Finding Text
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 Capital Advance Assistance Living Number: 14.157 Type of Finding: Significant Deficiency in Internal Control over Compliance Compliance Criteria or Specific Requirement: Internal controls should be in place to ensure that management monitors the bank rating quarterly for financial institutions that the Corporation holds funds at. Condition: The Corporation did not monitor the rating of the bank. Questioned Costs: N/A Context: While performing audit procedures, it was noted that the Corporation did not monitor the rating of the bank. Cause: The Corporation did not monitor the rating of the bank. Effect: Bank Rating was not monitored as required by HUD. Repeat Finding: No Recommendation: The Corporation should review the policy surrounding the procedures regarding the quarterly review of the bank ratings for financial institutions that the Corporation holds funds with. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding and management will make adjustments to the policy surrounding the procedures regarding the quarterly review of the bank ratings for financial institutions during the fiscal year ended September 30, 2026.