Finding Text
S3800-010: Finding Reference Number
2024-002 (Material Weakness)
S3800-011: Program Information
Federal Program: Supportive Housing for the Elderly - Section 202
Federal Agency: U.S. Department of Housing and Urban Development
Assistance Listing #: 14.157
Pass-through Entity: None
Federal Award Identification Number and Year: N/A
Type of Compliance Finding: E – Eligibility
S3800-015: Type of Finding
Federal Awards
S3800-016: Finding Resolution Status
Unresolved
S3800-017: Information on Universe Population Size
61
S3800-018: Sample Size Information
8
S3800-019: Identification of Repeat Finding and Finding Reference Number
2023-002
S3800-020: Criteria
HUD-subsidized, multifamily housing properties must follow specific guidelines for determining eligibility and establishing and maintaining security deposits for tenants moving out; to determine whether they are in compliance with provisions in the HUD Handbook (4350.3).
S3800-030: Statement of Condition
During our audit of the Organization’s fiscal year ended March 31, 2024 federal award program, we noted the below concerns regarding adherence to compliance requirements
• The Organization did not have the necessary supporting documentation to evaluate security deposits and criminal and background information for three tenants in their files
• The Organization did not have the necessary supporting documentation to evaluate move-outs for two tenants in their files
S3800-032: Cause
The Organization did not follow HUD required procedures for eligibility and security deposits.
S3800-033: Effect or Potential Effect
The Organization was not in compliance with the requirements of HUD related to determining initial eligibility and establishing and maintaining security deposits for tenants moving out. S3800-035: Auditor Non-Compliance Code
M – Security deposits
S3800-040: Questioned Costs
Unknown
S3800-045: Reporting Views of Responsible Officials
Management agrees with the auditor’s finding.
S3800-050: Context
The Organization is required to be in compliance with provisions relating to tenant eligibility and establishing and maintaining security deposits for tenants moving out.
S3800-080: Recommendation
The Organization should follow procedures to ensure tenant eligibility and establishing and maintaining security deposits for tenants moving out and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis.
S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations
Concur
S3800-130: Response Indicator
Agree
S3800-140: Completion Date or Proposed Completion Date
December 31, 2024
S3800-150: Response
See Corrective Action Plan