Finding Text
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2024) Auditor non-compliance code: M - Security Deposits Finding resolution status: Outstanding Universe population size: 12 months Sample size information: 3 months Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $557 Statement of condition #2024-002: The Corporation did not maintain resident security deposits in an amount equal to or greater than resident security deposits liabilities at all times during the year ended December 31, 2024. At December 31, 2024, the resident security deposit account was underfunded by $557. Criteria: Pursuant to the Regulatory Agreement, residents' security deposits should be funded in a separate account in an amount which shall at all time equal or exceed the aggregate of all outstanding obligations. Effect: Failure to fund resident security deposits could result in the inability of the Corporation to return security deposits to residents upon termination of the resident's lease. Cause: Management did not monitor the resident security deposit balance throughout the year. Recommendation: Management should ensure the security deposit account is adequately funded and transfer funds, if necessary, from the operating account to adequately fund the security deposit account. Management's response: Management concurs with the finding and intends to transfer funds from the operating account to adequately fund the security deposit account.