Finding 513852 (2024-001)

Security Deposit Funding Information on the Universe Population Size-Security deposit activity was reviewed throughout the audit period and at year-end Sample Size-Security deposit activity was reviewed throughout the audit period and at year-end Identification of Repeat Finding Reference Number- 2023-002 Criteria-The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally insured financial bank account Statement of Condition-Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity Cause-The reason the deposit was not made is due to management oversight due to a change in management personnel positions Effect or Potential Effect-The security deposit fund is underfunded by a total of $160 Auditor Non-Compliance code-M-Security Deposits Questioned Costs-There were no known questioned costs Reporting Views of Responsible Officials-Auditee agrees with this finding and will make the required deposits timely going forward FHA Contract Number- 000-HH005/CMI Context-The finding represents an instance of management oversight due to a change in management personnel positions Recommendations-We recommend that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations- The Entity agrees with the finding and has made an additional deposit to the security deposit account in order to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences Response Indicator- Agree Completion Date- 8/19/2024 Response-Management agrees with the finding and has made a deposit to the security deposit account to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences Contact Person- Stanley Estremsky