FAC Explorer

Finding 32248 (2022-001)

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Requirement
C
Questioned Costs
-
Year
2022
Accepted
2022-10-18
Audit: 32171
Organization: West House Corporation (RI)
Auditor: D'ambra CPA

AI Summary

  • Core Issue: Bank accounts exceed the FDIC insurance limit by $7,084 without proper monitoring.
  • Impacted Requirements: HUD regulations require full insurance or quarterly monitoring of bank ratings for excess funds.
  • Recommended Follow-Up: Ensure management transfers excess funds or implements quarterly monitoring of bank ratings.

Finding Text

Finding 2022-001: Federal program - Section 202: Criteria - HUD regulations require all bank accounts be fully insured up to the FDIC limit or that management monitor the bank ratings if an excess of the FDIC limit exists; Condition - bank accounts exceed the FDIC limit by $7,084 and management is not monitoring the bank ratings on a quarterly basis; Cause - management oversight; Recommendation - management should transfer excess funds to another bank or monitor the bank?s ratings on a quarterly basis. Response: Management will transfer the excess to another bank account.

Corrective Action Plan

August 5, 2022 Re: West House Corporation Project No. 016-EE-010 YE June 30, 2022 Finding 2022-001: Federal Program- Section 811: Criteria- HUD regulations require all bank accounts be fully insured up to the FDIC limit or that management monitor the bank ratings if an excess of the FDIC limit exists. Corrective Action Plan: Management has transferred the excess to another bank account. Finding 2002-002: Federal program ? PRAC: Criteria ? the HUD Occupancy handbook specifies the nature and content of tenant income re/certifications. Corrective Action Plan: Management has reviewed all files, obtained required information, and corrected calculations. Site staff will be trained in correct procedures. Please let me know if you have any questions. Sincerely, Jennifer Y. Huynh Vice President

Categories

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $262,518