Finding Text
Findings reference number: 2022-001 Title and AL Number of Federal Program: Section 8 Housing Assistance, AL 14.195 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, 2022 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 Contract Number: 114-11228 Context: The funds were withdrawn because of a shortfall of operating cash and need for necessary repairs to the property. Recommendation: Management must transfer enough funds to the security deposit account to cover the tenant security deposit liability.