Finding 635358 (2022-001)

2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 232 HUD Insured Mortgage Assistance Living Number: 14.129 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Compliance Criteria or Specific Requirement: Cash held in excess of FDIC limits at financial institutions requires a quarterly review of the banks rating. Condition: Management is responsible for reviewing the quarterly bank ratings of the financial institutions where funds are held in excess of the FDIC limits. Questioned Costs: N/A Context: While performing audit procedures it was noted that the client was not monitoring the bank ratings on a quarterly basis. Cause: The project did not monitor the bank ratings for financial institutions where cash was in excess of the FDIC limits. Effect: Banks accounts were not monitored on a quarterly basis Repeat Finding: No Recommendation: Recommend management put a policy in place to monitor the bank rating quarterly for financial institutions the projects hold funds at. Views of Responsible Officials: There is no disagreement with the audit finding.