Finding 1155767 (2025-001)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
$1
Year
2025
Accepted
2025-09-29

AI Summary

  • Core Issue: A security deposit refund of $407 was delayed for 180 days after a tenant moved out, violating HUD guidelines.
  • Impacted Requirements: HUD Handbook 4350.3 mandates that security deposits must be refunded within 30 days of tenant move-out.
  • Recommended Follow-Up: Ensure timely disbursement of security deposits in the future to avoid non-compliance, especially during staffing transitions.

Finding Text

ALN title and number (Federal award identification number and year): Supportive Housing for the Elderly, CFDA 14.157 (102-EE022-WAH) Auditor non-compliance code: M – Security Deposits Finding resolution status: Resolved Universe population size: 12 months Sample size information: 2 months Noncompliance information: See statement of condition #2025-001. Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $407 Statement of condition 2025-001: A tenant moved out on February 26, 2025, and was owed a security deposit of $407. The disbursement was not made until August 25, 2025, 180 days after move out. Criteria: Pursuant to HUD Handbook 4350.3, Paragraph 6-18 C, owners must refund the security deposit no later than 30 days after the tenant moves out. Effect or potential effect: The Corporation is not in compliance with the HUD Management Agent Handbook (4350.1). Cause: The management agent did not disburse the refund due to oversight during a staffing transition. Recommendation: The management agent should disburse $407 from the security deposit cash account to the former tenant. Completion Date: August 25, 2025 Reporting views of responsible officials: Agree. The management agent refunded $407 to the former tenant on August 25, 2025.

Corrective Action Plan

Statement of condition #2025-001: A tenant moved out on February 26, 2025, and was owed a security deposit of $407. The disbursement was not made until August 25, 2025, 180 days after move out. Comments on the Finding and Each Recommendation: The management agent should disburse $407 from the security deposit cash account to the former tenant. Action(s) taken or planned on the finding: The management agent refunded $407 to the former tenant on August 25, 2025.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1155766 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $181,065