Finding 1216978 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-06-08

AI Summary

  • Core Issue: The segregated, interest-bearing account for security deposits is less than the required total amount.
  • Impacted Requirements: This violates the requirement that the account must equal the total security deposits collected plus accrued interest, minus allowable costs.
  • Recommended Follow-up: The organization should increase the security deposit account to match the liability amount.

Finding Text

Criteria or specific requirement: The amount of the segregated, interest-bearing account maintained by The Village at Oasis Park - Phase I, Inc. for security deposits must at all times equal the total amount collected from the families then in occupancy plus any accrued interest and less allowable administrative costs adjustments. Condition: The amount within the segregated, interest-bearing security deposits account was less than security deposits liability. Questioned costs: N/A Context: A separate, interest-bearing account is maintained but did not total an amount equal or greater than the security deposit liability due to cash flow restraint. Cause: A separate, interest-bearing account is maintained but did not total an amount equal or greater than the security deposit liability due to cash flow restraint. Effect: Not in compliance with security deposit requirement Repeat Finding: No Recommendation: The Organization should increase security deposit account to equal liability account. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Security Deposit Account Does Not Cover Liability Criteria: The amount of the segregated, interest-bearing account maintained by The Village at Oasis Park - Phase I, Inc. for security deposits must at all times equal the total amount collected from the families then in occupancy plus any accrued interest and less allowable administrative costs adjustments. Condition: The amount within the segregated, interest-bearing security deposits account was less than security deposits liability. Context: A separate, interest-bearing account is maintained, but did not total an amount equal or greater than the security deposit liability due to cash flow restraint. Response: The Organization will make a deposit to security deposit account if cash flow allows. Management expects these corrective actions to ensure future compliance with applicable federal and HUD reporting requirements.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1216975 2025-001
    Material Weakness Repeat
  • 1216976 2025-001
    Material Weakness Repeat
  • 1216977 2025-002
    Material Weakness Repeat
  • 1216979 2025-003
    Material Weakness Repeat
  • 1216980 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 Section 811 Housing Capital Advance $2.14M
14.181 Section 811 Rental Subsidy Payments $75,882