Finding Text
S3800-010: Finding Reference Number
2023-003 (Significant Deficiency)
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
Owners of insured and assisted multifamily housing projects are required by HUD administrative
guidelines to have a HUD approved Project Owner’s/Management Agent’s Certification for
housing projects managed by Administrators for extremely or very low-income persons (Form
9839-B).
S3800-030: Statement of Condition
During our audit of the Organization’s fiscal year ended December 31, 2023 federal award
program, we noted the Organization did not have a HUD approved Form 9839-B from March 1,
2023 through December 31, 2023.
S3800-032: Cause
The Organization did not submit a request for approval.
S3800-033: Effect or Potential Effect
Management has not been approved to manage the Project for this period.
S3800-035: Auditor Non-Compliance Code:
J – Unauthorized management fees
S3800-040: Questioned Costs
$20,106
S3800-045: Reporting Views of Responsible Officials
Management agrees with the finding.
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 file HUD Form 9839-B immediately. Additionally, the Organization
should ask HUD to retrospectively approve Form 9839-B effective March 1, 2023.
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, 2024
S3800-150: Response
See Corrective Action Plan