A security guard is preparing an incident report for an injury sustained by a contractor on site. The contractor admits fault but also mentions a broken handrail that contributed to the fall. What should the report include regarding the cause?

1. A recommendation for disciplinary action against the contractor for negligence.
2. Only the broken handrail to highlight a safety deficiency and potential liability.
3. Only the contractor's admission of fault to avoid implying site negligence.
4. Both the contractor's admission of fault and the observation of the broken handrail, presented as factual findings.