Finding 39989 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
$1
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: A tenant did not receive their security deposit refund within the required 30 days after moving out.
  • Impacted Requirements: Security deposits must be refunded to tenants within 30 days of move-out, as mandated by federal guidelines.
  • Recommended Follow-Up: Management should implement a review process for tenant move-outs to ensure timely refunds of security deposits.

Finding Text

2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Section 223(f) HUD Insured Mortgage ALN: 14.155 Award Period: 2022 Type of Finding: Significant Deficiency Condition: The Organization did not refund a tenant their security deposit within 30 days of move-out. Criteria: Security deposits must be refunded to the tenant within 30 days of moving out. Questioned costs: $374 Context: During eligibility testing, it was determined that one tenant, out of six tenant move-outs tested, did not receive their security deposit refund within 30 days of moving out. Effect: Security deposit was not refunded to a tenant within 30 days of move-out. Cause: The Organization failed to ensure proper review and oversight of tenant move-outs. Recommendation: We recommend that management review tenant move-outs to ensure timely refund of any security deposits owed. Views of Responsible Officials: Executive management agrees with this finding, and has provided additional training to employees responsible for processing move outs. Repeat Finding: No

Corrective Action Plan

Views of Responsible Officials: Executive management agrees with this finding, and has provided additional training to employees responsible for processing move outs.

Categories

Questioned Costs Eligibility HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 616431 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $6.26M
14.157 Supportive Housing for the Elderly $2.43M
14.195 Section 8 Housing Assistance Payments Program $1.64M