FAC Explorer

Finding 1099254 (2024-002)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-02-12
Audit: 342184
Organization: Bear River Association of Governments (UT)
Auditor: Jones Simkins LLC

AI Summary

  • Core Issue: BRAG has not established required General Depository Agreements (GDA) with financial institutions, leading to a significant internal control deficiency.
  • Impacted Requirements: Compliance with HUD regulations for safeguarding federal funds and ensuring proper management of Housing Choice Vouchers.
  • Recommended Follow-Up: Implement controls to ensure BRAG enters into GDAs as mandated by HUD to comply with federal guidelines.

Finding Text

Assistance Listing Numbers #14.871/14.879 - Section 8 Housing Choice Vouchers and Mainstream Vouchers (HUD). Compliance Requirement: Special Tests and Provisions. Type of Finding: Significant deficiency in internal control over major federal programs. Criteria: Public Housing Authorities are required to enter into general depository agreements (GDA) with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156) Condition: We noted no record that BRAG had entered into a GDA with their financial institutions. Cause: BRAG has not entered into a GDA with their financial institutions. Effect or Potential Effect: BRAG has a significant deficiency in internal control with respect to special test and provisions of federal expenditures. Recommendation: Controls should require that BRAG enter into GDA’s with their financial institutions in the form required by HUD in an effort to maintain compliance with the Uniform Guidance requirements.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.879 Mainstream Vouchers $2.38M
93.568 Low-Income Home Energy Assistance $1.45M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $499,125
81.042 Weatherization Assistance for Low-Income Persons $469,870
14.871 Section 8 Housing Choice Vouchers $438,372
14.231 Emergency Solutions Grant Program $384,839
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $348,792
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $231,532
93.558 Temporary Assistance for Needy Families $195,338
14.267 Continuum of Care Program $132,778
93.667 Social Services Block Grant $120,640
93.052 National Family Caregiver Support, Title Iii, Part E $93,556
93.053 Nutrition Services Incentive Program $91,768
93.778 Medical Assistance Program $84,034
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $67,014
21.027 Coronavirus State and Local Fiscal Recovery Funds $60,462
11.307 Economic Adjustment Assistance $45,343
93.071 Medicare Enrollment Assistance Program $44,830
11.035 Broadband Equity, Access, and Deployment Program $37,427
21.026 Homeowner Assistance Fund $34,251
21.023 Emergency Rental Assistance Program $31,955
93.779 Centers for Medicare and Medicaid Services (cms) Research, Demonstrations and Evaluations $24,385
97.047 Bric: Building Resilient Infrastructure and Communities $19,236
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $18,257
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $16,500
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $12,900
93.569 Community Services Block Grant $9,676
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $7,560
11.302 Economic Development Support for Planning Organizations $2,475