Finding Text
SIGNIFICANT DEFICIENCY & NON-COMPLIANCE Special Tests and Provisions – Depository Agreements Section 8 Housing Voucher Choice Program AL #14.871, 14.879 Condition: The Agency did not have the required depository agreements in place for its HUD bank accounts. Criteria: The Agency is 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. Cause: Oversight. Effect: The Agency is in violation of HUD depository agreement requirements and HUD has not been provided third party rights to bank accounts. Identification of a Repeat finding: This is not a repeat finding. Questioned Cost: None. Recommendation: We recommend that management obtain all required depository agreements. Management Response: Management agrees with this finding and recommendation.