Finding Text
Findings reference number: 2024-002 Title and AL Number of Federal Program: Project Rental Assistance Contract, AL 14.157 - Type of finding: Federal Award (Compliance) -Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: Yes - Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. - Condition: Review of the security deposit account showed that the balance as of December 31, 2024 was insufficient to cover the tenant security deposit liability. - Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account. - Effect: The Project may not be able to refund the security deposit for tenants moving out. - Noncompliance code: M. Security deposits. - Questioned costs: N/A. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: 114-EE150 - Context: The funds were withdrawn because of a shortfall of operating cash. - Recommendation: Management must transfer enough funds to the security deposit account to cover the tenant security deposit liability. - Completion date: 12/31/25 - Auditee's Response: Auditee agrees with the finding and will replenish the money to the security deposit account as soon as possible.