Finding 562207 (2024-001)

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-001: Major Program: Section 202 Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 STATEMENT OF CONDITION One of the Project’s bank balances exceeds the Federal Deposit Insurance Corporation (FDIC) limit of $250,000. CRITERIA HUD requires the Project’s bank balances to not exceed the $250,000 FDIC limit due to the risk of loss in the event the bank was to fail. EFFECT OF CONDITION The Project’s accounts with Community Bank totaled over the FDIC limit at December 31, 2024. CONTEXT Bank balances were reviewed to ensure the Project is properly managing bank account limits and exposure. Balances at one bank were over the $250,000 limit. CAUSE OF CONDITION The Project’s bank accounts at one bank exceeded the FDIC limit at December 31, 2024. RECOMMENDATION The auditor recommends ensuring all bank account balances at each bank remain below the FDIC limit. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be monitoring bank accounts more frequently throughout the year to ensure bank balances do not exceed the FDIC limits.