Finding Text
Finding 2021-004: Missing Depository Agreements (Significant Deficiency)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Special Tests and Provisions
Criteria: Per 24 CFR Section 982.156, housing authorities are required to enter into depository
agreements with their financial institutions in the form required by HUD.
Condition: The Authority did not set up depository agreements with its financial institution.
Context: The Authority has a financial institution that requires a depository agreement.
Effect: The Authority risks violating federal regulations, not maintaining proper safeguards over federal
funds, and not providing third-party rights to HUD.
Cause: The Authority did not have the internal controls over compliance or compliance procedures in
place to set up a depository agreement with its financial institution.
Repeat Finding: This finding is a repeat of 2020-001.
Questioned Costs: None.
Auditor's Recommendation: We recommend that the Authority review and enhance its internal controls
over compliance, policies and procedures regarding depository agreements with its financial institution
and obtain depository agreements with its financial institution.
Views of Responsible Officials: The Authority has addressed this finding. The Bank has signed the
depository agreements effective March 30, 2022.