FAC Explorer

Finding 47870 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-08-13
Audit: 52295
Organization: El Hogar Adventista, Inc. (PR)
Auditor: Jlm & CO LLP

AI Summary

  • Issue: One out of five security deposit refunds was issued late.
  • Requirement: Refunds must be processed within 30 days of tenant move-out, per HUD guidelines.
  • Action Needed: Management Agent should improve processing times for move-out documents to meet HUD deadlines.

Finding Text

Finding No. 2022-001 1. CONDITION ? Late refund of security deposit in one of five refunds examined. 2. CRITERIA ? Refunds of security deposits must be made on or before 30 days after the tenant?s move-out as stated in HUD Handbook 4350.3 Rev. 1, Chapter 6, Section 2, paragraph 6-18. 3. EFFECT ? Noncompliance with HUD?s stipulated requirements related to refund procedures. 4. CAUSE ? Management Agent did not process move-out documentation in a reasonable time period to comply with HUD?s regulations applicable refunds. 5. QUESTIONED COSTS ? None. 6. RECOMMENDATION ? Management Agent must assure that move-out documents for refunds of security deposits be processed within a reasonable time period to comply with HUD?s regulations.

Corrective Action Plan

EL HOGAR ADVENTISTA, INC. CORRECTIVE ACTION PLAN FINANCIAL STATEMENT Fiscal Year May 31, 2022 NAME OF PROJECT: NUMBER OF PROJECT: Ines Maria Mendoza FHA# 056-EE-070 AUDITOR / AUDIT FIRM: Jose Luis Mendoza & Co., LLP FINDING NO. 2022-001 SECURITY DEPOSITS We agree. The late fund occurred on May 27, 2021 and the project operations were still recovering of the Covid-19 lockdown experience. Project Administrator has been advised to follow the procedures as established and is under a monitoring process to avoid non-compliance with the regulations. Combined Building & Housing Consultants, Inc. Management Agent Name of Contact Person: Rebecca Palacios Position: President Combined Building

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Section 202 Capital Advance Program $5.02M
14.195 Section 8 Housing Assistance Payments Program $401,047
14.195 Supplemental Assistance - Hud - Covid-19 $11,495
14.195 Section 202 Special Claim for Vacancies $1,019