FAC Explorer

Finding 21258 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-05
Audit: 23066
Organization: St. Peter's Housing, Inc. 053-Ee103 (NC)
Auditor: Bernard Robinson & Company LLP

AI Summary

  • Core Issue: The Project had $17,523 in funds exceeding FDIC insurance limits as of December 31, 2022.
  • Impacted Requirements: This violates HUD Handbook 4370.2, which mandates that cash accounts must be in federally insured banks.
  • Recommended Follow-Up: Management should monitor cash balances regularly and ensure funds are within FDIC limits or secured through collateral or government investments.

Finding Text

Finding 2022-001: U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly, Assistance Listing #14.157 Statement of Condition: At December 31, 2022, the Project had $17,523 of funds maintained in an institution that were in excess of FDIC insured limits. Criteria: The HUD Handbook 4370.2, Chapter 2, Section 2-5, requires that the cash accounts of the Project be deposited in a bank or banks whose deposits are federally insured. Effect: Noncompliance with HUD Regulations and potential loss of the funds held in excess of FDIC limits. Cause: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Context: A test to compare the total funds held at each institution to the $250,000 federally insured limit. At December 31, 2022, the total funds held at one bank was $267,523 which was $17,253 in excess of the $250,000 federally insured limit. Questioned Costs: $0 Recommendation: We recommend that management should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Views of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and will transfer funds to provide adequate FDIC insurance coverage for all funds. Management will re-evaluate its policies and procedures to determine any necessary changes.

Corrective Action Plan

St. Peter's Housing, Inc. Winston-Salem, NC CORRECTIVE ACTION PLAN February 16, 2023 U.S. Department of Housing and Urban Development Atlanta Regional Office Five Points Plaza Building 40 Marietta Street Atlanta, GA 30303 St. Peter's Housing, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2022. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year Ended December 31, 2022 The finding for the year ended December 31, 2022 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings and Questioned Costs: Finding 2022-001: U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly, Assistance Listing #14.157 Recommendation: We recommend that management should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Action Taken: We agree with Finding 2022-001 described in the accompanying schedule of findings and questioned costs. Management will transfer funds to provide adequate FDIC insurance coverage for all funds. Additionally, management will re-evaluate its policies and procedures to determine any necessary changes. If HUD has questions regarding this corrective action plan, please call (336) 765-0424. Sincerely yours, Laura Grimes Accounting Manager Community Management Corporation Managing Agent

Categories

HUD Housing Programs

Other Findings in this Audit

  • 597700 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.27M