Finding Text
Federal Agency: United States Department of Housing and Urban Development
Federal Program: Section 232 Mortgage Insurance for Nursing Homes
Federal Assistance Listing Number: 14.129
Award Period: 2024
Type of Finding: Other
Criteria: HUD guidelines require cash to be maintained in financial institutions, which meet
minimum Government National Mortgage Association (GNMA) ratings, when balances exceed
federal insurance limits.
Condition: The Organization maintains cash balances in excess of federally insured limits in a
financial institution that does not meet HUD guidelines.
Questioned Costs: None.
Context: The cash balance at December 31, 2024 was approximately $2,400,000, held in two
financial institutions, which exceeded federal insurance limits by approximately $1,900,000.
Effect: No negative effect was discovered during the audit.
Cause: The Organization’s cash balances held at two financial institutions exceed the federal
insurance limits.
Repeat Finding: Yes, prior year finding 2023-001.
Recommendation: The Organization should transfer all funds to a financial institution that meets
HUD guidelines.