Finding Text
2023-003 – SPECIAL TESTS & PROVISIONS: DEPOSITORY AGREEMENTS
Other Matter/Significant Deficiency
U.S. Department of Housing and Urban Development
ALN #: 14.850 – Public and Indian Housing Program
CRITERIA
PHAs are required to enter into General Depository Agreements with their financial institution using the HUD-51999 (OMB No. 2577-0075) or a form as required by HUD in the ACC. The agreements serve as safe guards for federal funds and provide third party rights to HUD (Section 9 of the ACC).
CONDITION
The Authority has no active depository agreements with any financial institutions with which federal funds are deposited.
CAUSE
The Authority’s treasury controls did not account for the need for depository agreements.
EFFECT
The Authority’s federal funds are not adequately safeguarded.
QUESTIONED COSTS
None identified.
CONTEXT
The Authority deposits federal funds with several different financial institutions; however, none have an executed depository agreement.
REPEAT FINDING
See finding 2022-006.
RECOMMENDATION
We recommend that the Authority execute depository agreements with all financial institutions
as soon as possible.