FAC Explorer

Finding 517196 (2024-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-30
Audit: 335169
Organization: Housing Authority of Crisfield (MD)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The Authority failed to have required depository agreements with financial institutions for Federal funds, which is a repeat finding.
  • Impacted Requirements: Public Housing Authorities must have agreements in place to protect Federal funds and ensure HUD's rights.
  • Recommended Follow-up: The Authority needs to establish depository agreements with all financial institutions managing Federal funds.

Finding Text

Reference Number: 2024-001 Federal Program: 14.850 – Low Rent Public Housing Type of Finding: Noncompliance Repeat Finding: Yes – 2023-001 Criteria Public Housing Authorities are required to enter into depository agreements with their financial institutions using the HUD-519999 or a form required by HUD in the ACC. The agreements serve as safeguards for Federal funds a provide third-party rights to HUD. Condition The Authority could not provide depositor agreements with financial institutions holding Federal funds for the Authority. Questioned Costs None. Cause The Authority does not have depositor agreements with financial institutions holding Federal funds for the Authority. Effect The Authority should enter into depository agreements with all financial institutions holding Federal funds for the Authority. Recommendation The Authority should enter into depository agreements with all financial institutions holding Federal funds for the Authority. Management’s Response and Corrective Action Plan See schedule of corrective action plan.

Corrective Action Plan

2024-001 Depository Agreements (Non Compliance) Recommendation: The Authority should enter into depository agreements with all financial institutions holding Federal funds for the Authority. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has had prior communications with the Bank regarding the depository agreements requirements. The Bank would not sign due to internal policies. The Commission will coordinate discussions between our HUD local field office and the Bank to discuss the requirements for obtaining a depository agreement. Name(s) of the contact person(s) responsible for corrective action: Don Bibb, Executive Director Planned completion date for corrective action plan: December 31, 2025 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Don Bibb, Executive Director

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.872 Capital Fund Program $1.55M
14.850 Public and Indian Housing $1.40M