Finding Text
Insufficient Collateralization of Deposits (Other Matter)
Public Housing Program – Assistance Listing No. 14.850a, Grant Period: Fiscal Year-End March 31, 2024
Criteria
HUD PIH Notice 96-33 requires Public Housing Authorities (PHA’s) to continuously and fully secure all bank deposits which exceed federally-insured balances.
Condition and Perspective
As of March 31, 2024, the Authority’s bank deposit balances were under-collateralized by $2,250,829. $1,086,927 of the under-collateralized balance consisted of deposits accounted for under the Authority’s non-federal ‘Business Activities’ Program. The remaining $1,163,902 of the under-collateralized balance consisted of deposits accounted for under the Public Housing Program.
Questioned Costs – None noted
Cause
Failure to monitor security over bank deposits to ensure compliance with HUD PIH Notice 96-33.
Effect
Non-compliance with HUD PIH Notice 96-33.
Recommendation
We recommend that the Authority monitor security over bank deposits regularly.
Management’s Response
The Authority will monitor security over bank deposits regularly. The Authority’s Executive Director, Dr. Earl Hall, has assumed the responsibility of executing this corrective action as of July 1, 2025.