Finding 30122 (2022-003)

Requirement

Questioned Costs

Year

2022

Accepted

2023-01-11

Audit: 36220

Organization: City of West Monroe, Louisiana (LA)

Auditor: Cameron Hines and Company (apac)

AI Summary

Core Issue: The City lacks a required depository agreement with its financial institution for the Section 8 Housing Choice Voucher program.
Impacted Requirements: This violates HUD regulations (24 CFR section 982.156), which mandate such agreements to protect federal funds.
Recommended Follow-Up: The City should finalize a depository agreement with the current financial institution to ensure compliance and safeguard HUD's interests.

Finding Text

2022-003 Section 8 Housing Choice Vouchers ?Compliance First reported in 2022 Federal Program 14.871 Section 8 Housing Choice Vouchers Criteria or Specific Requirement Compliance with Housing and Urban Development (HUD) Requirements on Depository Agreements HUD Requirement 24 CFR section 982.156 requires the City to enter into depository agreements with their financial institutions in a form required by HUD. The agreement serves as a safeguard for federal funds and provides third party rights to HUD. Condition Found We noted that the City did not have a depository agreement with its current financial institution that it uses for the Section 8 Housing Choice Voucher program. Cause The City changed financial institutions and the depository agreement was not completed for the new account. Questioned Costs There are no questioned costs related to this finding. Perspective Information These issues are isolated to this program. Identification of Repeat Findings Not Appliable Effect HUD did not have third party rights to the bank account. Recommendations to Prevent Future Occurrences The City should work with their current financial institution to complete a depository agreement to have on file. Management?s Response See Management?s Corrective Action Plan later in the report.

Corrective Action Plan

2022-003 Section 8 Housing Choice Vouchers - Compliance Federal program and specific federal award identification: This finding relates to Section 8 Housing Vouchers ? AL #14.871 Section 8 Housing Choice Vouchers for the Federal Award Year 2021 received from Federal Agency : U. S. Department of Housing and Urban Development Condition: Compliance with Housing and Urban Development (HUD) Requirements on the HUD Depository Agreement HUD requirement 24 CFR section 982.156 requires the City to enter into depository agreement with their financial institutions in a form required by HUD. The agreement serves as a safeguard for federal funds and provides third party rights to HUD. Corrective action planned: This finding was discussed with Scott Olvey. The city has completed the required HUD form with third-party rights as of December 6, 2022. Person responsible for corrective action: Scott Olvey City Clerk and Finance Director City of West Monroe, Louisiana 2305 N. 7th Street West Monroe, LA 71291 Telephone: (318) 396-2600 Anticipated completion date: June 30, 2023

Other Findings in this Audit

30120 2022-001

- Repeat
30121 2022-002

Significant Deficiency Repeat
606562 2022-001

- Repeat
606563 2022-002

Significant Deficiency Repeat
606564 2022-003

-

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$1.88M
20.205	Highway Planning and Construction	$602,558
20.509	Formula Grants for Rural Areas and Tribal Transit Program	$457,553
97.039	Hazard Mitigation Grant	$301,718
20.219	Recreational Trails Program	$300,943
90.201	Delta Area Economic Development	$290,366
94.006	Americorps	$164,341
20.600	State and Community Highway Safety	$125,043
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$91,336
16.710	Public Safety Partnership and Community Policing Grants	$73,714
10.351	Rural Business Development Grant	$11,412
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$8,763
97.024	Emergency Food and Shelter National Board Program	$8,687
97.044	Assistance to Firefighters Grant	$1,094