Finding Text
2025-001: Special Tests and Provisions Assistance Listing Number: 14.850a, Low Income Public Housing CONDITION AND CRITERIA: Housing Authorities are required under their Annual Contributions Contract (ACC) to have an updated General Depository Agreement in place with all financial institutions. All funds must be insured by a federal organization to safeguard against loss of said funds. Any portion of these funds not insured by FDIC must be fully collateralized with specific U.S. Government or Agency securities to prevent a loss of funds. TYPE OF FINDING: Significant Deficiency CAUSE: The Housing Authority experienced turnover in the Executive Director Position. Three different Executive Directors have been in place and changed over the last several years. Proper communication was not done in the internal control structure to allow compliance with HUD rules and regulations. EFFECT: The Housing Authority could not produce a current General Depository Agreement for their financial institutions. QUESTIONED COSTS: None known AUDITORS’ RECOMMENDATION: We recommend that the Housing Authority update its Declaration of Trust with the financial institutions that they do business with.