NCR OF WATERFORD HOUSING DEV FUND CO. D/B/A VAN SCHOONHOVEN SQUARENon-Profit

Finding Type - Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program - 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)). Finding Resolution Status - None Information on Universe and Population Size - The Corporation had 7 move outs during the fiscal year. Sample Size Information - A sample size of 2 move outs were tested for the year ended August 30, 2023. Identification of Repeat Finding and Finding Reference Number - N/A - not a repeat finding. Criteria - HUD requires the Corporation to refund the security deposit to tenants within 30 days of the move out. Statement of Condition - For one of the two samples, the Corporation failed to refund the security deposit to a tenant within 30 days of their move out date. The security deposit was refunded 37 days after the tenant's move out date. Cause - The Corporation failed to monitor the deposit refund requirements for the security deposits as specified by the regulatory agreement. Effect or Potential Effect - The tenant did not receive their security deposit refund until 37 days after their move out. Auditor Noncompliance Code - M - Security Deposits Recommendation - All security deposits should be made within 30 days of the tenant move-out. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management acknowledged the errors that occurred during the year ended August 31, 2023 and has taken measures to change their process of issuing refunds to reduce the likelihood of late refunds. Response Indicator - None Completion Date - February 7, 2023 Response - The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are refunded timely.