Finding Text
2022-003 Section 8 Housing Choice Vouchers ?Compliance First reported in 2022 Federal Program 14.871 Section 8 Housing Choice Vouchers Criteria or Specific Requirement Compliance with Housing and Urban Development (HUD) Requirements on Depository Agreements HUD Requirement 24 CFR section 982.156 requires the City to enter into depository agreements with their financial institutions in a form required by HUD. The agreement serves as a safeguard for federal funds and provides third party rights to HUD. Condition Found We noted that the City did not have a depository agreement with its current financial institution that it uses for the Section 8 Housing Choice Voucher program. Cause The City changed financial institutions and the depository agreement was not completed for the new account. Questioned Costs There are no questioned costs related to this finding. Perspective Information These issues are isolated to this program. Identification of Repeat Findings Not Appliable Effect HUD did not have third party rights to the bank account. Recommendations to Prevent Future Occurrences The City should work with their current financial institution to complete a depository agreement to have on file. Management?s Response See Management?s Corrective Action Plan later in the report.