Finding Text
FINDING NUMBER 2025-001: CASH BALANCES IN FINANCIAL INSTITUTIONS IN EXCESS OF FEDERAL INSURANCE LIMITS, SUPPORTIVE HOUSING FOR THE ELDERLY, FEDERAL LISTING NUMBER 14.157
Statement of Condition:
HUD requires that the Company maintain cash balances in financial institutions that are covered by insurance issued by the Federal Deposit Insurance Corporation (FDIC). The Company may maintain cash balances in financial institution in excess of the FDIC insurance limit if the Company verifies the bank’s debt rating meets certain requirements.
Criteria:
As of March 31, 2025 the cash balances in excess of the amount allowed by HUD is $276,523.
Effect:
The Company has cash balances in excess of the amounts allowed by HUD.
Cause:
The Company accumulated excess cash in the operating account.
Recommendation:
The Company should monitor the investments held by these financial institutions to ensure that HUD’s requirements are met.