FAC Explorer

Finding 404717 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-06-29
Audit: 311099
Organization: Wise County Redevelopment and Housing Authority (VA)
Auditor: Bostic Tucker and Company PC

AI Summary

  • Core Issue: The Public Housing Authority failed to execute the required HUD-51999 depository agreement during the fiscal year.
  • Impacted Requirements: This non-compliance affects the safeguarding of Federal funds and third-party rights to HUD as outlined in the Annual Contributions Contract.
  • Recommended Follow-Up: Ensure the execution of the HUD-51999 agreement to comply with federal requirements and protect funding.

Finding Text

Public Housing Authorities are required to enter into a depository agreement with their financial institution using the HUD-Public Housing Authorities are required to enter into a depository agreement with their financial institution using the HUD- 51999) or a form required by HUD in the Annual Contributions Contract (ACC) for the development and operations of public housing projects. The agreement serves as safe guards for Federal funds and provides third party rights to HUD (Section 9 of the ACC). The Authority did not have the required HUD-51999 depository agreement executed during the fiscal year.

Corrective Action Plan

The Housing Authority will execute the Depository Agreement with its financial institutions to ensure our banking accounts comply and that a Depository Agreement is in place. Any account that is not in compliance will be reviewed with the banking institution to ensure the bank accounts are following the criteria required in the HUD-51999 Depository Agreement.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 404718 2023-002
    Material Weakness
  • 404719 2023-003
    Material Weakness
  • 981159 2023-001
    -
  • 981160 2023-002
    Material Weakness
  • 981161 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $2.96M
14.871 Section 8 Housing Choice Vouchers $2.90M
14.872 Public Housing Capital Fund $965,167
14.850 Public and Indian Housing $785,684
10.427 Rural Rental Assistance Payments $371,277
10.766 Community Facilities Loans and Grants $268,466