FAC Explorer

Finding 384708 (2023-001)

- Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 297826
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.
  • Requirements Impacted: HUD mandates that refunds must be issued promptly, or an itemized list of deductions must be provided.
  • Recommended Follow-up: Address staffing issues in the accounting department to ensure timely processing of refunds and compliance with HUD regulations.

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: Employee turnover and staff shortages in the accounting department. Effect: The Project is not in compliance with HUD requirements. Repeat Finding: Yes

Corrective Action Plan

U.S. Department of Housing and Urban Development 2023-001 Supportive Housing for the Elderly– CFDA No. 14.157 Recommendation: The Project should 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 finding. Management will notify the accounting department of impending move-outs when tenants give notice of moving out. This will provide additional processing time for processing the security deposit payment within 30 days of the actual 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

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 $231,239