Finding Text
Federal program - Section 202: Criteria: HUD regulations require that cash funds be fully insured or the banks ratings monitored on a regular basis; Condition: funds held in one bank exceed the FDIC insurance limit by $4,597 and the banks ratings are not monitored; Cause: the management agent neglected to set up a program with the bank providing for automatic transfers to member banks to provide for full FDIC insurance; Effect: the property may be at risk of loss of funds; Recommendation: the management agent should set up the necessary paperwork with the bank to provide for the full FDIC insurance coverage. Response: The management agent will set up the necessary paperwork.