Finding 22622 (2022-002)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2022-12-19

Audit: 17873

Organization: Parc Residential Options, Inc., Project No. 072-Hd045 (IL)

Auditor: Cliftonlarsonallen

AI Summary

Core Issue: A tenant did not receive their security deposit refund within the required 30 days after moving out.
Impacted Requirements: This violates HUD's requirement for timely disbursement of security deposits and proper communication regarding any deductions.
Recommended Follow-up: Implement stronger internal controls to ensure compliance and prevent recurrence of this issue.

Finding Text

Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: HUD requires security deposits 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 receive and itemized listing of any unpaid rent, damages to the unit, and any estimated cost for repair. Condition: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date.. Questioned Costs: None Context: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date. Cause: Management oversight. Effect: The corporation is not in compliance with HUD requirements. Repeat Finding: Yes. Prior year finding 2021-004

Corrective Action Plan

2022-002 Section 811 ? New Construction ? Capital Advance Program ? Supportive Housing for Persons with Disabilities ? CFDA No. 14.181 Recommendation: To establish proper internal control over security deposit refunds, the Corporation should design and implement the necessary procedures to ensure the move-out notifications are provided to the accounting office in a timely manner and ensure the tenant's security deposit is processed and 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 monitor future move-outs 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: Debbie Congdon Planned completion date for corrective action plan: In process

Other Findings in this Audit

22621 2022-001

Significant Deficiency Repeat
599063 2022-001

Significant Deficiency Repeat
599064 2022-002

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$978,000
14.195	Section 8 Housing Assistance Payments Program	$29,911