Finding Text
#2022-001 ? Significant Deficiency ? Depository Agreements Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities are required to enter into General Depository Agreements with their financial institutions using a form as required by HUD. Condition During the course of the audit, a depository agreement was not able to be produced between the depository and the Public Housing Authority. Cause The cause is the form not able to be located.Effect The potential effects of not having the agreement is a lack of safe guards for federal funds and providing third party rights to HUD. Questioned Costs None Perspective Information The finding is related only to the HCV program funds.Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority to investigate the use of form and verify its existence or the need to file a new form. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement and due to the age of the bank account the form was not able to be located during the duration of the audit. HUD Form 51999 will be updated and submitted to HUD for approval.