Case Study

Rebuilding an $87,000 Vacation Rental Escrow Before a State Audit

$87,000 Compliance Crisis Averted Through Forensic Reconciliation

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$87K

Escrow Liability Identified

$150K

Fines Avoided

Audit Findings

Client Snapshot

Company: 7-year-old vacation rental management company
Violation: Escrow funds commingled with operating revenue
Duration: 3 to 4 years of commingling
Risk: State audit and significant fines ($50K to $150K)

Challenges

Commingled Funds
Guest deposits (escrow) and operating revenue in a single bank account for 3 to 4 years
Compliance Violation
Direct violation of state regulations placing the business at high audit risk
$53K Shortfall
Actual escrow balance was only $34,000 against $87,000 liability

Results

Forensic Discovery
$87,000 correct escrow liability identified after 48-month analysis
Shortfall Corrected
$53,000 gap between liability and actual balance immediately fixed
Fines Avoided
Estimated $50K to $150K in state fines successfully prevented
State Audit
Passed with zero findings. Full compliance achieved

The Solution

FinAccurex conducted a 48-month forensic reconciliation, analyzing and categorizing every bank transaction to identify the correct escrow liability of $87,000.

A proper two-account structure was established (escrow account + operating account), the $53,000 shortfall was immediately corrected, and a complete audit trail documentation package was created for regulatory review.

How We Did It

01
Forensic Reconciliation
48 months of bank transactions analyzed and categorized
02
Proper Account Structure
Two-account setup: escrow account + operating account
03
Audit Trail Created
Complete documentation package for regulatory review
04
State Audit Passed
Zero findings. Full compliance achieved and maintained

Is This Your Situation?

Guest deposits and operating revenue have been going through the same bank account.
You do not know what the escrow balance should be, or whether the account covers it.
You face the risk of a state audit and fines if the commingling is found first.