FAC Explorer

Finding 392890 (2023-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-10
Audit: 303161
Organization: Sioux Falls Housing and Redevelopment Commission (SD)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: The Authority failed to meet all terms of depository agreements, specifically regarding collateralization of one account.
  • Impacted Requirements: Compliance with HUD regulations (24 CFR section 982.156) for securing deposits is not being met.
  • Recommended Follow-Up: The Authority should conduct monthly reviews of pledged collateral and deposits to ensure adequate coverage.

Finding Text

2023-005 Special Tests and Provisions: Depository Agreements Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency Grant Award No. ND014-Housing Choice Voucher Federal Award Year 2023 Criteria PHAs are required to enter into depository agreements with their financial institutions in the form required by HUD (24 CFR section 982.156). The Authority is required to meet the terms of the agreements. Condition The Authority did not meet all the terms set forth by the depository agreements. It was noted that one account was not properly collateralized. Questioned Costs None Context We reviewed the depository agreements required by HUD for bank accounts holding HCV funds. Effect The Authority’s deposits are not covered by collateral and If the bank fails, deposits would be at risk of being lost. Cause The pledged collateral did not exceed deposits over FDIC coverage at the point in time in which deposits were highest. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority reviews pledged collateral balances and deposits on a monthly basis to ensure proper coverage is maintained. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.

Corrective Action Plan

Contact Person Brent Tucker, Interim Executive Director Corrective Action Plan Plans are in place to move accounts to another bank. A RFP for a new bank will be released in 2024. Planned Completion Date for CAP June 30, 2024

Categories

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 392869 2023-002
    Significant Deficiency
  • 392870 2023-002
    Significant Deficiency
  • 392871 2023-002
    Significant Deficiency
  • 392872 2023-002
    Significant Deficiency
  • 392873 2023-002
    Significant Deficiency
  • 392874 2023-002
    Significant Deficiency
  • 392875 2023-002
    Significant Deficiency
  • 392876 2023-003
    Significant Deficiency
  • 392877 2023-003
    Significant Deficiency
  • 392878 2023-003
    Significant Deficiency
  • 392879 2023-003
    Significant Deficiency
  • 392880 2023-003
    Significant Deficiency
  • 392881 2023-003
    Significant Deficiency
  • 392882 2023-003
    Significant Deficiency
  • 392883 2023-004
    Significant Deficiency
  • 392884 2023-004
    Significant Deficiency
  • 392885 2023-004
    Significant Deficiency
  • 392886 2023-004
    Significant Deficiency
  • 392887 2023-004
    Significant Deficiency
  • 392888 2023-004
    Significant Deficiency
  • 392889 2023-004
    Significant Deficiency
  • 392891 2023-005
    Significant Deficiency
  • 392892 2023-005
    Significant Deficiency
  • 392893 2023-005
    Significant Deficiency
  • 392894 2023-005
    Significant Deficiency
  • 392895 2023-005
    Significant Deficiency
  • 392896 2023-005
    Significant Deficiency
  • 969311 2023-002
    Significant Deficiency
  • 969312 2023-002
    Significant Deficiency
  • 969313 2023-002
    Significant Deficiency
  • 969314 2023-002
    Significant Deficiency
  • 969315 2023-002
    Significant Deficiency
  • 969316 2023-002
    Significant Deficiency
  • 969317 2023-002
    Significant Deficiency
  • 969318 2023-003
    Significant Deficiency
  • 969319 2023-003
    Significant Deficiency
  • 969320 2023-003
    Significant Deficiency
  • 969321 2023-003
    Significant Deficiency
  • 969322 2023-003
    Significant Deficiency
  • 969323 2023-003
    Significant Deficiency
  • 969324 2023-003
    Significant Deficiency
  • 969325 2023-004
    Significant Deficiency
  • 969326 2023-004
    Significant Deficiency
  • 969327 2023-004
    Significant Deficiency
  • 969328 2023-004
    Significant Deficiency
  • 969329 2023-004
    Significant Deficiency
  • 969330 2023-004
    Significant Deficiency
  • 969331 2023-004
    Significant Deficiency
  • 969332 2023-005
    Significant Deficiency
  • 969333 2023-005
    Significant Deficiency
  • 969334 2023-005
    Significant Deficiency
  • 969335 2023-005
    Significant Deficiency
  • 969336 2023-005
    Significant Deficiency
  • 969337 2023-005
    Significant Deficiency
  • 969338 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $196,714
14.850 Public and Indian Housing $106,396
14.896 Family Self-Sufficiency Program $94,324
14.872 Public Housing Capital Fund $69,772
14.195 Section 8 Housing Assistance Payments Program $51,151
14.871 Section 8 Housing Choice Vouchers $19,610
14.238 Shelter Plus Care $2,979
14.241 Housing Opportunities for Persons with Aids $1,469