Sample audit report

On Apr 2 this owner's balance fell to −$2,800: a $4,800 roof repair was paid before his rents arrived. The difference was covered by funds belonging to other owners — treated as conversion of client funds in most states.

Jun 3 bank statement shows a $780 online transfer to operating (BK9001) with no matching PMS transaction. Pattern: bulk management-fee transfer bypassing the software. Every dollar out of trust must trace to a record.

As of Jun 30 the trust bank holds $22,038 but should hold $22,418 (positive owner balances + deposit liability + undisbursed fees). The findings below decompose this gap.

No refund and no claim recorded 60+ days after move-out. Most states require action within 14–30 days; this exposure grows into tenant complaints and statutory penalties.

$780 of May management fees remained in the trust account 30+ days — commingling under CA rules.

Register total $10,500 vs ledger-derived liability $10,400. A $100 partial refund was posted to the ledger but never updated in the register.

Property "120 Maple St": collected $6,200, contract fee $496, charged $620. Overcharge of $124 owed back to the owner.

A $1,400 April rent receipt, already cleared in the April reconciliation, was voided May 10. The void lands in a different reconciliation window — the adjusted cash balance will stay off by $1,400 every month until corrected. (The engine also flagged the April management fee that silently became wrong because of this void.)

Jun 2: two identical $1,600 receipts for the same lease; the bank shows one deposit. The owner's June statement would overstate income.

States like CA require a documented three-way reconciliation for every month with activity. This is the first thing an auditor asks for.

Plumbing check #1077 never cleared. Stale checks distort reconciliations and usually mean a vendor was never actually paid.