Finding Text
S3800-010: Finding Reference Number 2022-003 (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 Management Agent Handbook (4381.5) requires owners of multifamily housing with supportive services for very low-income elderly persons to maintain the mortgaged premises in a decent, safe, sanitary, and good environment. 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 current / active elevator operating certificate issued by the City of Kansas City, Missouri (City of KCMO). S3800-032: Cause During the predecessor management company period, the Organization scheduled an elevator inspection, however it was not conducted by the Registered Elevator Contractor as required by the City of KCMO until November 30, 2022. The inspection failed; therefore, no elevator certificate was available for the fiscal year. S3800-033: Effect or Potential Effect Safety of all persons on premises. 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 reported that its failure to obtain the elevator inspection was during the period of the predecessor management company. Nonetheless, the Organization agrees with the finding and will obtain the necessary elevator certification. 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 obtain the necessary elevator inspection and establish a process to ensure that they keep all necessary forms and licenses 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 June 30, 2023 S3800-150: Response See Corrective Action Plan