Finding Text
Deposits in Excess of FDIC & Pledged Securities Coverage. Criteria: All public funds on deposit at a financial institution should be safeguarded by either FDIC insurance or collateral pledged by the financial institution. Condition: I noted the following deficiency in bank collateral for funds on deposit as of December 31, 2022: Deposit Insured Deficient BMO Harris Bank $ 366,255 $ 250,000 $ (116,255) Questioned Costs: None noted. Effect: Authority?s funds in excess of the insured amount are vulnerable. Cause: The Authority did not monitor the balances of its accounts closely enough to ensure adequate protection of all funds. Recommendation: I recommend that the Authority periodically contact the bank to ensure all funds are fully secured. Management?s Response: - Cicero Housing will maintain deposits with the bank (BMO Harris) - The Bank (BMO Harris) will provide security as required by applicable law, regulation or rule per the third-party custodian agreement. The custodian (The Bank) agrees to provide safekeeping services and to hold any securities pledged by them in a custodial account established for the benefit of the secured party pursuant to the agreement signed. - The Director (Lillian Gutierrez) will maintain quarterly contact with our bank representative to verify fund balances are fully secure.