Finding Text
Finding 2024-001: Supportive Elderly Housing Section 202
Condition: The tenant security deposit cash was underfunded as of June 30, 2024
Criteria: Security deposits for each tenant are required to be maintained in a separate bank account, apart
from those maintained for operations and development.
Cause: The Corporation does not have internal controls in place to ensure that tenant security deposits are
transferred on a timely basis from the operating bank account. Effect: The Corporation is no longer in compliance with the rules and regulations regarding tenant security
deposits are required by HUD.
Recommendation: The Corporation should design and implement internal controls to ensure that all security
deposits are transferred in the required time period. Management should also conduct a monthly inspection
of the security deposit listing.
Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with the
auditor’s findings. Management has hired additional personnel to review all matters related to tenant
compliance.