Audit 36917

S3800-010: Finding Reference Number 2022-001 (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 Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size 81 S3800-018: Sample Size Information 9 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The 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 financial statements, we noted that HUD requirements related to housing quality standards were not properly followed. We tested a sample of nine work orders and noted that a work order system was not in place, as the Organization doesn?t keep a log, but paper maintenance work order request forms. 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 The Organization will adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly in the work order system and we will review the accuracy of the documentation being processed in the work order system on a quarterly basis. 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 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 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: 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 Finding S3800-016: Finding Resolution Status In-progress 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 Per the HUD Handbook 4381.5, REV-2, CHG-2, Management Agents of insured and assisted multifamily housing projects are required by HUD administrative guidelines to have a HUD approved Project Owner's / Management Agent?s Certification for Multifamily Housing Projects for very low-income persons with disabilities (Form 9839-B). 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 HUD approved Form 9839-B; the last effective date was August 31, 2014. S3800-032: Cause Form 9839-B was expired in 2014 and the Organization failed to obtain an approved HUD Form 9839-B since then. S3800-033: Effect or Potential Effect Charges for management fees for the fiscal year were not authorized. S3800-035: Auditor Non-Compliance Code: J ? Unauthorized management fee S3800-040: Questioned Costs $8,991 S3800-045: Reporting Views of Responsible Officials The Organization agreed with this finding. 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 establish a process to ensure they have obtained all required HUD approved forms. Additionally, the Organization should ask HUD to retrospectively approve Form 9839-B effective September 1, 2014. S2700-090: 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 (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 Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size 81 S3800-018: Sample Size Information 9 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The 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 financial statements, we noted that HUD requirements related to housing quality standards were not properly followed. We tested a sample of nine work orders and noted that a work order system was not in place, as the Organization doesn?t keep a log, but paper maintenance work order request forms. 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 The Organization will adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly in the work order system and we will review the accuracy of the documentation being processed in the work order system on a quarterly basis. 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 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 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: 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 Finding S3800-016: Finding Resolution Status In-progress 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 Per the HUD Handbook 4381.5, REV-2, CHG-2, Management Agents of insured and assisted multifamily housing projects are required by HUD administrative guidelines to have a HUD approved Project Owner's / Management Agent?s Certification for Multifamily Housing Projects for very low-income persons with disabilities (Form 9839-B). 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 HUD approved Form 9839-B; the last effective date was August 31, 2014. S3800-032: Cause Form 9839-B was expired in 2014 and the Organization failed to obtain an approved HUD Form 9839-B since then. S3800-033: Effect or Potential Effect Charges for management fees for the fiscal year were not authorized. S3800-035: Auditor Non-Compliance Code: J ? Unauthorized management fee S3800-040: Questioned Costs $8,991 S3800-045: Reporting Views of Responsible Officials The Organization agreed with this finding. 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 establish a process to ensure they have obtained all required HUD approved forms. Additionally, the Organization should ask HUD to retrospectively approve Form 9839-B effective September 1, 2014. S2700-090: 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