Finding 1157324 (2024-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369605
Organization: 201 Thurbers Inc. (RI)

AI Summary

  • Issue: The security deposit account was underfunded by $1,271 due to management oversight.
  • Requirements Impacted: Regulatory agreement mandates that security deposits must be kept in a separate, federally-insured interest-bearing account.
  • Follow-Up: The account has been funded to address the shortfall, and no further action is needed as the auditee agrees with the finding.

Finding Text

Information on the Universe Population Size All regulatory reporting. Sample Size Information All regulatory reporting. Criteria The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally-insured interest-bearing financial institution bank account. Statement of Condition Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity. Cause The cause of the underfunded account was due to management oversight. Effect or Potential Effect The security deposit fund is underfunded by a total of $1,271. Auditor Non-Compliance Code M- Security Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding No Recommendations Auditor recommends that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences. Auditor notes the bank account has been funded to cure the shortfall prior to audit issuance. No further action required. Views of Responsible Officials Auditee agrees with this finding. The bank account has been funded to cure the shortfall prior to audit issuance.

Corrective Action Plan

Security Deposit Funding Auditee agrees that the security deposit liability account is underfunded. We recommend that management funds the shortfall and created a better system of controls to ensure no future occurrences. Auditee plans to evaluate its internal controls and implement policies to mitigate underfunding of the security deposit account and has funded the shortfall. Transfer of $1,271 to security deposit account was made to fully fund the account.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1157323 2024-001
    Material Weakness Repeat
  • 1157325 2024-003
    Material Weakness Repeat
  • 1157326 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $166,765