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Audit 301489

FY End
2023-06-30
Total Expended
$968,366
Findings
4
Programs
6
Organization: Housing and Redevelopment Authority of Wadena (MN)
Year: 2023 Accepted: 2024-04-01
Auditor: Miller McDonald INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
390771 2023-003 Significant Deficiency - N
390772 2023-003 Significant Deficiency - N
967213 2023-003 Significant Deficiency - N
967214 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $360,112 Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $257,326 - 0
14.879 Mainstream Vouchers $140,916 Yes 1
14.850 Public and Indian Housing $126,807 - 0
14.872 Public Housing Capital Fund $77,837 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $5,368 - 0

Contacts

Name Title Type
UTNNUMBJ98N6 Maria Marthaler Auditee
2186317723 Jon Roscoe Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures are presented on the accrual basisof accounting and in accordance with the requirements of Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority did not use an indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Housing and Redevelopment Authority of Wadena under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented on the accrual basis of accounting and in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principle in the presentation of, the financial statements., and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used
Title: Indirect Cost Rate Accounting Policies: Expenditures are presented on the accrual basisof accounting and in accordance with the requirements of Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority did not use an indirect cost rate. The Authority has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Pass-through Entity Identification Numbers Accounting Policies: Expenditures are presented on the accrual basisof accounting and in accordance with the requirements of Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority did not use an indirect cost rate. Pass-through entity identifying numbers, if any, are presented where available.
Title: Subrecipients Accounting Policies: Expenditures are presented on the accrual basisof accounting and in accordance with the requirements of Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority did not use an indirect cost rate. The Housing and Redevelopment Authority of Wadena did not pass any federal money to subrecients.

Finding Details

Finding 2023-003
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2023-003 – Housing Voucher Cluster, CFDA No. 14.871 and 14.879 – Inspections Condition The Authority does not maintain a list of units that have failed inspections. Units needing follow-up inspections are added to a calendar based on their follow-up inspection due date. The Authority does not retain the calendar documenting properties that failed inspections. The calendar is discarded at the end of the month, therefore management is unable to complete monitoring control procedures. Criteria Pursuant to 24 CFR 982.158(d) and 982.404, the Authority must follow up on the correction of failed inspections within 24 hours for life threatening housing quality standard (HQS) deficiencies or 30 calendar days for all other HQS deficiencies. Effect The potential exists that a tenant property that failed an inspection will not be reevaluated and deficiencies will not be corrected leading to noncompliance with HUD guidelines. Cause The Authority has not retained documentation demonstrating that properties with failed inspections have been re-inspected and that deficiencies have been corrected. Repeat Finding No Recommendation We recommend that management retain a list of properties that failed an inspection and subsequent documentation showing the dates of re-inspection and the results of subsequent inspections. Management’s Response The Authority agrees with the finding.
Finding 2023-003
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2023-003 – Housing Voucher Cluster, CFDA No. 14.871 and 14.879 – Inspections Condition The Authority does not maintain a list of units that have failed inspections. Units needing follow-up inspections are added to a calendar based on their follow-up inspection due date. The Authority does not retain the calendar documenting properties that failed inspections. The calendar is discarded at the end of the month, therefore management is unable to complete monitoring control procedures. Criteria Pursuant to 24 CFR 982.158(d) and 982.404, the Authority must follow up on the correction of failed inspections within 24 hours for life threatening housing quality standard (HQS) deficiencies or 30 calendar days for all other HQS deficiencies. Effect The potential exists that a tenant property that failed an inspection will not be reevaluated and deficiencies will not be corrected leading to noncompliance with HUD guidelines. Cause The Authority has not retained documentation demonstrating that properties with failed inspections have been re-inspected and that deficiencies have been corrected. Repeat Finding No Recommendation We recommend that management retain a list of properties that failed an inspection and subsequent documentation showing the dates of re-inspection and the results of subsequent inspections. Management’s Response The Authority agrees with the finding.
Finding 2023-003
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2023-003 – Housing Voucher Cluster, CFDA No. 14.871 and 14.879 – Inspections Condition The Authority does not maintain a list of units that have failed inspections. Units needing follow-up inspections are added to a calendar based on their follow-up inspection due date. The Authority does not retain the calendar documenting properties that failed inspections. The calendar is discarded at the end of the month, therefore management is unable to complete monitoring control procedures. Criteria Pursuant to 24 CFR 982.158(d) and 982.404, the Authority must follow up on the correction of failed inspections within 24 hours for life threatening housing quality standard (HQS) deficiencies or 30 calendar days for all other HQS deficiencies. Effect The potential exists that a tenant property that failed an inspection will not be reevaluated and deficiencies will not be corrected leading to noncompliance with HUD guidelines. Cause The Authority has not retained documentation demonstrating that properties with failed inspections have been re-inspected and that deficiencies have been corrected. Repeat Finding No Recommendation We recommend that management retain a list of properties that failed an inspection and subsequent documentation showing the dates of re-inspection and the results of subsequent inspections. Management’s Response The Authority agrees with the finding.
Finding 2023-003
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2023-003 – Housing Voucher Cluster, CFDA No. 14.871 and 14.879 – Inspections Condition The Authority does not maintain a list of units that have failed inspections. Units needing follow-up inspections are added to a calendar based on their follow-up inspection due date. The Authority does not retain the calendar documenting properties that failed inspections. The calendar is discarded at the end of the month, therefore management is unable to complete monitoring control procedures. Criteria Pursuant to 24 CFR 982.158(d) and 982.404, the Authority must follow up on the correction of failed inspections within 24 hours for life threatening housing quality standard (HQS) deficiencies or 30 calendar days for all other HQS deficiencies. Effect The potential exists that a tenant property that failed an inspection will not be reevaluated and deficiencies will not be corrected leading to noncompliance with HUD guidelines. Cause The Authority has not retained documentation demonstrating that properties with failed inspections have been re-inspected and that deficiencies have been corrected. Repeat Finding No Recommendation We recommend that management retain a list of properties that failed an inspection and subsequent documentation showing the dates of re-inspection and the results of subsequent inspections. Management’s Response The Authority agrees with the finding.