Answer: There is a shortage of $12,700 in gross rent potential due to employee theft.
Trend: The total gross rent potential for the year was $62,700, with employee theft coverage only covering $50,000.
List: Follow up on increasing theft coverage or implementing stronger security measures to prevent future losses.
Finding Text
Two months of gross rent potential for the year ended September 30, 2023 was $62,700. Employee theft coverage was $50,000, leaving a shortage of $12,700.00
Corrective Action Plan
Management will increase fidelity bond coverage and increase the amount as needed to ensure sufficient coverage in accordance with the Regulatory Agreement.