Audit 400436

S3800-010: Finding Reference Number 2025-001 (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 99 S3800-018: Sample Size Information 12 S3800-019: Identification of Repeat Finding and Finding Reference Number 2024-001, 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, 2025 federal award program, we noted concerns regarding adherence to compliance requirements with management procedures for work orders and tenant complaints for timely follow-up. Five of the twelve samples were not completed in a timely manner, including one sample outstanding for three months. 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. Also, for the three of the work orders without signatures, we didn’t talk with our Maintenance man about signing off on work orders until after April 2025’s board meeting. This was completed before the forms were changed so that Chad could sign and add more details. We amended the work order form to accommodate the findings from the 2024 audit. 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, 2026 S3800-150: Response See Corrective Action Plan