Finding 1172146 (2025-002)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2025
Accepted
2026-02-03
Audit: 385295
Organization: Philadelphia Booth Manor II (PA)

AI Summary

  • Core Issue: The resident security deposit account is short by $1187, failing to meet HUD and PRAC requirements.
  • Impacted Requirements: Compliance with PRAC regulations mandates that security deposits must be fully funded in a separate account.
  • Recommended Follow-Up: Management should transfer $1187 to the account and monitor it regularly to ensure compliance.

Finding Text

S2700-006 - Finding Resolution Status - In Process; S2700-007 - Information on Universal Population Size - N/A; S2700-008 - Sample Size Informatino - N/A; S2700-009 - Noncompliance Information - N/A; S2700-010 - Statement of Condition - At September 30 2025, the resident security deposit account did not equal or exceed the deposits collected from residents by $1187; S2700-020 - Criteria - Pursuant to the requirements of the PRAC, the Company is required to comply with all HUD regulations and other requirements. PRAC regulations and State laws require resident security deposits to be funded in a separate account in an amount no less than the amount of security deposits received from residents; S2700-030 - Effect or Potential Effect - The Company is not in compliance with the terms of the PRAC. Failure to fully fund the security deposit account could result in the inability to return security deposits to residents upon lease terminations; S2700-040 - Cause - Management did not transfer sufficient funds to the security deposit account in order to equal or exceed the liability listing; S2700-050 - Recommendation - management should transfer $1187 to the security deposit account and closely monitor the liability listing to ensure that the asset account is adequately funded; S2700-055 - Auditor Non-Compliance Code - M; S2700-065 - Amount of Questioned Costs - $1187; S2700-100 - Reporting Views of Responsible Officials - Agree; S2700-070 - Concur or Do Not Concur with this Finding - Concurs; S2700-075 - Agree or Disagree with auditor recommendations - Agrees; S2700-080 - Completion Date or Proposed Completion Date - 09/30/2026; S2700-090 - Actions Taken or Planned on the Finding - The security deposit discrepancy will be rectified.

Corrective Action Plan

The security deposit discrepancy will be rectified

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 1172145 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.35M
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $177,592