Finding Text
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase of Refinancing of Existing Multifamily Housing Projects, Assistance Listing No 14.155 (Project identification number 034-11172, March 2013)
Auditor non-compliance code: M-Security Deposits
Finding resolution status: Resolved
Universe population size: 10
Sample size information: 10
Statistically valid sample: 2
Name of Federal agency: Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2023-001: The Corporation did not refund the security deposit for two residents within 30 days after the move-out date.
Criteria: Pursuant to 6-18 of the HUD Handbook 4350.3 Chapter 6 Lease Requirements and Leasing Activities, residents security deposit refunds should be refunded within 30 days after the move-out date, if the amount is not owed to the Corporation.
Effect: The Corporation is not in compliance with Section 6-18 of the HUD Handbook 4350.3 Chapter 6 Lease Requirements and Leasing Activities.
Cause: Management did not process the refund to two residents timely.
Recommendation: Management should ensure that upon termination of a resident's lease the process for determining security deposit refunds are completed within 30 days of the move-out date.
Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management now has controls in place to ensure processing of security deposit refunds are completed within 30 days of the move-out date.