Finding Text
Finding 2022-001 ? Insufficient Collateralization of Deposits ) ? Other Matter Public Housing Program ? CFDA No. 14.850, Year ended March 31, 2022 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. Condition & Cause: The Authority did not have collateralization for $309,338 invested as of March 31, 2022, 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 $309,338 in federal funds. 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. Reply and Corrective Action Plan: The Authority?s Interim Executive Director, Arelecia Ross, has assumed the responsibility of maintaining sufficient collateral and will monitor account balances regularly.