Finding Text
2022-002 Lack of Depository Agreements (Noncompliance) Condition and Cause: The Authority does not have signed depository agreements on file for deposits with financial institutions. Criteria: Public Housing Authorities are required to enter into General Depository Agreements with their financial institution using the HUD-51999 (OMB No. 2577-0075) or a form as required by HUD in the ACC. The agreements serve as safeguards for federal funds and provide third party rights to HUD (Section 9 of the ACC). Effect: The Authority is not in compliance with HUD requirements. Recommendation: The Authority should obtain, complete, and submit the required depository agreement (HUD-51999 or similar agreement) as soon as possible. Management Response: Management agrees to research the requirement including discussing the requirement with a HUD representative in order to determine the best approach to becoming compliant.