FAC Explorer

Finding 391467 (2023-003)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-04-01
Audit: 301948
Organization: City of Westminster, Maryland (MD)
Auditor: Sb & Company

AI Summary

  • Core Issue: The City has not had a valid depository agreement for HUD funds since January 2021, risking the safety of federal funds.
  • Impacted Requirements: This non-compliance violates HUD's requirement for Public Housing Authorities to maintain active depository agreements to safeguard funds.
  • Recommended Follow-up: The City should establish a new depository agreement immediately and create a tracking system for future expirations to ensure compliance.

Finding Text

Finding 2023-003 Department of Housing and Urban Development 14.871 Housing Voucher Cluster Non-compliance with Depository Agreement Requirement Repeat Findings: No Criteria: Public Housing 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 and Context: The City has not entered into a depository agreement with their financial institution since January 2020 which expired in January 2021. There was no depository agreement active for fiscal year 2023. Cause: The City does not have an effective policy in place to track their HUD depository agreement expiration. Effect or Potential Effect: HUD funds are not properly deposited or safeguarded. Questioned Costs: Unknown. Recommendation: We recommend that the City enters into a depository agreement with their HUD funds financial institution immediately and implements a system to track the expiration of the agreement to avoid lapses in HUD requirements. Views of Responsible Officials: The City agrees with the finding. See Section V for the corrective action plan.

Corrective Action Plan

The Director of Housing confirmed with a HUD representative that the "General Depository Agreement," HUD Form 51999 (GDA) with an expiration date of 08/31/2023 is the most recent HUD form. The city is currently working with the bank to obtain signatures/execute the form. The Director of Housing will notify the Finance Director when the current form expires and the Finance Director will ensure a new depository agreement is signed.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 391459 2023-001
    Significant Deficiency Repeat
  • 391460 2023-001
    Significant Deficiency Repeat
  • 391461 2023-001
    Significant Deficiency Repeat
  • 391462 2023-001
    Significant Deficiency Repeat
  • 391463 2023-001
    Significant Deficiency Repeat
  • 391464 2023-001
    Significant Deficiency Repeat
  • 391465 2023-002
    - Repeat
  • 391466 2023-002
    - Repeat
  • 391468 2023-003
    -
  • 967901 2023-001
    Significant Deficiency Repeat
  • 967902 2023-001
    Significant Deficiency Repeat
  • 967903 2023-001
    Significant Deficiency Repeat
  • 967904 2023-001
    Significant Deficiency Repeat
  • 967905 2023-001
    Significant Deficiency Repeat
  • 967906 2023-001
    Significant Deficiency Repeat
  • 967907 2023-002
    - Repeat
  • 967908 2023-002
    - Repeat
  • 967909 2023-003
    -
  • 967910 2023-003
    -

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.10M
14.871 Section 8 Housing Choice Vouchers $337,131
93.136 Injury Prevention and Control Research and State and Community Based Programs $79,000
16.607 Bulletproof Vest Partnership Program $2,640
16.111 Joint Law Enforcement Operations $1,829