Finding Text
S3800-010 Finding Reference Number: 2025-004 S3800-011 Title and CFDA Number of Federal Program: Project-Based Rental Assistance (PBRA) 14.195, Mortgage Insurance Rental Housing 14.134 S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size: N/A S3800-018 Sample Size Information: N/A S3800-019 Identification of Repeat Finding and Finding Reference Number: N/A S3800-020 Criteria: Per HUD guidance, the Project must maintain the security deposit account at a balance equal to or more than the security deposit liability at all times, consistent with the HUD approved lease for the tenant of the Project operating leases to low-and moderate-income individuals, including any bank maintenance fees. S3800-030 Statement of Condition: The Project did not maintain the security deposit account at a balance equal to or more than the security deposit liability at all times. As of December 31, 2025, the deficiency was $1,295. S3800-032 Cause: The Project did not follow the terms of the HUD approved lease. S3800-033 Effect or Potential Effect: Tenant deposit is being used to pay for Project expenses. S3800-035 Auditor Non-Compliance Code: Z – Other S3800-037 FHA/Contract Number: 085-11073 S3800-040 Questioned Costs: $-- S3800-045 Reporting Views of Responsible Officials: Funding of the security deposit account should occur monthly but it was not overlooked. S3800-050 Context: For the year ended December 31, 2025, the Project did not maintain the security deposit account at a balance equal to or more than the security deposit liability. S3800-080 Recommendation: The auditor recommends that the Project deposit additional funds to the security deposit account to ensure the balance equals or exceeds the tenant security deposit liability at all times.