FAC Explorer

Finding 618078 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-30
Audit: 40169
Organization: Reach Out II Apartments, Inc. (AR)
Auditor: Alexander Thompson Arnold PLLC

AI Summary

  • Issue: Reach Out II Apartments, Inc. failed to collect a required security deposit from a tenant.
  • Impacted Requirement: This non-compliance violates the Uniform Guidance, which mandates security deposits for all tenants.
  • Recommended Follow-Up: Implement stricter controls over the security deposit and move-in process to ensure compliance.

Finding Text

2022-001 Criteria:The Uniform Guidance requires HUD Projects to obtain security deposits from all tenants. Condition:Management of Reach Out II Apartments, Inc. did not obtain a deposit from a tenant who moved in during the year. Effect: Reach Out II Apartments, Inc. is not in compliance with a significant requirement of the Uniform Guidance. Cause: Reach Out II Apartments, Inc.?s controls related to obtaining security deposits were insufficient to prevent and detect the failure to obtain the required deposit. Questions Costs: None. Recommendations: We recommend that Reach Out II Apartments, Inc. put into place more strict controls over the security deposit and move-in process.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 41636 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $930,100
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $76,869