FAC Explorer

Audit 329032

FY End
2024-06-30
Total Expended
$1.31M
Findings
2
Programs
3
Organization: Housing and Redevelopment Authority of Detroit Lakes (MN)
Year: 2024 Accepted: 2024-11-20
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
508405 2024-003 Significant Deficiency - E
1084847 2024-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $740,794 Yes 1
14.872 Public Housing Capital Fund $433,443 - 0
14.850 Public Housing Operating Fund $137,679 - 0

Contacts

Name Title Type
J1GAX7SNKGP2 Nichole Bristlin Auditee
2188477859 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Housing and Redevelopment Authority of Detroit Lakes has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the federal award activity of the Housing and Redevelopment Authority of Detroit Lakes under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.

Finding Details

Finding 2024-003
Significant Deficiency 2024-003 Eligibility Federal Program – U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. – MN107-Housing Choice Voucher Federal Award Year – 2024 Criteria or Specific Requirement – The Authority must determine income eligibility and calculate the tenant’s rent payment and housing assistance payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Condition – During our review of tenant files, two tenants had no signed lease documentation. The error noted remained undetected after completion of a quality control worksheet, which functions as the Authority’s primary internal review process to ensure an annual certification, at minimum, was performed and appropriate tenant information is documented. Context – We reviewed a sample of 13 of the Authority's 123 tenant files for compliance with program eligibility requirements. Effect – Tenant may have misunderstanding of agreed upon rent and regulations. Cause – Lack of controls and oversight during the year. Repeat Finding – This is not a repeat finding. Recommendation – We recommend the Authority follow its policy and includes a signed lease step on their quality control worksheet. Views of Responsible Officials and Planned Corrective Actions – The Authority recognizes the detection failure and plans to implement auditor’s recommendation.
Finding 2024-003
Significant Deficiency 2024-003 Eligibility Federal Program – U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. – MN107-Housing Choice Voucher Federal Award Year – 2024 Criteria or Specific Requirement – The Authority must determine income eligibility and calculate the tenant’s rent payment and housing assistance payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Condition – During our review of tenant files, two tenants had no signed lease documentation. The error noted remained undetected after completion of a quality control worksheet, which functions as the Authority’s primary internal review process to ensure an annual certification, at minimum, was performed and appropriate tenant information is documented. Context – We reviewed a sample of 13 of the Authority's 123 tenant files for compliance with program eligibility requirements. Effect – Tenant may have misunderstanding of agreed upon rent and regulations. Cause – Lack of controls and oversight during the year. Repeat Finding – This is not a repeat finding. Recommendation – We recommend the Authority follow its policy and includes a signed lease step on their quality control worksheet. Views of Responsible Officials and Planned Corrective Actions – The Authority recognizes the detection failure and plans to implement auditor’s recommendation.