness of the documentation being processed in the work order system on a quarterly 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 July 31, 2025 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2024-001 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for Persons with Disabilities – Section 811 Federal Agency: Department of Housing and Urban Development Assistance Listing #: 14.181 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 78 S3800-018: Sample Size Information 8 S3800-019: Identification of Repeat Finding and Finding Reference Number 2023-001 and 2022-001 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 in compliance with management’s procedures. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2024 federal award program, we noted concerns regarding adherence to compliance requirements with management procedures for work orders and tenant complaints for timely follow-up. Six of the eight samples were not completed in a timely manner. 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 ensuring HUD requirements are being met for residents requesting maintenance of property via management’s procedures. S3800-035: Auditor Non-Compliance Code: I – Failure to maintain property / open physical inspection(s) S3800-040: Questioned Costs N/A S3800-045: Reporting Views of Responsible Officials The Organization will ensure tenants requesting maintenance of property via work orders are being maintained properly and in a timely manner and review the accuracy / completeness of the documentation being processed in the work order system on a quarterly basis. Our Maintenance personnel was off work due to health issues at various times in 2024. One period was for about 6 weeks and the other was for 4 weeks. During this period, April Douglas-Bowers (our Property Manager) would review work orders for urgency and would use a vendor to perform work. Otherwise, our Maintenance personnel worked on open items upon returning to work. S3800-050: Context The Organization is required to be in compliance with provisions in HUD Handbook 4381.5 related to work orders and tenant complaints for timely follow-up. S3800-080: Recommendation The Organization should ensure tenants requesting maintenance of property via work orders are being maintained properly and in a timely manner and review the accuracy / completeness of the documentation being processed in the work order system on a quarterly 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 July 31, 2025 S3800-150: Response See Corrective Action Plan