Finding 618900 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-18

AI Summary

  • Core Issue: The Organization failed to follow HUD's housing quality standards, specifically regarding the maintenance work order system.
  • Impacted Requirements: Compliance with the Management Agent Handbook (4381.5) for maintaining a proper work order system for tenant maintenance requests.
  • Recommended Follow-up: Implement a policy to ensure proper maintenance of the work order system and conduct quarterly reviews of documentation accuracy by June 30, 2023.

Finding Text

S3800-010: Finding Reference Number 2022-001 (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 Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size 86 S3800-018: Sample Size Information 9 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A 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, 2022 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 work order system was not in place, as the Organization doesn?t keep a log, but paper maintenance work order request forms. 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 in the work order system and we will review the accuracy of the documentation being processed in the work order system on a quarterly basis. S3800-050: Context The Organization is required to maintain a work order system. S3800-080: Recommendation The Organization should adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly in the work order system and management is reviewing the accuracy 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 June 30, 2023 S3800-150: Response See Corrective Action Plan

Categories

HUD Housing Programs Reporting Significant Deficiency Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 42458 2022-001
    Significant Deficiency
  • 42459 2022-002
    Significant Deficiency
  • 618901 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $34,578