Finding 634908 (2022-001)

Section 223(f) HUD Insured Mortgage ? CFDA 14.155 (Special Tests and Provisions) Conditions and Criteria: The Corporation is to keep copies of all tenant checks for rent payments. We noted 10 of 25 tenants selected for testing did not have copies of the checks available. Effect: The auditor is unable to determine if checks are deposited timely and how much the check amount is. Cause: This occurred because copies of checks were not maintained prior to the checks being deposited. Auditor?s Recommendation: We recommend that the Corporation purchases a check scanner to scan check copies as tenants pay rent. Management?s Response: A check scanner was purchased to scan new incoming checks from tenants.