Finding Text
Federal Award Findings and Questioned Costs U.S. Department of Housing and Urban Development Finding No. 2023-001- Supportive Housing for the Elderly, Assistance Listing 14.157 Criteria HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Condition As of September 30, 2023, management has not fully funded the tenant security deposits cash account. The tenant security deposits cash account was underfunded by $1,712. Cause Delays with opening segregated accounts with bank. Effect or Potential Effect Management commingled tenant security deposits with its operating cash and did not have sufficient cash balance in the tenant security deposits cash account to cover the tenant security deposits liability as of September 30, 2023. Questioned Costs $1,712. Context In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Identification as a Repeat Finding No Recommendation Management should transfer $1,712 from the operating account in order to fully fund the tenant security deposits account. Auditor Noncompliance Code N - Special Tests and Provisions D - Commingling of funds Finding Resolution Status: In process Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted.