Finding Text
Finding Type - Immaterial noncompliance with major program requirements
Title and Assistance Listing Number of Federal Program - 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f))
Finding Resolution Status - Resolved
Information on Universe and Population Size - The population size was 13, which includes all tenant move outs that occurred during the audit period.
Sample Size Information - A sample size of 2 was determined based on attribute sampling table.
Identification of Repeat Finding and Finding Reference Number - N/A Not a repeat finding
Criteria - HUD requires the Corporation to refund the security deposit to tenants within 30 days of the move out.
Statement of Condition - The Corporation failed to refund the security deposit to a tenant within 30 days of their move out date.
Cause - The Corporation failed to monitor the deposit refund requirements for the security deposits as specified by the regulatory agreement.
Effect or Potential Effect - The tenant did not receive their security deposit refund until 38 days after their move out.
Auditor Noncompliance Code - M Security Deposits
Reporting Views of Responsible Officials - The Corporation agrees with the finding as reported.
Context - During testing of move outs, one instance of security deposit noncompliance was noted.
Recommendation - All security deposit refunds should be made within 30 days of the tenant move out.
Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - The Corporation should implement procedures to ensure the property refunds security deposits within 30 days of move out to remain in compliance with the regulatory agreement with HUD.
Response Indicator - Agree
Completion Date - December 19, 2023
Response - Management acknowledges noncompliance in the current fiscal year and has refunded the security deposit as of December 19, 2023.