FAC Explorer

Finding 34290 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-05-24
Audit: 32076
Organization: Marywood, INC 051-11178-Np (formerly 051-Eh053-Wah/l8) (VA)
Auditor: Brown Edwards

AI Summary

  • Issue: Two tenants did not receive their security deposits within the required 30 days after moving out.
  • Trend: This oversight indicates a potential pattern of delays in processing security deposit refunds.
  • Follow-up: Management has taken steps to ensure compliance with the 30-day refund requirement moving forward.

Finding Text

Section 223(f) HUD Insured Mortgage - CFDA 14.155 (Special Tests and Provisions) Conditions and Criteria: Two tenants tested moved out on February 7, 2022 and July 30, 2022 and the security deposit refund was issued on March 15, 2022 and October 3, 2022, respectively. Effect: The tenants did not receive their security deposit within 30 days of move-out. Cause: This occurred due to an oversight by management at the property level. Auditor?s Recommendation: While the refund was given, we do however, recommend that security deposit refunds be returned within 30 days of move-out. Management?s Response: Management has implemented steps to ensure that future security deposit refunds are made within the 30 day requirement.

Corrective Action Plan

In conjunction with our audit in accordance with the requirements established by the U.S> Department of Housing and Urban Development, tenant security deposits are required to be returned within 30 days of the tenant's move-out date. However, in performing procedures to ascertain the accuracy of the return of security deposits, we noted the security deposit returned to two tenants were more than 30 days after move-out. We recommend that security deposits be returned within 30 days of the tenant's move-out date. Corrective Action Taken or Planned Management has implemented steps to ensure that the future security deposit refunds are made within the 30 day requirement.

Categories

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.62M
14.191 Multifamily Housing Service Coordinators $41,430
14.195 Section 8 Housing Assistance Payments Program $967