Finding 960634 (2023-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-25
Audit: 297287
Auditor: Aprio LLP

AI Summary

  • Core Issue: The Authority lacked required collateral for $50,000, risking potential loss of federal funds.
  • Impacted Requirements: Compliance with PIH notice 96-33, which mandates collateralization of funds exceeding FDIC coverage.
  • Recommended Follow-Up: Monthly monitoring of bank balances to ensure adequate collateral is maintained at all times.

Finding Text

Public Housing Program – CFDA No. 14.850, Year ended June 30, 2023 Criteria: PIH notice 96-33 requires all funds in excess of FDIC coverage be collateralized with specific approved governmental securities held in the Authority’s name.Management’s Response to Finding: The Authority’s Executive Director, Kelley Ballew, has assumed the responsibility of maintaining sufficient collateral and will monitor account balances regularly. Responsible Party: Kelley Ballew, Executive Director, (256)447-6734. Anticipated Completion Date: June 30, 2024 Condition and Cause: The Authority did not have collateralization pledged to the Authority for $50,000 invested as of June 30, 2023, which was not insured by FDIC or invested in U.S. Treasury Obligations. Potential Effect: Had there been a bank failure or theft the Authority may not have recovered up to $50,000 in federal funds. Questioned Costs: None Perspective Information: The Authority opened a Certificate of Deposit in another bank for $300,000 during the year and did not obtain collateralization for amounts over FDIC coverage. Repeat Finding: Yes Recommendation: We recommend the Authority monitor their bank balances with financial institutions on a monthly basis to assure the banks have sufficient collateral pledged at all times.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $874,154
14.872 Public Housing Capital Fund $249,280