Audit 310988

FY End
2023-12-31
Total Expended
$9.11M
Findings
6
Programs
9
Year: 2023 Accepted: 2024-06-28
Auditor: Hawkins Ash CPAS

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
404232 2023-001 Material Weakness Yes N
404233 2023-001 Material Weakness Yes N
404234 2023-001 Material Weakness Yes N
980674 2023-001 Material Weakness Yes N
980675 2023-001 Material Weakness Yes N
980676 2023-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.879 Mainstream Vouchers $774,728 Yes 1
14.871 Section 8 Housing Choice Vouchers $680,045 Yes 1
14.181 Supportive Housing for Persons with Disabilities $647,200 - 0
14.267 Continuum of Care Program $425,413 - 0
14.850 Public and Indian Housing $352,327 - 0
14.872 Public Housing Capital Fund $167,644 - 0
10.427 Rural Rental Assistance Payments $31,364 - 0
14.149 Rent Supplements_rental Housing for Lower Income Families $25,732 - 0
10.415 Rural Rental Housing Loans $17,678 - 0

Contacts

Name Title Type
GQWAYD787CC8 Stephanie Reese Auditee
5073287081 Joe Haas Auditor
No contacts on file

Notes to SEFA

Title: 1. REPORTING ENTITY Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Olmsted County Housing and Redevelopment Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by the Olmsted County Housing and Redevelopment Authority. The Authority’s reporting entity is defined in Note A to the financial statements
Title: 2. BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Olmsted County Housing and Redevelopment Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Olmsted County Housing and Redevelopment Authority under programs of the federal government for the year ended December 31, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the presentation of, the financial statements. Because the schedule presents only a selected portion of the operations of Olmsted County Housing and Redevelopment Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Olmsted County Housing and Redevelopment Authority.
Title: 4. DISCLOSURE OF OTHER FORMS OF ASSISTANCE Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Olmsted County Housing and Redevelopment Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Olmsted County Housing and Redevelopment Authority had non cash assistance in the form of interest subsidy in the amount of $17,678 from Rural Rental Housing loans during the year ending December 31, 2023.
Title: 5. RECONCILIATION TO SCHEDULE OF INTERGOVERNMENTAL REVENUE Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Olmsted County Housing and Redevelopment Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Federal grant revenue per Schedule of Intergovernmental Revenue $ 7,785,927 Per HUD include in SEFA Other public housing authorities, port in income 680,045 Supportive housing for persons with disabilities, temporarily restricted capital advance 647,200 Expenditures per Schedule of Expenditures of Federal Awards $ 9,113,172

Finding Details

Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: 2022-001 Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management’s Response: Due to the transition to a new software system, the required settings to facilitate necessary reporting and tracking mechanisms were not fully functional until recently. Reports indicating failed inspections, late inspections, and the need for abatements are now being run on a scheduled basis so that action can be taken timely. A new inspection application within the software has now been implemented to aid in recording and tracking deficiencies. Additionally, the PHA is working diligently with the software provider and a software consultant to determine if there are additional features that are able to be put into place to assist in streamlining the abatement process. Staff training for these new features will also be occurring throughout the year. with HUD requirements.
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: 2022-001 Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management’s Response: Due to the transition to a new software system, the required settings to facilitate necessary reporting and tracking mechanisms were not fully functional until recently. Reports indicating failed inspections, late inspections, and the need for abatements are now being run on a scheduled basis so that action can be taken timely. A new inspection application within the software has now been implemented to aid in recording and tracking deficiencies. Additionally, the PHA is working diligently with the software provider and a software consultant to determine if there are additional features that are able to be put into place to assist in streamlining the abatement process. Staff training for these new features will also be occurring throughout the year. with HUD requirements.
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: 2022-001 Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management’s Response: Due to the transition to a new software system, the required settings to facilitate necessary reporting and tracking mechanisms were not fully functional until recently. Reports indicating failed inspections, late inspections, and the need for abatements are now being run on a scheduled basis so that action can be taken timely. A new inspection application within the software has now been implemented to aid in recording and tracking deficiencies. Additionally, the PHA is working diligently with the software provider and a software consultant to determine if there are additional features that are able to be put into place to assist in streamlining the abatement process. Staff training for these new features will also be occurring throughout the year. with HUD requirements.
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: 2022-001 Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management’s Response: Due to the transition to a new software system, the required settings to facilitate necessary reporting and tracking mechanisms were not fully functional until recently. Reports indicating failed inspections, late inspections, and the need for abatements are now being run on a scheduled basis so that action can be taken timely. A new inspection application within the software has now been implemented to aid in recording and tracking deficiencies. Additionally, the PHA is working diligently with the software provider and a software consultant to determine if there are additional features that are able to be put into place to assist in streamlining the abatement process. Staff training for these new features will also be occurring throughout the year. with HUD requirements.
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: 2022-001 Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management’s Response: Due to the transition to a new software system, the required settings to facilitate necessary reporting and tracking mechanisms were not fully functional until recently. Reports indicating failed inspections, late inspections, and the need for abatements are now being run on a scheduled basis so that action can be taken timely. A new inspection application within the software has now been implemented to aid in recording and tracking deficiencies. Additionally, the PHA is working diligently with the software provider and a software consultant to determine if there are additional features that are able to be put into place to assist in streamlining the abatement process. Staff training for these new features will also be occurring throughout the year. with HUD requirements.
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: 2022-001 Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management’s Response: Due to the transition to a new software system, the required settings to facilitate necessary reporting and tracking mechanisms were not fully functional until recently. Reports indicating failed inspections, late inspections, and the need for abatements are now being run on a scheduled basis so that action can be taken timely. A new inspection application within the software has now been implemented to aid in recording and tracking deficiencies. Additionally, the PHA is working diligently with the software provider and a software consultant to determine if there are additional features that are able to be put into place to assist in streamlining the abatement process. Staff training for these new features will also be occurring throughout the year. with HUD requirements.