FAC Explorer

Audit 33877

FY End
2022-12-31
Total Expended
$9.68M
Findings
2
Programs
7
Organization: City of South St. Paul (MN)
Year: 2022 Accepted: 2023-07-26
Auditor: Malloy Montague Karnowski Radosevich & CO P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35147 2022-001 Significant Deficiency Yes N
611589 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $5.10M - 0
20.106 Airport Improvement Program $3.39M Yes 0
14.850 Public and Indian Housing $938,416 Yes 1
14.170 Congregate Housing Services Program $204,792 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $31,528 - 0
20.600 State and Community Highway Safety $6,465 - 0
16.607 Bulletproof Vest Partnership Program $3,665 - 0

Contacts

Name Title Type
DZLFRPGBJW27 Clara Hilger Auditee
6515543207 Jaclyn Huegel Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the OMBs Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the City's basic financial statements. Unless noted in the table above, the pass-through entities use the same federal assistance listing numbers (ALN) as the federal grantors to identify these grants, and have not assigned any additional identifying numbers. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INSTANCES OF NONCOMPLIANCE ? U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PUBLIC AND INDIAN HOUSING ? ALN 14.850 2022-001 Internal Control and Compliance With Special Tests and Provisions Requirements Criteria ? 24 CFR ? 960. Management is responsible for establishing and maintaining effective internal control over compliance with requirements applicable to federal programs, including special tests and provisions requirements applicable to the Public and Indian Housing federal program. Condition ? During our audit, we noted that the City of South St. Paul, Minnesota (the City) did not have sufficient controls in place within the Public and Indian Housing federal program to assure compliance with federal special tests and provisions requirements, which resulted in noncompliance. The City did not have proper controls in place regarding the waiting list to verify new tenants were placed into housing, based on approved policies. Questioned Costs ? Not applicable. Context ? The condition applies to special tests and provisions requirements as noted above. Six of forty individuals added to the waiting list selected for testing were not added in accordance with the City?s policy. One of ten individuals placed into housing from the waiting list selected for testing was not placed in accordance with the City?s policy. This was not a statistically valid sample. Cause ? This was an oversight by city personnel. Repeat Finding ? This is a current year and prior year finding. Effect ? Noncompliance with the special tests and provisions requirements could be viewed as a violation of the award agreement and result in tenants being placed into housing incorrectly based on their rank on the waiting list. Recommendation ? We recommend that the City review its internal control procedures relating to special tests and provisions requirements for all federal programs. The City should verify compliance with federal special tests and provisions procedures, including the waiting list, to ensure tenants are being properly placed into housing. View of Responsible Official and Planned Corrective Actions ? The City agrees with the finding. The City has separately issued a Corrective Action Plan related to this finding.
Finding 2022-001
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INSTANCES OF NONCOMPLIANCE ? U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PUBLIC AND INDIAN HOUSING ? ALN 14.850 2022-001 Internal Control and Compliance With Special Tests and Provisions Requirements Criteria ? 24 CFR ? 960. Management is responsible for establishing and maintaining effective internal control over compliance with requirements applicable to federal programs, including special tests and provisions requirements applicable to the Public and Indian Housing federal program. Condition ? During our audit, we noted that the City of South St. Paul, Minnesota (the City) did not have sufficient controls in place within the Public and Indian Housing federal program to assure compliance with federal special tests and provisions requirements, which resulted in noncompliance. The City did not have proper controls in place regarding the waiting list to verify new tenants were placed into housing, based on approved policies. Questioned Costs ? Not applicable. Context ? The condition applies to special tests and provisions requirements as noted above. Six of forty individuals added to the waiting list selected for testing were not added in accordance with the City?s policy. One of ten individuals placed into housing from the waiting list selected for testing was not placed in accordance with the City?s policy. This was not a statistically valid sample. Cause ? This was an oversight by city personnel. Repeat Finding ? This is a current year and prior year finding. Effect ? Noncompliance with the special tests and provisions requirements could be viewed as a violation of the award agreement and result in tenants being placed into housing incorrectly based on their rank on the waiting list. Recommendation ? We recommend that the City review its internal control procedures relating to special tests and provisions requirements for all federal programs. The City should verify compliance with federal special tests and provisions procedures, including the waiting list, to ensure tenants are being properly placed into housing. View of Responsible Official and Planned Corrective Actions ? The City agrees with the finding. The City has separately issued a Corrective Action Plan related to this finding.