Finding Text
Criteria: Tenant security deposit accounts must be fully funded and maintained in a separate bank account.
Condition: During our audit testing, we noted that while the Project maintained a separate bank account for
tenant security deposits, it was not fully funded.
Cause: The tenant security deposits subledger is not reconciled with the tenant security deposits bank account to
ensure account is fully funded.
Effect: Tenant security deposits bank account is underfunded.
Questioned Costs: None noted.
Recommendation: The Project should implement controls to ensure that the tenant security deposits bank
account is fully funded.
Management’s Views and Corrective Action Plan: Management has subsequently corrected this and
transferred tenant funds received for their security deposit from the operating bank account to the tenant security
deposits bank account to ensure it is fully funded.