Finding Text
Program: Public Housing Operating Fund Requirement: PHAs are required to enter into General Depository Agreements with their financial institution using the HUD-51999 or a form as required by HUD in the ACC. The agreements serve as safeguards for federal funds and provide third party rights to HUD. Condition: The Housing Authority does not have a depository agreement from Chase Bank and had Public Housing funds at the financial institution at year end. Questioned Costs: N/A Cause: Chase Bank will not complete a depository agreement and the Housing Authority kept funds at the financial institution until January 8, 2026. Effect: Public Housing funds held at the financial institution are not safeguarded. Prior Year Finding: Yes Information: Sampling was not applicable to this finding, systematic problem. Recommendation: We recommend that the Housing Authority transfers Public Housing funds from Chase Bank to a financial institution that will complete a depository agreement. Management Response: In late 2025, the Stevens Point Housing Authority (SPHA) transitioned its primary banking relationship from Chase Bank to Associated Bank and obtained a signed depository agreement from Associated Bank. As of December 2025, SPHA no longer utilized Chase Bank for its business banking activities and to receive HUD funds. All primary banking activities and related funds are maintained through Associated Bank. The transfer of funds from the Chase Bank account to the Associated Bank account occurred during the third quarter of 2025 through January 2026 as part of the transition. The Chase account has remained open solely to preserve access to the account and any historical online banking information that may be needed during the completion of the 2025 audit or for other administrative purposes. Following completion and HUD approval of the 2025 audit, SPHA plans to formally close the remaining Chase Bank account.