Finding Text
Finding 2023-002
Criteria:
Minnesota Statute §118A.03 requires that all the Authority’s deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged shall be at least ten percent more than the amount on deposit plus accrued interest at the close of the financial institution’s banking day, not covered by insurance or bonds.
Condition:
At June 30, 2023, the Authority had $129,325 in deposits that were exposed to custodial credit risk.
Questioned Costs:
None.
Effect:
The Authority’s deposits were exposed to custodial credit risk.
Cause:
The Authoity had a lack of adequate collateral.
Recommendation:
We recommend that the Authority monitor deposits to assure proper collateral is pledged.