FAC Explorer

Audit 349501

FY End
2024-06-30
Total Expended
$2.93M
Findings
6
Programs
3
Organization: Kandiyohi County Housing and Redevelopment Authority (MN)
Year: 2024 Accepted: 2025-03-28
Auditor: Westberg Eischens Pllp

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
538783 2024-001 Material Weakness Yes P
538784 2024-001 Material Weakness Yes P
538785 2024-001 Material Weakness Yes P
1115225 2024-001 Material Weakness Yes P
1115226 2024-001 Material Weakness Yes P
1115227 2024-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $553,657 Yes 1
14.181 Supportive Housing for Persons with Disabilities $25,239 - 0
14.267 Continuum of Care Program $6,170 - 0

Contacts

Name Title Type
LTHSSLHNX1Q5 Jill Bengtson Auditee
3202357831 Scott Van Buren Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Scope of Audit Pursuant to Uniform Guidance: The Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of the Authority. All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies or other entities are included in the schedule. Basis of Presentation: The Authority's Schedule of Expenditures of Federal Awards has been prepared using the same basis of accounting as the June 30, 2024 financial statements of the Authority's enterprise funds. The Authority reports to HUD using the accrual basis of accounting. A complete description of the basis of accounting is included in Note 1 to those financial statements. The Authority did not elect to use the 10 percent de minimis indirect cost rate. Contingencies: In connection with various federal programs, the Authority is obligated to administer related programs and spend the funds in accordance with regulatory restrictions, and is subject to audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved may require the Authority to refund program funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2024-001
Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements of the financial statements on a timely basis. A control deficiency that typically is considered significant is the identification by the auditor of a material misstatement in the financial statements that was not identified by the Authority's internal control. Condition: During our audit we proposed adjustments that resulted in significant changes to the Authority's financial statements. Questioned Costs: None. Effect: The Authority's inability to detect material misstatements in the financial statements increases the likelihood that the financial statements may not be presented fairly. Cause: Inadequate internal controls and monitoring of internal controls by the Authority's staff. Repeat Finding: This finding was reported in the prior year as finding 2023-001. Recommendation: We recommend that the Authority's management review internal controls currently in place, then design and implement procedures to improve internal controls over financial reporting to detect misstatements in the financial statements.
Finding 2024-001
Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements of the financial statements on a timely basis. A control deficiency that typically is considered significant is the identification by the auditor of a material misstatement in the financial statements that was not identified by the Authority's internal control. Condition: During our audit we proposed adjustments that resulted in significant changes to the Authority's financial statements. Questioned Costs: None. Effect: The Authority's inability to detect material misstatements in the financial statements increases the likelihood that the financial statements may not be presented fairly. Cause: Inadequate internal controls and monitoring of internal controls by the Authority's staff. Repeat Finding: This finding was reported in the prior year as finding 2023-001. Recommendation: We recommend that the Authority's management review internal controls currently in place, then design and implement procedures to improve internal controls over financial reporting to detect misstatements in the financial statements.
Finding 2024-001
Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements of the financial statements on a timely basis. A control deficiency that typically is considered significant is the identification by the auditor of a material misstatement in the financial statements that was not identified by the Authority's internal control. Condition: During our audit we proposed adjustments that resulted in significant changes to the Authority's financial statements. Questioned Costs: None. Effect: The Authority's inability to detect material misstatements in the financial statements increases the likelihood that the financial statements may not be presented fairly. Cause: Inadequate internal controls and monitoring of internal controls by the Authority's staff. Repeat Finding: This finding was reported in the prior year as finding 2023-001. Recommendation: We recommend that the Authority's management review internal controls currently in place, then design and implement procedures to improve internal controls over financial reporting to detect misstatements in the financial statements.
Finding 2024-001
Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements of the financial statements on a timely basis. A control deficiency that typically is considered significant is the identification by the auditor of a material misstatement in the financial statements that was not identified by the Authority's internal control. Condition: During our audit we proposed adjustments that resulted in significant changes to the Authority's financial statements. Questioned Costs: None. Effect: The Authority's inability to detect material misstatements in the financial statements increases the likelihood that the financial statements may not be presented fairly. Cause: Inadequate internal controls and monitoring of internal controls by the Authority's staff. Repeat Finding: This finding was reported in the prior year as finding 2023-001. Recommendation: We recommend that the Authority's management review internal controls currently in place, then design and implement procedures to improve internal controls over financial reporting to detect misstatements in the financial statements.
Finding 2024-001
Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements of the financial statements on a timely basis. A control deficiency that typically is considered significant is the identification by the auditor of a material misstatement in the financial statements that was not identified by the Authority's internal control. Condition: During our audit we proposed adjustments that resulted in significant changes to the Authority's financial statements. Questioned Costs: None. Effect: The Authority's inability to detect material misstatements in the financial statements increases the likelihood that the financial statements may not be presented fairly. Cause: Inadequate internal controls and monitoring of internal controls by the Authority's staff. Repeat Finding: This finding was reported in the prior year as finding 2023-001. Recommendation: We recommend that the Authority's management review internal controls currently in place, then design and implement procedures to improve internal controls over financial reporting to detect misstatements in the financial statements.
Finding 2024-001
Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements of the financial statements on a timely basis. A control deficiency that typically is considered significant is the identification by the auditor of a material misstatement in the financial statements that was not identified by the Authority's internal control. Condition: During our audit we proposed adjustments that resulted in significant changes to the Authority's financial statements. Questioned Costs: None. Effect: The Authority's inability to detect material misstatements in the financial statements increases the likelihood that the financial statements may not be presented fairly. Cause: Inadequate internal controls and monitoring of internal controls by the Authority's staff. Repeat Finding: This finding was reported in the prior year as finding 2023-001. Recommendation: We recommend that the Authority's management review internal controls currently in place, then design and implement procedures to improve internal controls over financial reporting to detect misstatements in the financial statements.