Finding Text
2024-003. Tenant Accounts Receivable
Criteria:
Under the terms of the annual contributions contract, each project shall be developed and administered to promote efficiency, economy and stability.
Condition:
I noted tenant accounts receivable at year end was $72,324 (excluding vacated and tenants who have signed a repayment agreement) which represents 110% of the total charges for the month of September 2024.
Questioned Costs:
None noted.
Effect:
The continuing growth in tenant accounts receivable is a threat to maintaining a financially solvent operation. Without proper rent collection, current operating expenses cannot be paid.
Cause:
The Authority did not effectively enforce its rent collection policy resulting in a significant amount being owed to the Authority.
Recommendation:
I recommend that the Authority place greater emphasis on the collection of all outstanding balances.
Management’s Response:
We have new personnel in place to assist Mr. Carmona with rent collection and securing repayment agreements on all arrearages. This will take care if the finding this fiscal year and in years to come.