Finding 613563 (2022-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 28069
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Authority lacks an executed General Depository Agreement for all federal fund depositories, violating ACC requirements.
  • Impacted Requirements: The absence of this agreement means the Authority hasn't formally established terms with financial institutions for managing $16.3 million in deposits.
  • Recommended Follow-Up: The Authority should promptly execute the General Depository Agreement with its financial institutions and ensure the document is properly retained.

Finding Text

2022-005 ? SPECIAL TESTS AND PROVISIONS ? GENERAL DEPOSITORY AGREEMENTS Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development CFDA #: 14.871 / 14.879 ? Housing Voucher Cluster CRITERIA The Annual Contributions Contract (ACC) requires the Authority to deposit and invest all program funds for projects under an ACC in accordance with the terms of a General Depository Agreement. The General Depository Agreement must be in a form approved by HUD and is executed between the Authority and the depository. The depository must be a financial institution whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Share Insurance Fund (NCUSIF). An original HUD-51999 should be maintained by the Authority and the financial institution. CONDITION During the fiscal year ended June 30, 2022 the Authority did not have an executed General Depository Agreement on file for all depositories of federal funds. CAUSE Management was unable to locate an executed General Depository Agreement. EFFECT The covenants set forth by the General Depository Agreement have not been conveyed to and agreed upon by the Authority and its financial institutions. QUESTIONED COSTS None Identified. CONTEXT The Authority maintains five separate bank accounts with various financial institutions, which had total deposits of $16.3 million at June 30, 2022. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority execute the General Depository form with their financial institution and retain of the executed document. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Categories

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 37118 2022-007
    Significant Deficiency
  • 37119 2022-003
    Significant Deficiency
  • 37120 2022-004
    Material Weakness
  • 37121 2022-005
    Significant Deficiency
  • 37122 2022-006
    Material Weakness
  • 37123 2022-002
    Material Weakness
  • 37124 2022-003
    Significant Deficiency
  • 37125 2022-004
    Material Weakness
  • 37126 2022-005
    Significant Deficiency
  • 37127 2022-006
    Material Weakness
  • 37128 2022-002
    Material Weakness
  • 37129 2022-004
    Material Weakness
  • 37130 2022-004
    Material Weakness
  • 613560 2022-007
    Significant Deficiency
  • 613561 2022-003
    Significant Deficiency
  • 613562 2022-004
    Material Weakness
  • 613564 2022-006
    Material Weakness
  • 613565 2022-002
    Material Weakness
  • 613566 2022-003
    Significant Deficiency
  • 613567 2022-004
    Material Weakness
  • 613568 2022-005
    Significant Deficiency
  • 613569 2022-006
    Material Weakness
  • 613570 2022-002
    Material Weakness
  • 613571 2022-004
    Material Weakness
  • 613572 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $3.02M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $1.42M
14.850 Public and Indian Housing $466,976
14.871 Section 8 Housing Choice Vouchers $319,577
14.879 Mainstream Vouchers $173,889
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $44,546