FAC Explorer

Audit 34245

FY End
2022-12-31
Total Expended
$11.65M
Findings
2
Programs
8
Organization: The Housing and Redevelopment Authority of St. Cloud (MN)
Year: 2022 Accepted: 2023-05-15
Auditor: Redpath and Company LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29918 2022-001 Significant Deficiency - N
606360 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $7.86M Yes 1
14.872 Public Housing Capital Fund $729,121 - 0
14.850 Public and Indian Housing $663,179 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $611,992 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $378,504 - 0
14.267 Continuum of Care Program $364,600 - 0
14.218 Community Development Block Grants/entitlement Grants $253,478 - 0
14.879 Mainstream Vouchers $251,634 Yes 0

Contacts

Name Title Type
GE4MG4K5K4H6 Karen Rizer Auditee
3202023148 Rebecca Petersen Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: Note 1: This Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Housing and Redevelopment Authority of St. Cloud (the HRA) under programs of the federal government for the year ended December 31, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the HRA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the HRA. De Minimis Rate Used: N Rate Explanation: Note 2: Expenditures reported in this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The HRA has not charged any indirect costs to federal award programs for the year ended December 31, 2022. Therefore, the election of the de minimis cost rate is not applicable. As part of the Housing Choice Voucher Program, the HRA elected to administer portable vouchers totaling $1,291,232 and related administration fees totaling $68,810, as the receiving public housing authority (PHA) for various initial PHAs throughout the United States. These amounts passed through the initial PHAs have been excluded from the Housing Choice Voucher Program amount above.
Title: Note 4 Accounting Policies: Note 1: This Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Housing and Redevelopment Authority of St. Cloud (the HRA) under programs of the federal government for the year ended December 31, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the HRA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the HRA. De Minimis Rate Used: N Rate Explanation: Note 2: Expenditures reported in this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The HRA has not charged any indirect costs to federal award programs for the year ended December 31, 2022. Therefore, the election of the de minimis cost rate is not applicable. The HRA has no subrecipients.

Finding Details

Finding 2022-001
2022-001 Lack of Adherence to Policies in Administrative Plan - Reopening the Waitlist - Assistance Listing No. 14.871 Criteria: The HRA's administrative plan states that "if the waiting list has been closed, it cannot be reopened until the HRA publishes a notice in local newspapers of general circulation, minority media, and other suitable media outlets. The notice must comply with HUD fair housing requirements and must specify who may apply, where and when applications will be received. HRA Policy The HRA will announce the reopening of the waiting list at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice. The HRA will give public notice by publishing the relevant information in suitable media outlets including, but not limited to: St. Cloud Times." Condition: The HRA opened its waitlist in 2022 and did not publish public notice of the opening in the St. Cloud Times. Cause: HRA staff did not follow the administrative plan as outlined in the criteria. We understand that the infrequency in which the HRA opens its waitlist may be a contributing factor to the lack of publication. Effect: The auditor is not in a position to determine the effect of the HRA not following its established policies. However, failure to follow policies increases the risk that noncompliance will occur and not be detected in a timely manner. Recommendation: We recommend the HRA takes steps to ensure that the policies in the administrative plan are followed. Response: The HRA intended to publish the opening of the Housing Choice Voucher waitlist in the St. Cloud Times. Due to staff error, it was not published. While we errored in not publishing notice in a local newspaper, the waitlist opening was widely advertised throughout our jurisdiction via the Central MN CoC, Adult Mental Health Initiative, FHPAP advisory committee, HousingLink, NAACP, St. Cloud Area Human Services Council, Hands Across the World, United Way 211, Emergency Food and Shelter Program Committee, SCSU Multicultural Resource Center, HRA website, HRA office signage, and at all HRA properties. The HRA has implemented additional internal controls to ensure the required publication is not missed in the future.
Finding 2022-001
2022-001 Lack of Adherence to Policies in Administrative Plan - Reopening the Waitlist - Assistance Listing No. 14.871 Criteria: The HRA's administrative plan states that "if the waiting list has been closed, it cannot be reopened until the HRA publishes a notice in local newspapers of general circulation, minority media, and other suitable media outlets. The notice must comply with HUD fair housing requirements and must specify who may apply, where and when applications will be received. HRA Policy The HRA will announce the reopening of the waiting list at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice. The HRA will give public notice by publishing the relevant information in suitable media outlets including, but not limited to: St. Cloud Times." Condition: The HRA opened its waitlist in 2022 and did not publish public notice of the opening in the St. Cloud Times. Cause: HRA staff did not follow the administrative plan as outlined in the criteria. We understand that the infrequency in which the HRA opens its waitlist may be a contributing factor to the lack of publication. Effect: The auditor is not in a position to determine the effect of the HRA not following its established policies. However, failure to follow policies increases the risk that noncompliance will occur and not be detected in a timely manner. Recommendation: We recommend the HRA takes steps to ensure that the policies in the administrative plan are followed. Response: The HRA intended to publish the opening of the Housing Choice Voucher waitlist in the St. Cloud Times. Due to staff error, it was not published. While we errored in not publishing notice in a local newspaper, the waitlist opening was widely advertised throughout our jurisdiction via the Central MN CoC, Adult Mental Health Initiative, FHPAP advisory committee, HousingLink, NAACP, St. Cloud Area Human Services Council, Hands Across the World, United Way 211, Emergency Food and Shelter Program Committee, SCSU Multicultural Resource Center, HRA website, HRA office signage, and at all HRA properties. The HRA has implemented additional internal controls to ensure the required publication is not missed in the future.