Finding Text
24 CFR Section 982.156(a) states that "Unless otherwise required or permitted by HUD, all program recepients must be promptly deposited with a financial institution selected as depositary by the PHA in accordance with HUD requirements. "The PHA must enter into an agreement with the depositary in the form required by HUD" 24 CFR Section 982.156(c). Depository agreements serve as safeguards for federal funds and provide third party rights to HUD. During our audit, we noted that the Authority did not have executed depository agreements in place with the financial institutions holding federal grant funds, as required by the applicable Compliance Supplement and the terms of the Housing Voucher Cluster grant.