Finding 15921 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The Authority lacks a required depository agreement with HUD, leading to non-compliance with federal regulations.
  • Impacted Requirements: Funds must be placed in an interest-bearing account as per 24 CFR section 982.156.
  • Recommended Follow-Up: Establish a separate interest-bearing account and execute the depository agreement, or seek a waiver if local regulations prevent compliance.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 15915 2022-001
    Material Weakness
  • 15916 2022-002
    Material Weakness
  • 15917 2022-003
    Significant Deficiency
  • 15918 2022-004
    Significant Deficiency
  • 15919 2022-001
    Material Weakness
  • 15920 2022-002
    Material Weakness
  • 15922 2022-004
    Significant Deficiency
  • 15923 2022-001
    Material Weakness
  • 15924 2022-002
    Material Weakness
  • 15925 2022-003
    Significant Deficiency
  • 15926 2022-004
    Significant Deficiency
  • 15927 2022-001
    Material Weakness
  • 15928 2022-002
    Material Weakness
  • 15929 2022-003
    Significant Deficiency
  • 15930 2022-004
    Significant Deficiency
  • 15931 2022-005
    Significant Deficiency
  • 592357 2022-001
    Material Weakness
  • 592358 2022-002
    Material Weakness
  • 592359 2022-003
    Significant Deficiency
  • 592360 2022-004
    Significant Deficiency
  • 592361 2022-001
    Material Weakness
  • 592362 2022-002
    Material Weakness
  • 592363 2022-003
    Significant Deficiency
  • 592364 2022-004
    Significant Deficiency
  • 592365 2022-001
    Material Weakness
  • 592366 2022-002
    Material Weakness
  • 592367 2022-003
    Significant Deficiency
  • 592368 2022-004
    Significant Deficiency
  • 592369 2022-001
    Material Weakness
  • 592370 2022-002
    Material Weakness
  • 592371 2022-003
    Significant Deficiency
  • 592372 2022-004
    Significant Deficiency
  • 592373 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Covid-19 Emergency Rental Assistance $230.71M
14.195 Section 8 Housing Assistance Payments Program $149.95M
14.239 Home Investment Partnerships Program $87.49M
21.026 Covid-19 Homeowner Assistance Fund $14.53M
14.871 Section 8 Housing Choice Vouchers $14.48M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $9.30M
14.275 National Housing Trust Fund $1.69M
14.871 Section 8 Housing Choice Vouchers- Emergency Housing Vouchers $564,015
14.871 Section 8 Housing Choice Vouchers - Cares $513,332
14.879 Mainstream Vouchers $124,031
14.228 Hera Neighborhood Stabilization Program $3,867