Finding Text
Federal program - Capital advance; Criteria - the HUD management agent handbook requires that all cash funds be fully insured or management monitors the banks ratings; Condition - cash funds exceed the FDIC limit by $6,052 and the banks ratings were not monitored; Cause - management has an arrangement with the bank to sweep excess reserve funds over a certain dollar amount, however, due to the rent increase, the operating account caused the cash balances at one institution to exceed the FDIC limit; Recommendation - the management agent should increase the sweep balance to provide for full FDIC coverage. Response: Management will increase the sweep balance.