Finding 1157056 (2025-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2025-09-30

AI Summary

  • Core Issue: Tenant security deposits were underfunded as of June 30, 2025, violating HUD regulations.
  • Impacted Requirements: Security deposits must be kept in a separate bank account, distinct from operational funds.
  • Recommended Follow-Up: Implement internal controls for timely deposit transfers and conduct monthly inspections of the security deposit listings.

Finding Text

Finding 2025-001: Supportive Disabled Housing Section 811 Condition: The tenant security deposit cash was underfunded as of June 30, 2025 Criteria: Security deposits for each tenant are required to be maintained in a separate bank account, apart from those maintained for operations and development. Criteria: Security deposits for each tenant are required to be maintained in a separate bank account, apart from those maintained for operations and development. Effect: The Corporation is no longer in compliance with the rules and regulations regarding tenant security deposits are required by HUD. Recommendation: The Corporation should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with the auditor’s findings. Management has hired additional personnel to review all matters related to tenant compliance.

Corrective Action Plan

United States Department of Housing and Urban Development Thomas Wilbur Homestead, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025: Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2024-6/30/2025 The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: Section 811 Capital Advance Program and Project Rental Assistance Contract ALN#14.181 Recommendation: The Corporation should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Action Taken: Management is in agreement with the auditor’s findings. Management has instructed all accounting personnel to review all matters related to tenant compliance. If the United States Department of Housing and Urban Development has questions regarding this plan, please email Laura Jaworski at laura@thehouseofhopecdc.org.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $36,091