Finding Text
Finding #2022-001: Section 202 Capital Advance, CFDA 14.157 Condition: The Project?s liability for security deposits exceeded the security cash account by $803 at December 31, 2022. Criteria: The HUD regulatory agreement requires the Company maintain the security deposit in a trust account separate from other funds in an amount which at all times equals or exceeds the outstanding security deposit obligation. Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing security deposits. Questioned Cost: $803 Cause: Oversight Recommendation: We recommend the Project deposit all tenant security deposits directly into the trust account for security deposits in an amount sufficient to cover the security deposit liability. Auditor?s Comment: During March 2023, the Company deposited $803 into the security deposit trust account. Security deposit shortfall is corrected. Finding 2022-001 cleared.