FAC Explorer

Finding 1661 (2023-002)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-11
Audit: 2892
Organization: Heritage Fields, Inc. (IL)
Auditor: McK CPAS & Advisors

AI Summary

  • Core Issue: A security deposit was not refunded within the required 30 days after move-out.
  • Impacted Requirements: HUD mandates timely refunds of security deposits to ensure compliance.
  • Recommended Follow-Up: Implement monthly reviews of the security deposit spreadsheet to ensure timely refunds.

Finding Text

Security Deposits U.S. Department of Housing and Urban Development - Section 811 - Assistance Listing Number 14.181 Criteria or specific requirement: HUD requires security deposits to be paid back within 30 days after move out date. Condition: We noted one security deposit that was not refunded within the 30-day requirement. Questioned Costs: None. Context: During the process of testing security deposits, it was noted that a security deposit was not refunded within the required time period. Effect: Inadequate controls over the security deposit process may result in an improper amount being paid. Cause: The Organization’s personnel inadvertently did not update or review the security deposit spreadsheet. Repeat finding: No. Recommendation: We recommend reviewing the security deposit spreadsheet monthly and refunding security deposits as soon as possible after the move out date. View of responsible officials and planned corrective actions: Management is aware of the situation and has implemented additional controls over the refunding of security deposits.

Corrective Action Plan

U. S. Department of Housing and Urban Development Heritage Fields, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: MCK CPAs & Advisors, Decatur, Illinois. Audit period: Year ended June 30, 2023. The findings from the June 30, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. U.S. Department of Housing and Urban Development:Supportive Housing for Persons with Disabilities Program (Section 811), Assistance Listing # 14.181: Recommendation: The security deposit spreadsheet should be reviewed and updated monthly and security deposits refunded within 30 days of the move-out date. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will review and update the security deposit spreadsheet to ensure the security deposits are processed and refunded within 30 days of the move-out date. Name(s) of the contact person(s) responsible for corrective action: Mary Garrison Planned completion date for corrective action plan: In process If the Department of Housing and Urban Development has questions regarding this plan, please call Mary Garrison, Heritage Fields, Inc. at (217) 362-6262.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $67,795