Finding Text
Finding 2022-008 Special Testing and Provisions: Depository Agreements
14.871 – Section 8 Housing Choice Vouchers
Type of Finding: Compliance Finding
Condition: During review of the Housing Choice Voucher (“HCV”) program, RBT noted that the Town did not have a depository agreement on file with its financial institution.
Criteria: HCV recipients are required to enter into depository agreements with their financial institution using form HUD-51999 or a form required by HUD in the Annual Contribution Contract (“ACC”). The agreements serve as safeguards for Federal funds and provide third-party rights to HUD.
Cause: The Town could not locate the agreement upon request.
Effect: Lack of safeguards could put the Town’s assets at risk.
Questioned Costs: None identified.
Perspective: The Town’s HCV money is on deposit at one financial institution.
Repeat Finding: Not a repeat finding.
Recommendation: RBT recommends that the Town have this agreement signed by the financial institution.
Auditee’s Response: The Town agrees with this finding. See corrective action plan.