FAC Explorer

Finding 44515 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-27
Audit: 38705
Organization: Housing Authority of the County of Jackson (IL)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Authority lacks active depository agreements with financial institutions for federal fund deposits.
  • Impacted Requirements: This violates HUD requirements for safeguarding federal funds through General Depository Agreements.
  • Recommended Follow-Up: The Authority should promptly execute depository agreements with all relevant financial institutions.

Finding Text

2022-006 ? 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 Not a repeat finding. RECOMMENDATION We recommend that the Authority execute depository agreements with all financial institutions as soon as possible. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Corrective Action Plan

2022-006 ? Special Tests & Provisions: Depository Agreements Auditee?s Response and Planned Corrective Action JCHA will secure depository agreements with each financial institution in which federal funds are deposited. Planned Implementation Date of Corrective Action: On or by June 30, 2023. Person Responsible for Corrective Action: Executive Director with assistance of JCHA staff. Questions concerning the JCHA?s Corrective Action Plan should be addressed to Brigitta Mac- Rizzo, Executive Director, Housing Authority of Jackson County, 300 North 7th Street, Murphysboro, IL 62966.

Categories

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 44512 2022-003
    Material Weakness
  • 44513 2022-004
    Significant Deficiency
  • 44514 2022-005
    Significant Deficiency Repeat
  • 44516 2022-003
    Material Weakness
  • 44517 2022-004
    Significant Deficiency
  • 620954 2022-003
    Material Weakness
  • 620955 2022-004
    Significant Deficiency
  • 620956 2022-005
    Significant Deficiency Repeat
  • 620957 2022-006
    Significant Deficiency
  • 620958 2022-003
    Material Weakness
  • 620959 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $2.42M
14.872 Public Housing Capital Fund $2.04M
14.871 Section 8 Housing Choice Vouchers $1.89M
14.871 Section 8 Housing Choice Vouchers - Emergency Housing Vouchers $90,672
14.870 Resident Opportunity and Supportive Services - Service Coordinators $60,951
14.879 Mainstream Vouchers $52,664
14.871 Section 8 Housing Choice Vouchers - Cares Act $21,409
14.879 Mainstream Vouchers - Cares Act $892