Finding Text
Criteria: Within 30 days after the move-out date, the owner must refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease.
Condition: During our Testing of Move-Outs, the following tenant’s security deposit was not refunded within 30 days after the move-out date:
Effect: The Project did not follow the HUD directive regarding refunding the security deposit within 30 days after the move-out date.
Cause: Due to the turnover of the Management Agent and Property Management Staff, there was a lack of internal control in performing security deposit refunds within 30 days after move-out.
Recommendation: We recommend that the Project follow the HUD directive regarding refunding tenant security deposit within 30 days after move-out.
Views of Responsible Officials and Corrective Action Plan: No disagreements with the audit finding.