Finding Text
Condition: Funds held in one bank exceed the FDIC insurance limit by $20,844 and the
bank’s 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 overlooked 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 has set up the necessary paperwork.