Finding 624312 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-08-13
Audit: 52295
Organization: El Hogar Adventista, Inc. (PR)
Auditor: Jlm & CO LLP

AI Summary

  • Issue: One out of five security deposit refunds was issued late.
  • Requirement: Refunds must be processed within 30 days of tenant move-out, per HUD guidelines.
  • Action Needed: Management Agent should improve processing times for move-out documents to meet HUD deadlines.

Finding Text

Finding No. 2022-001 1. CONDITION ? Late refund of security deposit in one of five refunds examined. 2. CRITERIA ? Refunds of security deposits must be made on or before 30 days after the tenant?s move-out as stated in HUD Handbook 4350.3 Rev. 1, Chapter 6, Section 2, paragraph 6-18. 3. EFFECT ? Noncompliance with HUD?s stipulated requirements related to refund procedures. 4. CAUSE ? Management Agent did not process move-out documentation in a reasonable time period to comply with HUD?s regulations applicable refunds. 5. QUESTIONED COSTS ? None. 6. RECOMMENDATION ? Management Agent must assure that move-out documents for refunds of security deposits be processed within a reasonable time period to comply with HUD?s regulations.

Categories

HUD Housing Programs Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Section 202 Capital Advance Program $5.02M
14.195 Section 8 Housing Assistance Payments Program $401,047
14.195 Supplemental Assistance - Hud - Covid-19 $11,495
14.195 Section 202 Special Claim for Vacancies $1,019