Finding 608690 (2022-001)

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Requirement
C
Questioned Costs
-
Year
2022
Accepted
2022-10-18
Audit: 32171
Organization: West House Corporation (RI)
Auditor: D'ambra CPA

AI Summary

  • Core Issue: Bank accounts exceed the FDIC insurance limit by $7,084 without proper monitoring.
  • Impacted Requirements: HUD regulations require full insurance or quarterly monitoring of bank ratings for excess funds.
  • Recommended Follow-Up: Ensure management transfers excess funds or implements quarterly monitoring of bank ratings.

Finding Text

Finding 2022-001: Federal program - Section 202: Criteria - HUD regulations require all bank accounts be fully insured up to the FDIC limit or that management monitor the bank ratings if an excess of the FDIC limit exists; Condition - bank accounts exceed the FDIC limit by $7,084 and management is not monitoring the bank ratings on a quarterly basis; Cause - management oversight; Recommendation - management should transfer excess funds to another bank or monitor the bank?s ratings on a quarterly basis. Response: Management will transfer the excess to another bank account.

Categories

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $262,518