Finding Text
2025-001 Criteria: The Corporation is required to hold tenant security deposits in a separate account. Condition: The Corporation did not maintain a sufficient balance in the security deposit account to cover the related security deposit liabilities. Cause:T he Corporation did not have procedures in place to ensure that the security deposit account maintained a sufficient balance. Effect: The Corporation was not in compliance with the requirements of Housing and Urban Development Multifamily Housing Programs. Auditor’s Recommendation: The Corporation’s management should implement procedures to ensure that there are sufficient deposits to cover the security deposit liability. Management Response: Management concurs with the finding and is updating policies and procedures to ensure compliance in the future.