Finding Text
Finding No. 2022-001 1. CONDITION ? Security deposits cash accounts is overfunded when compared to Project tenant security liability. 2. CRITERIA ? In HUD Handbook 4350.3, Rev. 1, Chapter 6, Section 2 Paragraph 6-17(B), stated that balance of account must be equal to the amount collected from all tenants in occupancy plus any accrued interest. 3. EFFECT ? Security cash account is overstated by $101. 4. CAUSE ? Collection of tenant security deposited by error in the Project operating cash account amounted to $50 by Project Administrator and a duplicate of collection from move out for $51. 5. QUESTIONED COSTS ? None. 6. RECOMMENDATION ? Management Agent must transfer the overfunded amount to the operating cash account, as soon as possible.