Finding 60065 (2022-001)

Finding No. 2022-001 ? Security Deposit Funding Criteria The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally insured financial institution 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 cause of the missing payments was due to management oversight. Effect or Potential Effect The security deposit fund is underfunded by a total of $23. Auditor Non-Compliance Code M-Security Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding No Recommendations Auditor recommends 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 notes the bank account has been funded to cure the shortfall prior to audit issuance. No further action required. View of responsible officials Auditee agrees that security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity for the fiscal year ended June 30, 2022. Auditee will make an additional deposit to fully fund the security deposit bank account and will establish a system to ensure the security deposit is paid