Core Issue: The Organization failed to keep tenants' security deposits in a separate savings account.
Impacted Requirements: This practice does not comply with financial management standards for handling security deposits.
Recommended Follow-Up: Ensure security deposits are maintained in a separate account moving forward to meet compliance requirements.
Finding Text
It was observed during the audit that the Organization does not hold tenants’ security deposits in a separate savings account for a period during the year ended June 30, 2024.
Corrective Action Plan
Rochester Management Inc opened a separate Security Deposit Account in August of 2023. All funds related to tenant securities were deposited into that account. The account has maintained a current balance ever since it opened.