Finding Text
S3800-010: Finding Reference Number
2023-003 (Significant Deficiency)
S3800-011: Program Information
Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture
(USDA) Assistance Listing #: 10.415
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
126
S3800-018: Sample Size Information
13
S3800-019: Identification of Repeat Finding and Finding Reference Number
N/A
S3800-020: Criteria
7 CFR Part 3560, Rural Housing Service, Department of Agriculture, Direct Multi-Family Housing
Loans and Grants; management agents of multifamily housing are required to follow specific
guidelines and determine requirements are being met for residents requesting maintenance of
property via a maintenance system in compliance with the Management Plan.
S3800-030: Statement of Condition
During our audit of the Organization’s fiscal year ended December 31, 2023 federal awards programs,
we noted that USDA requirements related to maintaining housing projects were not properly followed.
We tested a sample of thirteen maintenance requests and noted that a maintenance system was not in
place, as the Organization doesn’t log the maintenance requests into a system for tracking and
resolution but uses paper maintenance request forms.
S3800-032: Cause
The Organization did not follow USDA required procedures for maintaining housing quality
standards per its Management Plan. S3800-033: Effect or Potential Effect
The Organization was not in compliance with the requirements of USDA related to ensuring a properly
functioning maintenance system is in place to provide decent, safe, and sanitary housing.
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 is being
maintained properly in the maintenance system and we will review the accuracy of the documentation
being processed in the maintenance system on a quarterly basis.
S3800-050: Context
The Organization is required to establish a maintenance system and provide a decent, safe, and
sanitary housing project in accordance with their Management Plan.
S3800-080: Recommendation
The Organization should adopt a policy to ensure tenants requesting maintenance of property is
being maintained properly in the maintenance system and they will review the accuracy of the
documentation being processed in the maintenance 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, 2024
S3800-150: Response
See Corrective Action Plan