Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Assistance Listing #: 14.157 Type of Finding: * Other Matters Condition: The Project has bank accounts at one bank that are over the FDIC limit that are not covered by additional collateral or insurance. Additionally, the bank has not received one of HUD’s acceptable ratings, as described in HUD Handbook 4350.1. Criteria or Specific Requirement: HUD requires that funds held at banks in excess of FDIC limits either be collateralized or insured, or the bank has received one of HUD’s acceptable rating. Questioned Costs: None Context: The Project has bank accounts over the FDIC limit. Cause: The bank balance increased in the current year. Effect: The Project is not in compliance with the regulatory agreement. Repeat Finding: No Recommendation: We recommend the funds over the FDIC limit either be collateralized or insured, or moved to a bank with a HUD acceptable rating. Views of Responsible Officials and Planned Corrective Actions: Management agrees and will monitor funds held at the bank and take steps to ensure compliance with HUD regulations.