FAC Explorer

Finding 499506 (2023-001)

- Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 322362
Organization: Housing Commission of Talbot (MD)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The Commission failed to establish required depository agreements with financial institutions for Federal funds, marking a repeat finding.
  • Impacted Requirements: Public Housing Authorities must have agreements in place to protect Federal funds and ensure compliance with HUD regulations.
  • Recommended Follow-Up: The Commission needs to promptly create and implement depository agreements with all relevant financial institutions.

Finding Text

Federal Program: 14.871 – Housing Choice Voucher Cluster Type of Finding: Noncompliance Repeat Finding: Yes – 2022-003 Criteria Public Housing Authorities are required to enter into depository agreements with their financial institutions using the HUD-519999 or a form required by HDU in the ACC. The agreements serve as safeguards for Federal funds a provide third-party rights to HUD. Condition The Commission could not provide depositor agreements with financial institutions holding Federal funds for the Commission. Questioned Costs None. Cause The Commission does not have depositor agreements with financial institutions holding Federal funds for the Commission. Effect The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Recommendation The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Management’s Response and Corrective Action Plan See schedule of corrective action plan.

Corrective Action Plan

Missing Depository Agreements ( Non Compliance) Condition: The Housing Commison of Talbot (the "Commision") did not set up depository agreements with its financial institutions. Status: This finding is uncleared. A similar finding was noted in fischal year 2023. The Commission has had prior communications with the Bank regarding the depository agreements requirements. The Bank would not sign due to internal policies. The Commision will coordinate discussions between our HUD local field office and the Bank to discuss the requirements for obtaining a depository agreement.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.37M
14.872 Public Housing Capital Fund $204,949
14.850 Public and Indian Housing $163,971