Finding 634909 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: Security deposits were not returned within the required 30 days after tenant move-out.
  • Impacted Requirement: Compliance with Section 223(f) HUD Insured Mortgage regulations regarding timely refunds.
  • Recommended Follow-Up: Ensure management maintains communication and processes to meet the 30-day refund requirement moving forward.

Finding Text

Section 223(f) HUD Insured Mortgage ? CFDA 14.155 (Special Tests and Provisions) Conditions and Criteria: The Corporation is required to refund all security deposits within 30 days of tenant move out. The Corporation did return the security deposit in the correct amount; however, it was not returned within 30 days of the tenant move out date. Effect: Security deposit was not returned timely. Cause: This occurred due to an oversight at the Corporation. Auditor?s Recommendation: Communication with management to return security deposit once a tenant has left. Management?s Response: Management has implemented steps to ensure that future security deposit refunds are made within the 30-day requirement.

Categories

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $824,048
14.195 Section 8 Housing Assistance Payments Program $248,917
14.191 Multifamily Housing Service Coordinators $36,403