Finding Text
C. Findings and Questioned Costs-Major Federal Award Programs Audit DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 223(a)(7), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project's security deposit liability account was underfunded at September 30, 2023. Criteria: The Project should have a security deposit cash balance in excess of the security deposit liability balance. Effect: The security deposit account was underfunded by $11. Context: The security deposit funding was tested at September 30, 2023. No sample was tested. Questioned costs - NONE. Cause: Management failed to recognize that the security deposit liability account was underfunded at September 30, 2023. Recommendation: The Project should carefully review the statement of financial position to make sure the security deposit liability account is funded. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will be reminded to review the tenant security deposit cash balance versus the security deposit liability balance on a monthly basis. Questioned Costs - Department of Housing and Urban Development - $0. Non-compliance code - M