FAC Explorer

Finding 1155692 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-26
Audit: 367971
Organization: Milton Housing Authority (MA)
Auditor: Dooley & Vicars CPAS

AI Summary

  • Core Issue: The Housing Authority did not establish a required general depository agreement after changing bank accounts for the Section 8 Housing Choice Vouchers program.
  • Impacted Requirements: This oversight violates HUD regulations designed to protect federal funds and ensure proper management.
  • Recommended Follow-Up: Increase oversight and provide training to staff on compliance with HUD procedures to prevent future issues.

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.

Corrective Action Plan

September 24, 2025 MILTON HOUSING AUTHORITY CORRECTIVE ACTION PLAN Finding No. 2024-001 – Special Tests and Provisions; Significant Deficiency (HCV Cluster #14.871 and #14.879) Auditee’s Response and Planned Corrective Action Milton Housing Authority did not complete a general depository agreement with Milton Housing Authority’s new banking partner in 2024. A general depository has been completed in 2025 and it is the opinion of Milton Housing Authority that the matter is resolved. Planned Implementation Date of Corrective Action: Completed Person Responsible for Corrective Action: Earl Fay, Executive Director (617) 698-2169

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1155689 2024-001
    Material Weakness Repeat
  • 1155690 2024-002
    Material Weakness Repeat
  • 1155691 2024-003
    Material Weakness Repeat
  • 1155693 2024-002
    Material Weakness Repeat
  • 1155694 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.12M
14.879 Mainstream Vouchers $730,433