Core Issue: Funds in one bank exceed the FDIC insurance limit by $35,446.
Impacted Requirements: HUD regulations mandate that cash funds must be fully insured or bank ratings monitored regularly.
Recommended Follow-Up: The management agent needs to establish a program for automatic transfers to ensure full FDIC insurance coverage.
Finding Text
Condition: Funds held in one bank exceed the FDIC insurance limit by $35,446 and the
banks ratings are not monitored.
Criteria: HUD regulations require that cash funds be fully insured or the banks ratings
monitored on a regular basis.
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.
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.
Corrective Action Plan
The management agent will set up the necessary paperwork.
Cynthia Langlykke, the Executive Director, will work with the management company to resolve
this matter.
The anticipated completion date is December 31, 2025.