Finding 518972 (2022-002)

Finding 2022-002: Section 811 Criteria: Requirement to maintain evidence of monthly rent rolls and a current tenant security deposit liability summary. Statement of Condition: Lack of documented evidence demonstrating the maintenance of monthly rent rolls and a current tenant security deposit liability summary. Cause: Oversight in record-keeping procedures regarding the current status of tenant security deposits. Effect or Potential Effect: Potential delay in the return of security deposits for move-out tenants due to insufficient documentation and lack of segregation of funds. Recommendation: Establish and maintain documented monthly rent rolls and a current tenant security deposit liability summary into the month-end close process. Management’s Response: We recognize the need to promptly enact measures to uphold monthly rent roll maintenance and the ongoing review of tenant security deposit liabilities.