Finding Text
Finding 2024-011 Special Tests and Provisions: Depository Agreements - Compliance and Internal Control U.S Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers Condition: During review of the Housing Choice Voucher program, RBT noted that the PHA did not have a depository agreement on file with its financial institution until August 2024. Criteria: PHAs are required to enter into depository agreements with their financial institution using form HUD-51999 or a form required by HUD in the ACC. The agreements serve as safeguards for Federal funds and provide third-party rights to HUD. Cause: The Town did not have controls in place to ensure that the agreement was obtained and available upon request. Once the Town was made aware of the requirement, they contacted their financial institution to obtain the agreement, but were unable to obtain a Depository Agreement for several months upon request. Effect: Lack of safeguards could put the PHA’s assets at risk. Questioned Costs: None identified. Perspective: The PHA did not have a depository agreement on file for their one financial institution. Repeat Finding: Repeat Finding of 2023-011. Recommendation: RBT noted that the Town obtained the required Depository Agreement as of August 2024. RBT recommends that the Town implement controls such that required Depository Agreements are obtained when opening accounts at new banks. Auditee’s Response: See corrective action plan.