Finding 547497 (2024-001)

S3800-010: Finding Reference Number 2024-001 (Material Weakness) S3800-011: Program Information Federal Program: Supportive Housing for Persons with Disabilities (Sec 811) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.181 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Findings: 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 2023-001 S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with generally accepted accounting principles (GAAP). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended June 30, 2024 federal award program, we noted the below concern regarding adherence to compliance requirements: • Supporting documentation to evaluate Special Tests and Provisions for maintenance / work-orders were not available S3800-032: Cause Complete records were not provided by the predecessor management company. S3800-033: Effect or Potential Effect We have not obtained sufficient audit evidence to express an opinion on the accompanying federal award program due to the inability to perform substantive auditing procedures. S3800-035: Auditor Non-Compliance Code Z - Other S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management reported that the failure(s) involved records related to the period managed by the predecessor management company. S3800-050: Context The Organization is required to maintain books and records in accordance with GAAP. The Organization terminated its agreement with the predecessor management agent and the current management agent took over this property on August 25, 2023; therefore work order history records prior to this date were not available. S3800-080: Recommendation We note these non-compliant findings involve records related to the period managed by the predecessor management agent; therefore, we do not have a recommendation regarding the period managed by the predecessor management agent. However, the current management agent should request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement and / or Capital Advance Use Agreement. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date October 31, 2024 S3800-150: Response See Corrective Action Plan