Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879
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.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding.
Action planned/taken in response to finding:
Housing Voucher Cluster funds are held by the Treasurer for the State of South Carolina. The depository agreements in place are between the depository institution and the state Treasurer. SC Housing submitted a waiver request to the local HUD field office on March 29, 2023. We followed up on the request most recently on January 24, 2024 and to date, no response has been received.
In the meantime, SC Housing is continuing to work with the State Treasurer’s Office to identify a solution that would allow SC Housing to enter into a general depository agreement (GDA) that would provide third party rights to HUD. Modifications have been made to the state financial accounting sytems to track the funds in question separately, but we are trying to determine how, and even if, the funds can be housed in a separate bank account, while still adhering to state regulation.
Name(s) of the contact person(s) responsible for corrective action: Ellen Eudy, Deputy Director, Financial Operations and Lisa Wilkerson, Director of Rental Assistance and Compliance
Planned completion date for corrective action plan: Waiver request submitted to HUD local field office on March 29, 2023. Alternative solution is in discussion with State Treasurer’s Office .