Finding Text
FINDING NUMBER 2024-002: CASH BALANCES IN FINANCIAL INSTITUTIONS IN EXCESS OF FEDERAL INSURANCE LIMITS, UNIFORM GUIDANCE LISTING NUMBER 14.155 Finding Resolution Status: - In Process Information on Universe Population Size: - Not applicable Sample Size Information: - Not applicable Noncompliance Information: - Cash balances in project operating bank accounts are in financial institutions in excess of federal insurance limits Criteria: - As of June 30, 2024 the operating cash balances in excess of the amount allowed by HUD is $956,218. 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. Effect: - The Company has cash balances in excess of the amounts allowed by HUD. The $956,218 amount in excess of the FDIC limit is less than the surplus cash at the end of the year. 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. Non-compliance code: - Z – Other. Amount of Questioned Costs: - None