Finding Text
Public Housing Program – CFDA No. 14.850, Year ended June 30, 2023
Criteria: PIH notice 96-33 requires all funds in excess of FDIC coverage be collateralized with specific
approved governmental securities held in the Authority’s name.Management’s Response to Finding: The Authority’s Executive Director, Kelley Ballew, has assumed
the responsibility of maintaining sufficient collateral and will monitor account balances regularly.
Responsible Party: Kelley Ballew, Executive Director, (256)447-6734.
Anticipated Completion Date: June 30, 2024
Condition and Cause: The Authority did not have collateralization pledged to the Authority for $50,000
invested as of June 30, 2023, which was not insured by FDIC or invested in U.S. Treasury Obligations.
Potential Effect: Had there been a bank failure or theft the Authority may not have recovered up to
$50,000 in federal funds.
Questioned Costs: None
Perspective Information: The Authority opened a Certificate of Deposit in another bank for $300,000
during the year and did not obtain collateralization for amounts over FDIC coverage.
Repeat Finding: Yes
Recommendation: We recommend the Authority monitor their bank balances with financial institutions
on a monthly basis to assure the banks have sufficient collateral pledged at all times.