Wood County Village II, Inc.
HUD Project No. 042-HD102
Audit Firm: GBQ Partners LLC
Audit Period: 07/1/23-06/30/24
CAP Prepared by: Dustin Watkins, CEO
A. Current Findings on the Schedule of Findings, Questioned Costs, and
Recommendations. 2. Finding 2024-002 U.S. Department of Housing and Urban Development
Supportive Housing for Persons with Disabilities (Section 811) – CFDA
14.181; Grant period – Year ended June 30, 2024
a. Comments on the Finding and Each Recommendation.
Statement of Condition: Security deposits assets collected from eligible families and the corresponding liability recorded, did not equal.
Criteria: The HUD Handbook 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs requires that the owner must place security deposits in a segregated, interest bearing-account, the balance of which must at all times be equal to the total amount collected from the eligible family plus any accrued interest.
Cause: The Project experienced a fire in June 2024 that caused a lapse in assigned responsibility for the reconciliation and transfer of security deposits.
Effect of Condition: This Project was not in compliance with the HUD Handbook.
Recommendation: We recommend that the Project’s sponsor verify, on a monthly basis, the required security deposit asset and liability account equal.
b. Action(s) Taken or Planned on the Finding
1. The Project’s sponsor is aware of the requirement to maintain security deposit records.
2. Due to the fire and displacement of tenants, the security deposit account has not been fully reconciled subsequent to year.