Finding 1157557 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369789
Organization: Housing Commission of Talbot (MD)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The Commission lacks required depository agreements with financial institutions for Federal funds.
  • Impacted Requirements: This is a repeat finding, indicating ongoing noncompliance with HUD regulations.
  • Recommended Follow-Up: The Commission must establish depository agreements with all relevant financial institutions to ensure compliance.

Finding Text

Reference Number: 2024-001 Federal Program: 14.871 – Housing Choice Voucher Cluster Type of Finding: Noncompliance Repeat Finding: Yes – 2023-001 Criteria Public Housing Authorities are required to enter into depository agreements with their financial institutions using the HUD-519999 or a form required by HDU in the ACC. The agreements serve as safeguards for Federal funds a provide third-party rights to HUD. Condition The Commission could not provide depositor agreements with financial institutions holding Federal funds for the Commission. Questioned Costs None. Cause The Commission does not have depositor agreements with financial institutions holding Federal funds for the Commission. Effect The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Recommendation The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Management’s Response and Corrective Action Plan See schedule of corrective action plan.

Corrective Action Plan

U.S. Department of Housing and Urban Development The Housing Commission of Talbot respectfully submits the following corrective action plan for the year ended December 31, 2024 . . Audit period: January 1, 2024 through December 31, 2024 . Th~ finding from the prior audit's schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the prior year. FINDINGS-FINANCIAL STATEMENT AUDIT None FINDINGS-FEDERAL AWARDS 2023-001 Missing Depository Agreements (Significant Deficiency) Condition: The Housing Commission of Talbot (the "Commission") did not set up depository agreements with its financial institutions. Status: This fin.ding is uncleared. A similar finding was noted in fiscal year 2024. The Commission has had prior communications with the Bank regarding the depository agreements requirements. The Bank would not sign due to internal policies. The Commission will coordinate discussions between our HUD local field office and the Bank to discuss the requirements for obtaining a depository agreement. U.S. Department of Housing and Urban Development · The Housing ,Commission -of Talbot- respectfully submits the following corrective action plan for the year ended December 31, 2024. Audit period: January 1, 2024 through December 31, 2024 · :. ·· The findirigs:from the schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the numbers assigned in the schedule. -FINDINGS--FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2024-001 Missing Depository Agreements (Non Compliance) Recommendation: The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Explanation of disagreement with audit.finding: There is no disagreement with the audit finding. Action ~aken in response to finding: The Commission has had prior communications with the Bank regarding the depository agreement requirements. The Bank would not sign due to internal policies. The Commission will continue to coordinate discussions between our HUD local field office and the Bank to discuss the requirements for obtaining a depository agreement. Name(s) of the contact person(s) responsible for corrective action: Don Bibb, Executive Director Planned completion date for corrective action plan: December 31, 2025 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Don Bibb, Executive Director

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.22M
21.029 Coronavirus Capital Projects Fund $800,000
14.872 Public Housing Capital Fund $158,556
14.850 Public Housing Operating Fund $54,616