Finding Text
Finding Type - Immaterial noncompliance with major program requirements Title and CFDA Number of Federal Program - 14.155 - U.S. Department of Housing and Urban Development - Mortgage Insurance for Refinancing of Existing Multifamily Rental Housing (Section 223(f)) Finding Resolution Status - Resolved Information on Universe and Population Size - The population size was nine, which includes all tenant move outs that occurred during the audit period. Sample Size Information - A sample size of two was determined based on attribute sampling table. Identification of Repeat Finding and Finding Reference Number - N/A - not a repeat finding Criteria - HUD requires the Corporation to refund the security deposit for tenants within 30 days of the move-out date. Statement of Condition - The Corporation failed to refund the security deposit for one tenant within 30 days of the move out date. Cause - The Corporation failed to refund the security deposit for one tenant within 30 days of the move out date due to turnover of the property manager. Effect or Potential Effect - The tenant did not receive the security deposit refund until 293 days after the move-out date. Auditor Noncompliance Code - M - Security Deposits Reporting Views of Responsible Officials - The Corporation agreed with the finding as reported. Context - The Corporation failed to return the security deposit for one tenant within 30 days of the move out date. Recommendation - All security deposit refunds should be made within 30 days of the tenant move-out. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management acknowledged the error that occurred during the year ended December 31, 2022 and has taken measures to change the process of issuing refunds to reduce the likelihood of late refunds. Response Indicator - Agree Completion Date - February 17, 2023 Response - Management acknowledges the issue related to timely refund of the tenant security deposit. Management plans to change the process of issuing refunds to reduce the likelihood of late refunds.