Finding Text
Condition: Funds held in one bank exceed the FDIC insurance limit by $35,446 and the
banks ratings are not monitored.
Criteria: HUD regulations require that cash funds be fully insured or the banks ratings
monitored on a regular basis.
Cause: The management agent neglected to set up a program with the bank providing for
automatic transfers to member banks to provide for full FDIC insurance.
Recommendation: The management agent should set up the necessary paperwork with the bank to
provide for the full FDIC insurance coverage.
Response: The management agent will set up the necessary paperwork.