Wood County Village II, Inc.
HUD Project No. 042-HD102
Audit Firm: GBQ Partners LLC
Audit Period: 07/1/22-06/30/23
CAP Prepared by: Donna Jablonski, CEO
A. Current Findings on the Schedule of Findings, Questioned Costs, and
Recommendations.
1. Finding 2023-001 U.S. Department of Housing and Urban Development
Supportive Housing for Persons with Disabilities (Section 811) – CFDA
14.181; Grant period – Year ended June 30, 2023
a. Comments on the Finding and Each Recommendation.
Statement of Condition: Security deposit listing was not updated with the current tenants’ information, including tenants who had moved out, moved in, or changes in the security deposit requirements.
Criteria: The HUD Handbook 4350.3 Occupancy Requirements of
Subsidized Multifamily Housing Programs requires the owner to utilize and refer to its security deposit records.
Cause: The Project’s sponsor and management company experienced turnover in their accounting department during the year which caused a shift in assigned duties and responsibilities. During that shift in assigned duties there was a lapse in assigned responsibility for the transfer of security deposits.
Effect of Condition: This condition resulted in the improper maintenance of security deposit records of the Project, resulting In possible unidentified noncompliance with HUD regulatory provisions.
Recommendation: We recommend that the Project’s sponsor strengthen its internal control review function over security deposits to ensure the security deposit listing is properly maintained.
b. Action(s) Taken or Planned on the Finding
1. The Project’s sponsor is aware of the requirement to maintain security deposit records.
2. In August 2023, the management company reconciled the account and has put in place measures to ensure that tenant security deposit account is maintained moving forward.