Finding Text
Finding 2022-001 ? Insufficient Collateralization of Deposits Public Housing Program ? CFDA No. 14.850, Year ended June 30, 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: The Authority did not have collateralization for $158,703 invested as of June 30, 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 $15,703 in federal funds. Perspective Information: This was a timing issue for the transfer of funds. On July 21, 2022, the Authority transferred $300,000 to another bank. 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 Executive Director, Kelley Ballew, has assumed the responsibility of maintaining sufficient collateral and will monitor account balances regularly.