Finding Text
OTHER MATTERS
2023-002 SECURITY DEPOSIT ACCOUNT FUNDING
Criteria: Tenant security deposit bank accounts must be fully funded and maintained in a separate bank account.
Condition: During our audit testing, we noted that while the Project maintained a separate bank account for tenant security deposit funds, it was not fully funded.
Cause: Tenant security deposits subledger is not reconciled with tenant security deposits bank account to ensure account is fully funded.
Effect: Tenant security deposits bank account is underfunded.
Questioned Costs: None noted.
Recommendation: The Project should implement controls to ensure that the tenant security deposits bank account is fully funded.
Management’s Views and Corrective Action Plan: Management will transfer funds to the tenant security deposits bank account to ensure it is fully funded.