Finding Text
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's security deposit liability account was underfunded at June 30, 2025. Criteria: The Project should have a security deposit cash balance in excess of the security deposit liability balance. Effect: The security deposit account was underfunded by $522. Context: The security deposit funding was tested at June 30, 2025. No sample was tested. Questioned costs - None; Cause: Management failed to recognize that the security deposit liability account was underfunded at June 30, 2025. Recommendation: The Project should carefully review the statement of financial position to make sure the security deposit liability account is funded. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will be reminded to review the tenant security deposit cash balance versus the security deposit liabilty balance on a monthly basis. Total-Department of Housing and Urban Development - None; Non-compliance code - M