Finding 539408 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 349955
Organization: Prince William County (VA)

AI Summary

  • Core Issue: The County failed to have a separate depository agreement for federal Housing Voucher funds, which is required by HUD.
  • Impacted Requirements: Noncompliance with Special Test 8 under 24 CFR 982.156, which mandates separate agreements for safeguarding federal funds.
  • Recommended Follow-Up: Establish a separate interest-bearing account for Housing Voucher funds and secure the necessary depository agreement.

Finding Text

Finding 2024‐003: Significant Deficiency and Non‐Material Noncompliance – Housing Voucher Cluster Special Test 8 – Bank Accounts Criteria: The County is required to enter into general depository agreements (“GDA”) with financial institutions in the form required by the United States Department of Housing and Urban Development (“HUD”). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR 982.156). Condition: As a result of a HUD audit in FY 2024, the County was informed of the requirement to have separate bank accounts and depository agreements for these federal funds. Cause: The County had the related funds in an interest-bearing account as required but did not have a separate depository agreement. Effect: The County was not in compliance with Special Test 8 requirements per the Compliance Supplement (24 CFR 982.156). Questioned Costs: None Repeat Finding: No Recommendation: The County should separate Housing Voucher Cluster funds into its own separate interest-bearing account with the required depository agreement. Views of Responsible Officials: Management concurs with the finding and recommendations.

Corrective Action Plan

Finding 2024‐003: Significant Deficiency and Non‐Material Noncompliance – Housing Voucher Cluster Special Test 8 – Bank Accounts Name of Contact Person: Joan Duckett, Director of Housing & Community Development Corrective Action: The Office of Housing and Community Development began working with the County’s Finance Department and the current Banking Financial Institution (Wells Fargo) and opened two separate accounts, one for the Housing Choice Voucher (HCV) program and one for the FSS Escrow Accounts in April 2024. The task included revised mapping of deposits and expenditures, including the establishment of related workflows within the County’s financial management system and therefore these changes were adequately tested. The migration to the two new bank accounts went live on July 1, 2024, and per HUD regulations a General Depository Agreement (HUD‐51999 GDA) was entered. Proposed Completion Date: Immediately

Categories

HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 539409 2024-004
    Significant Deficiency
  • 539410 2024-003
    Significant Deficiency
  • 539411 2024-004
    Significant Deficiency
  • 1115850 2024-003
    Significant Deficiency
  • 1115851 2024-004
    Significant Deficiency
  • 1115852 2024-003
    Significant Deficiency
  • 1115853 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $39.48M
14.871 Section 8 Housing Choice Vouchers $31.16M
84.425 Education Stabilization Fund $22.59M
84.027 Special Education Grants to States $19.21M
84.010 Title I Grants to Local Educational Agencies $14.51M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7.26M
93.600 Head Start $4.32M
14.218 Community Development Block Grants/entitlement Grants $2.49M
84.365 English Language Acquisition State Grants $2.40M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $2.15M
93.658 Foster Care Title IV-E $2.13M
93.667 Social Services Block Grant $1.58M
93.558 Temporary Assistance for Needy Families $1.44M
16.606 State Criminal Alien Assistance Program $1.26M
93.659 Adoption Assistance $1.23M
84.186 Safe and Drug-Free Schools and Communities_state Grants $1.09M
14.U01 Emergency Housing Vouchers $1.08M
14.879 Mainstream Vouchers $1.05M
14.239 Home Investment Partnerships Program $979,000
84.048 Career and Technical Education -- Basic Grants to States $940,000
84.181 Special Education-Grants for Infants and Families $837,000
12.000 Issue of Department of Defense Excess Equipment $764,000
12.556 Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools $724,000
84.287 Twenty-First Century Community Learning Centers $720,000
84.041 Impact Aid $677,000
10.559 Summer Food Service Program for Children $532,000
93.778 Medical Assistance Program $485,000
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $484,000
97.067 Homeland Security Grant Program $455,000
16.575 Crime Victim Assistance $417,000
97.042 Emergency Management Performance Grants $408,000
16.753 Congressionally Recommended Awards $373,000
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $356,000
84.173 Special Education Preschool Grants $347,000
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $326,000
84.424 Student Support and Academic Enrichment Program $284,000
14.241 Housing Opportunities for Persons with Aids $268,000
84.196 Education for Homeless Children and Youth $247,000
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $242,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $228,000
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $228,000
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $214,000
10.582 Fresh Fruit and Vegetable Program $206,000
97.047 Bric: Building Resilient Infrastructure and Communities $206,000
93.556 Marylee Allen Promoting Safe and Stable Families Program $200,000
93.568 Low-Income Home Energy Assistance $196,000
16.922 Equitable Sharing Program $194,000
93.788 Opioid Str $189,000
20.600 State and Community Highway Safety $171,000
10.558 Child and Adult Care Food Program $133,000
93.959 Block Grants for Prevention and Treatment of Substance Abuse $122,000
11.457 Chesapeake Bay Studies $119,000
14.870 Resident Opportunity and Supportive Services - Service Coordinators $113,000
14.267 Continuum of Care Program $108,000
20.607 Alcohol Open Container Requirements $93,000
12.900 Language Grant Program $91,000
15.226 Payments in Lieu of Taxes $86,000
64.009 Veterans Medical Care Benefits $82,000
07.999 High Intensity Drug Trafficking Area (hidta) Project $75,000
93.472 Title IV-E Prevention Program $75,000
10.555 National School Lunch Program $73,000
93.767 Children's Health Insurance Program $69,000
93.052 National Family Caregiver Support, Title Iii, Part E $56,000
93.150 Projects for Assistance in Transition From Homelessness (path) $54,000
93.945 Assistance Programs for Chronic Disease Prevention and Control $51,000
93.747 Elder Abuse Prevention Interventions Program $50,000
16.543 Missing Children's Assistance $45,000
10.553 School Breakfast Program $40,000
14.169 Housing Counseling Assistance Program $40,000
93.324 State Health Insurance Assistance Program $35,000
93.053 Nutrition Services Incentive Program $33,000
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $32,000
16.588 Violence Against Women Formula Grants $31,000
20.939 Safe Streets and Roads for All $29,000
84.002 Adult Education - Basic Grants to States $28,000
14.231 Emergency Solutions Grant Program $26,000
93.071 Medicare Enrollment Assistance Program $25,000
16.540 Juvenile Justice and Delinquency Prevention $18,000
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $17,000
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $9,000
93.761 Evidence-Based Falls Prevention Programs Financed Solely by Prevention and Public Health Funds (pphf) $7,000
93.958 Block Grants for Community Mental Health Services $7,000
93.090 Guardianship Assistance $5,000
93.599 Chafee Education and Training Vouchers Program (etv) $5,000
10.935 Urban Agriculture and Innovative Production $3,000
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $3,000
10.576 Senior Farmers Market Nutrition Program $2,000
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $2,000
93.645 Stephanie Tubbs Jones Child Welfare Services Program $2,000
97.024 Emergency Food and Shelter National Board Program $2,000
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $1,000