Finding Text
S3800-010: Finding Reference Number 2026-003 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Rental and Cooperative Housing Section 221(d)(4) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.135 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 Unknown S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria In accordance with the Regulatory Agreement subsection 7, owners shall maintain the mortgaged premises, accommodations and the grounds… in good repair and condition. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended February 26, 2026 federal award program, we noted that the Organization did not maintain a complete and accurate work order summary report. There were several work orders not entered into the system and only identified after bringing awareness to the Organization regarding missing work orders in certain timeframes. The period of September through December 2025 and any time after February 17, 2026, work orders were not included in the population. S3800-032: Cause Management failed to enter work orders into the FHA system. S3800-033: Effect or Potential Effect The property may not have been maintained in good repair and condition. S3800-035: Auditor Non-Compliance Code: I – Failure to maintain property/open physical inspections S3800-040: Questioned Costs N/A S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to maintain the premises in reasonable condition for proper audit and subject to examination and inspection. S3800-080: Recommendation The Organization shall maintain the premises in reasonable condition for proper audit and subject to examination and inspection. 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 September 30, 2026 S3800-150: Response See Corrective Action Plan