Finding 577290 (2023-001)

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Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-10-27

AI Summary

  • Core Issue: A tenant's security deposit refund was delayed, issued 136 days after move-out instead of within the required 30 days.
  • Impacted Requirements: The failure to refund security deposits on time violates the established policy for tenant refunds.
  • Recommended Follow-Up: Ensure ongoing compliance by monitoring security deposit refunds to confirm they are processed within the 30-day timeframe.

Finding Text

Conditions and Criteria: Security deposits are required to be refunded within 30 days of tenant’s move-out date in the appropriate amount. For one item out of two tested, we noted that a tenant moved out April 1, 2023 and the refund was not issued until September 15, 2023. Effect: The tenant did not receive their security deposit refund within 30 days of move-out. Cause: This occurred due to oversight at the property level. Auditors Recommendation: While the refund was given, we do however, recommend that security deposit refunds be returned within 30 days of move-out. Management’s Response: Management has implemented steps to ensure that future security deposit refunds are made within the 30-day requirement.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 848 2023-001
    -

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.81M
14.191 Multifamily Housing Service Coordinators $712,952
14.195 Section 8 Housing Assistance Payments Program $50,999