Finding Text
2019-002 Finding – (Housing Choice Voucher– (14.871)) During our review of special tests and provisions we determined that the Authority did not have a depository agreement on file with its financial institution.
Criteria – Housing Authorities are required to enter into depository agreements with their financial institution using the HUD-51999 or a form required by HUD in the ACC. The agreements serve as safeguards for Federal funds and provide third-party rights to HUD.
Effect of Condition – Lack of safeguards could put the Authority’s assets as risk.
Cause of Condition – No such agreement could be found upon request.
Recommendation – We recommend that the Authority have this agreement signed.
PHA Response and Corrective Action Plan – The agreement will be completed and on file as the Authority has already contacted the financial institution to execute the agreement.
PHA Contact and Resolution Date
Rosalind Natale, March 31, 2020