Finding Text
Security Deposits Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Type of Finding: • Other Matter and Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: HUD requires refunds to be disbursed to the former tenant and in the appropriate amount within 30 days of move-out. If no refund is given, the tenant should received an itemized listing of any unpaid rent, damages to the unit, and any estimated cost for repair. Condition: We noted a refund was provided to a tenant 32 days after the tenant’s move-out date. Questioned Costs: None Context: We noted a refund was provided to a tenant 32 days after the tenant’s move-out date. Cause: Management oversight. Effect: The Organization is not in compliance with HUD requirements. Repeat Finding: No Recommendation: The Organization should ensure move-out notifications are provided to the accounting office in a timely manner to ensure the tenant's security deposit is processed and refunded within 30 days of the move out date. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will process the related move-out supporting documentation in a timely manner that will allow for the processing of the security deposit payment within 30 days of the actual move-out date.