Finding 1095413 (2022-001)

Finding 2022-001: Section 811 Criteria: Tenant security deposit liability exceeds tenant security deposit cash, with evidence of fund commingling and absence of activity during the fiscal year. Statement of Condition: Tenant security deposit liability exceeds available tenant security deposit cash. Cause: Lack of segregation and proper oversight of tenant security deposit funds. Effect or Potential Effect: Increased risk of financial inaccuracies and regulatory non-compliance. Recommendation: Implement strict segregation of tenant security deposit funds, conduct regular reconciliations, and establish regular record-keeping practices. Management’s Response: We will reconcile our security deposit cash and security liability contra accounts to ensure that cash exceeds the liability.