FAC Explorer

Finding 576801 (2021-004)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2021
Accepted
2023-10-16
Audit: 724
Organization: Wicomico County Housing Authority (MD)
Auditor: Citrin Cooperman & Company LLP

AI Summary

  • Core Issue: The Authority failed to establish required depository agreements with its financial institution, risking non-compliance with federal regulations.
  • Impacted Requirements: This finding violates 24 CFR Section 982.156, which mandates housing authorities to have depository agreements in place.
  • Recommended Follow-Up: Enhance internal controls and procedures to ensure compliance, and confirm that depository agreements are properly executed and maintained.

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.

Categories

HUD Housing Programs Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 352 2021-001
    Significant Deficiency
  • 353 2021-002
    Material Weakness
  • 354 2021-003
    Material Weakness
  • 355 2021-004
    Significant Deficiency Repeat
  • 356 2021-001
    Significant Deficiency
  • 357 2021-002
    Material Weakness
  • 358 2021-003
    Material Weakness
  • 359 2021-004
    Significant Deficiency Repeat
  • 576794 2021-001
    Significant Deficiency
  • 576795 2021-002
    Material Weakness
  • 576796 2021-003
    Material Weakness
  • 576797 2021-004
    Significant Deficiency Repeat
  • 576798 2021-001
    Significant Deficiency
  • 576799 2021-002
    Material Weakness
  • 576800 2021-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $530,736
14.872 Public Housing Capital Fund $126,647
14.871 Section 8 Housing Choice Vouchers $73,787