Finding Text
Finding No. 2024-001 – Special Tests and Provisions; Significant Deficiency (HCV Cluster #14.871 and #14.879) CONDITION: The Authority’s Section 8 Housing Choice Vouchers program changed bank accounts during 2024 and failed to enter into a general depository agreement in accordance with HUD regulations. CRITERIA: Federal funds held in the Section 8 Housing Choice Vouchers program are required to enter into general depository agreements with their financial institutions to serve as safeguards for federal funds and provide third party rights to HUD. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: No general depository agreement form was signed between the bank and the Authority. EFFECT: The federal funds CAUSE: The overall cause was a lack of quality control in understanding the importance of entering into a general depository agreement with their financial institution for federal funds. RECOMMENDATION: The Housing Authority should implement greater oversight over the Housing Choice Voucher Program compliance requirements and train employees on procedures mandated by HUD.