Finding Text
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT
Department of Housing and Urban Development Finding, 2024-001: Section 202 Supportive Housing for the Elderly Program, Capital Advance - Accumulated Balance, CFDA 14.157
STATEMENT OF CONDITION
One of the Project’s bank balances exceeds the Federal Deposit Insurance Corporation (FDIC) limit of $250,000.
CRITERIA
HUD requires the Project’s bank balances to not exceed the $250,000 FDIC limit due to the risk of loss in the event the bank was to fail.
EFFECT OF CONDITION
The Project’s accounts with PeoplesBank totaled over the FDIC limit at December 31, 2024.
CONTEXT
Bank balances were reviewed to ensure the Project is properly managing bank account limits and exposure. Balances at one bank were over the $250,000 limit.
CAUSE OF CONDITION
The Project’s bank accounts at one bank exceeded the FDIC limit at December 31, 2024.
RECOMMENDATION
The auditor recommends ensuring all bank account balances at each bank remain below the FDIC limit.
VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS
The Project will be monitoring bank accounts more frequently throughout the year to ensure bank balances do not exceed the FDIC limits.