Finding Text
S3800-010: Finding Reference Number 2022-004 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 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 10 S3800-018: Sample Size Information 2 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A 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; and 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 December 31, 2022 federal award program, we noted that the Organization did not have the necessary documentation related to security deposits and 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 agreed with the 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 Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2023 S3800-150: Response See Corrective Action Plan