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.