Finding Text
Finding 2023-002, Rent Deposits
Criteria: The federal program 14.181 requires that all receipts of the project shall be deposited in the name of the project in a bank, and the funds must be used exclusively for the benefit of the project.
Condition and Context: Resident rents collected by the Sponsor were not transferred to the Organization monthly.
Cause: There was turnover in staff, and the new staff was not aware of the requirement.
Effect: The Organization was not in compliance with program requirements.
Identification as a repeat finding: No.
Questioned costs: None.
Recommendation: We recommend that the Organization’s sponsor transfer tenant rent to the Organization monthly.