Finding Text
Criteria: The resident’s security deposits are to be maintained in separate, interest-bearing bank accounts with cash on hand amounts equal to or in excess of security deposits liabilities.
Condition and context: The Organization did not have the necessary funds in the security deposit bank accounts to cover the security deposit liabilities.
Effect: The Organization is not in compliance with the HUD guidelines for maintaining resident security deposits.
Cause: The Organization funded operations at times throughout fiscal year 2023 using security deposit funds.