Finding Text
Finding No. 2023-001
Department of Housing and Urban Development
Federal Assistance Listing Number 14.157 Supportive Housing for the Elderly (Section 202)
Statement of Condition
During the year ended 2023, the security deposit cash account was not fully funded during various
times throughout the year.
Cause
The bank erroneously transferred dormant account balances as escheated funds to the State of
Connecticut in the name of the tenant.
Effect or Potential Effect
The tenant security deposit cash account was underfunded and did not cover the security deposit
liability as of December 31, 2023.
Questioned Costs
None
Context
Security deposit cash is underfunded by $7,414.
Identification as a Repeat Finding
This finding is a repeat finding (see prior year finding: 2022-001)
Criteria
In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily
Housing Programs, HUD projects are required to establish and maintain at all times a fully funded
separate bank account for tenant security deposits collected.
Auditor Noncompliance Code: M - Security deposits
Recommendations
2023-001-a Management should transfer $7,414 from the operating account in order to fully fund
the tenant security deposits account.
Views of Responsible Officials and Planned Corrective Actions
The refunded dormant accounts had residents that were moved out or deceased. The remaining
current residents were notified of the deficiency, but there were no responses or payments received
by year-end. The account was funded appropriately with operating monies in January 2024.