FAC Explorer

Finding 575545 (2024-004)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-03
Audit: 365535
Organization: Housing Authority of Lincoln County (OR)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The Authority lacks proper internal controls to maintain required depository agreements for HUD funds.
  • Impacted Requirements: PHAs must have agreements in place that comply with HUD standards, including the use of interest-bearing accounts.
  • Recommended Follow-Up: The Authority should secure the necessary depository agreements for all applicable bank accounts to ensure compliance.

Finding Text

HCVP Depository Agreement Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Award Identification Number and Year: OR005 – 2024 Assistance Listing Number: 14.871 / 14.879 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: PHAs are required to enter into depository agreements with their financial institutions in the form required by 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 section 982.156). Condition: The Authority did not have adequate internal controls designed to ensure that depository agreements are maintained for banks that hold HUD funds. Context: During our testing, we noted the Authority did not have a depository agreement with its’ financial institution in the form required by HUD funds. Questioned costs: None Cause: The Authority does not have controls in place to ensure it is meeting all requirements set by HUD. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. View of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Bank Depository Agreements Recommendation: Obtain depository agreements for all bank accounts as required by HUD. Response/Action Taken: we are working directly with our banking institutions to ensure that all accounts holding HUD funds have the required depository agreements. As of August 2025, two of the three existing accounts have updated agreements, and the final agreement is currently under legal review and anticipated for completion by the end of Q3 2024. Context from Prior Audit Findings (FY23) The 2023 audit included findings related to documentaion gaps in areas such as Reasonable Rent, Utility Allowance Schedules, Waiting List procedures, and Housing Quality Standards enforcement. HALC took corrective actions in 2024 to address each of these deficiencies. The recurring nature of some 2024 findings indicates an ongoing effort to build stronger internal controls, rather than unresolved issues form the prior year. If the U.S. Department of Housing and Urban Development has questions regardin this plan, please contact Karen Rockwell at 541-265-5326.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 575542 2024-001
    Significant Deficiency
  • 575543 2024-002
    Significant Deficiency
  • 575544 2024-003
    Significant Deficiency
  • 575546 2024-001
    Significant Deficiency
  • 575547 2024-002
    Significant Deficiency
  • 575548 2024-003
    Significant Deficiency
  • 575549 2024-004
    Significant Deficiency
  • 575550 2024-004
    Significant Deficiency
  • 575551 2024-001
    Significant Deficiency
  • 575552 2024-002
    Significant Deficiency
  • 575553 2024-003
    Significant Deficiency
  • 1151984 2024-001
    Significant Deficiency
  • 1151985 2024-002
    Significant Deficiency
  • 1151986 2024-003
    Significant Deficiency
  • 1151987 2024-004
    Significant Deficiency
  • 1151988 2024-001
    Significant Deficiency
  • 1151989 2024-002
    Significant Deficiency
  • 1151990 2024-003
    Significant Deficiency
  • 1151991 2024-004
    Significant Deficiency
  • 1151992 2024-004
    Significant Deficiency
  • 1151993 2024-001
    Significant Deficiency
  • 1151994 2024-002
    Significant Deficiency
  • 1151995 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $664,472
14.871 Section 8 Housing Choice Vouchers $221,966
14.850 Public Housing Operating Fund $221,018
10.427 Rural Rental Assistance Payments $209,689
14.879 Mainstream Vouchers $196,073
14.870 Resident Opportunity and Supportive Services - Service Coordinators $68,098
10.415 Rural Rental Housing Loans $63,979
21.027 Coronavirus State and Local Fiscal Recovery Funds $60,000