Finding Text
Finding No. 2022-001 ? Security Deposits Federal Agency: Housing and Urban Development (HUD) Federal Program: Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance Program and Project Rental Assistance: ALN 14.181 Criteria: Section 2-12 ?Cash Management Controls? of the HUD Financial Operations and Accounting Procedures Handbook (4370.2) requires that the balance of any funds collected as security deposits must not at any time be less than the aggregate of all outstanding obligations under the account for security deposits. Condition: At June 30, 2022 the Corporation had a deficiency in its security deposit account of $127. Questioned Costs: None. Effect: The Corporation was not in compliance with the requirements under the program. Cause: The Corporation?s internal controls did not prevent the security deposit account from being less than required under the program. Recommendation: We recommend the Corporation review its internal controls and implement changes necessary to minimize the risk of this occurring in the future. View of Responsible Officials and Planned Corrective Actions: Management accepts the identified finding.