FAC Explorer

Finding 25497 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2022-10-31
Audit: 21278
Organization: St. Anne Residence (IL)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Issue: A tenant did not receive their security deposit refund within the required 30 days after moving out.
  • Requirement: HUD mandates that refunds must be issued promptly or an itemized list of deductions provided.
  • Follow-up: Management should improve oversight to ensure compliance with HUD regulations in the future.

Finding Text

Type of Finding: Other Matter. Condition: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date. Criteria or Specific Requirement: HUD requires security deposit 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 an itemized listing of any unpaid rent, damages to the unit, and any estimated cost for repair. Cause: Management oversight. Effect: The Corporation is not in compliance with HUD requirements. Repeat Finding: No

Corrective Action Plan

U.S. Department of Housing and Urban Development 2022-001 Supportive Housing for the Elderly? CFDA No. 14.157 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: Margaret Perine Planned completion date for corrective action plan: In process

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.10M
14.195 Section 8 Housing Assistance Payments Program $209,909