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.