Finding Text
S3800-010: Finding Reference Number 2025-003 (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 Handbook 4381.5, REV-2, CHG-2, The Management Agent Handbook requires owners of multifamily housing with supportive services for very low-income elderly persons to maintain the mortgaged premises in decent, safe, sanitary conditions. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2025 federal award program, we noted that the Organization did not have a current elevator operating certificate issued by the City of Kansas City, Missouri after March 1, 2026. S3800-032: Cause An elevator inspection was performed on December 30, 2025 which identified various safety concerns and failed items, in which the Organization has to repair. Therefore, the Organization is unable to obtain a current elevator certification until these services are restored. During this period the elevator was still in use. S3800-033: Effect or Potential Effect Safety of all persons on premises and elevators may not be safe to use. 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 agrees with the finding. S3800-050: Context The Organization is required to have all of its necessary forms, licenses, and certifications current and up to date. S3800-080: Recommendation In general, the Organization should establish a process to ensure that they keep all necessary forms, licenses, and certifications 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 July 31, 2026 S3800-150: Response See Corrective Action Plan