Finding Text
Finding No. 2023-001- Federal Award Finding Statement of Condition: Security deposit liability account was underfunded at December 31, 2023. Criteria: HUD requires the security deposit cash account to be maintained in an amount equal to or greater than the security deposit liability on hand. The security deposit account was underfunded by $10,108 at December 31, 2023. Effect: Security deposit liability account was underfunded. Cause: Funds from the security deposit cash account were transferred to the operating account to assist project cash flow in the prior year. Recommendation: Management should transfer funds to the security deposit cash account to cover the shortfall. Management Response: Management agrees with the finding and will transfer the required funds to the security deposit cash account when available.