Finding Text
2025-001 Other Matter – Other compliance requirements Condition: Tenant security deposits account Criteria and effect: Interest and forfeited security deposits are required to be moved from the tenant security deposits account to the operating account on an annual basis. Management has not moved excess funds to the operating account causing the account to be overfunded as of December 31, 2025. Cause: The funds were not moved from the tenant security deposits account to the operating account on a timely basis due to an oversight. Questioned costs: None Recommendation: Management should ensure that excess funds are transferred from the tenant security deposits account to the operating account on a timely basis and a minimum once annually. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 26 of this report. Because the security deposit account was fully funded this finding has been reported in the Report on Compliance for each Major RD Program and on Internal Control over Compliance Required by the Consolidated Audit Guide for Audits of RD Programs and the auditor’s report was not modified with respect to this matter.