Finding 1154144 (2024-004)

2024-004 – SPECIAL TESTS & PROVISIONS: DEPOSITORY AGREEMENT Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Voucher Cluster CRITERIA PHAs are required to enter into General Depository Agreements with their financial institution using the HUD-51999 (OMB No. 2577-0075) or a form as required by HUD in the ACC. The agreements serve as safe guards for federal funds and provide third party rights to HUD (Section 9 of the ACC). CONDITION The Authority has no active depository agreements with any financial institutions with which federal funds are deposited. CAUSE The Authority’s treasury controls did not account for the need for depository agreements. EFFECT The Authority’s federal funds are not adequately safeguarded. QUESTIONED COSTS None identified. CONTEXT The Authority deposits federal funds with several different financial institutions; however, none have an executed depository agreement. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority execute depository agreements with all financial institutions as soon as possible. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.