Finding 498386 (2024-002)

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Requirement
N
Questioned Costs
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Year
2024
Accepted
2024-09-26
Audit: 321126
Organization: Opendoors Housing LLC (RI)
Auditor: D'ambra CPA

AI Summary

  • Answer: The security deposit for Section 8 Rental Assistance is underfunded by $336.
  • Trend: This issue arose due to management oversight in funding requirements.
  • List: Management plans to transfer funds from the operating account to correct the underfunding.

Finding Text

Federal program - Section 8 Rental Assistance: Criteria - HUD regulations require the security deposits to be fully funded; Condition - the security deposit cash is underfunded by $336; Cause - management oversight; Recommendation - management should transfer funds from the operating account to the security deposit account to fully fund the escrow. Response: Management will transfer sufficient funds to fully fund the deposits.

Corrective Action Plan

Review the current status of the security deposit account to confirm the underfunding amount and document findings. Initiate a transfer of $336 from the operating account to the security deposit account to rectify the underfunding issue. Document the transfer process and update financial records to reflect the corrected funding status. Provide a report to management confirming the action taken. Conduct a review of existing procedures related to security deposit funding to identify potential areas for improvement and prevent future underfunding. Develop and implement a monitoring system to regularly check funding levels in the security deposit account, ensuring compliance with HUD regulations. Organize a training session for relevant staff on HUD requirements regarding security deposits and the importance of maintaining proper funding levels.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.265 Rural Capacity Building for Community Development and Affordable Housing Grants $850,000
14.239 Home Investment Partnerships Program $500,000
14.195 Section 8 Housing Assistance Payments Program $166,109