Finding 398563 (2023-001)

S3800-010: Finding Reference Number 2023-001 (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 83 S3800-018: Sample Size Information 9 S3800-019: Identification of Repeat Finding and Finding Reference Number 2022-001 S3800-020: Criteria The 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 via a work order system in compliance with management’s procedures. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 financial statements, we noted that HUD requirements related to housing quality standards were not properly followed. We tested a sample of nine work orders and noted that a proper and efficient work order system was not in place; as the Organization has tenants submit paper maintenance work order request forms, however the maintenance personnel does not on sign / initial each work order as completed, provide the date of their completion, and /or list the work they performed to resolve the tenant request on the work order. Someone places a checkmark on the work order request form with no additional information. 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 the requirements of HUD related to ensuring a properly functioning work order system is in place. 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 via work orders is being maintained properly and efficiently in the work order system and we will review the accuracy / completeness of the documentation being processed in the work order system on a quarterly basis. S3800-050: Context The Organization is required to maintain a properly functioning work order system that demonstrates resolution of tenants requesting maintenance. S3800-080: Recommendation The Organization should adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly and efficiently in the work order system and management is reviewing 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, 2024 S3800-150: Response See Corrective Action Plan