Finding Text
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 061-EH142 and 1987)
Auditor non-compliance code: M - Security Deposits
Finding resolution status: Resolved
Universe population size: 12 months
Sample size information: 2 months
Statistically valid sample: No
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $0
Statement of condition 2024-002: Two of the move-in residents' security deposits tested were not collected timely.
Criteria: Pursuant to the HUD Handbook 4350.3, Chapter 6, the owner must collect a security deposit at the time of the initial lease execution.
Effect: The Corporation is not in compliance with the HUD Handbook 4350.3, Chapter 6.
Cause: Due to the property manager position being vacant, the residents' security deposits were not collected at the execution of the lease.
Recommendation: Management should collect the security deposit at the time of resident move-in.
Management's response: Agree. Management will collect the security deposit at the time of move-in. During the year ended May 31, 2024, the residents' security deposits were collected. There is no further action required.