FAC Explorer

Audit 358024

FY End
2024-12-31
Total Expended
$1.33M
Findings
2
Programs
3
Organization: The Housing & Redevelopment Commission of the City of Watertown, Sd (SD)
Year: 2024 Accepted: 2025-06-04
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
563809 2024-003 Significant Deficiency - E
1140251 2024-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $967,943 Yes 1
14.872 Public Housing Capital Fund $203,054 - 0
14.850 Public Housing Operating Fund $162,943 - 0

Contacts

Name Title Type
GE5MXZH9P8L8 Mary Goldade Auditee
6058862867 Tara Engquist Auditor
No contacts on file

Notes to SEFA

Title: Note A – Basis of Presentation Accounting Policies: Note B – Summary of Significant Accounting Policies Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. The Commission’s summary of significant accounting policies is presented in Note 1 in the Commission’s basic financial statements. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note C – Indirect Cost Rate The Commission does not draw for indirect administrative expenses and has not elected to use the 10% de minimus cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Commission under programs of the federal government for the year ended December 31, 2024. The information 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 Commission, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Commission. The Commission received federal awards directly from federal agencies.

Finding Details

Finding 2024-003
2024-003 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Eligibility Significant Deficiency in Internal Control over Compliance Criteria: As required by HUD guidelines, the Commission is required to calculate the tenant’s rent payment using documentation from third-party verification used to calculate payment of assistance. Condition: The Commission’s control in place for review of the tenant’s rent payment used for tenant files on annual reviews was not operating effectively. In one of the 40 tenant files tested, the tenant’s payment amounts were calculated incorrectly. Cause: The Housing Representative used the incorrect income to annualize the income from the third-party verification. Effect: The reporting of an incorrect tenant rent payment could result in incorrect assistance being awarded. Questioned Costs: None Context/Sampling: A nonstatistical sample of 40 participants out of 198 participants were selected for eligibility testing. Repeat Finding from Prior Year(s): No Recommendation: We recommend additional random review completed on files by a second person to ensure calculations are completed correctly. Views of Responsible Officials: Management agrees with finding.
Finding 2024-003
2024-003 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Eligibility Significant Deficiency in Internal Control over Compliance Criteria: As required by HUD guidelines, the Commission is required to calculate the tenant’s rent payment using documentation from third-party verification used to calculate payment of assistance. Condition: The Commission’s control in place for review of the tenant’s rent payment used for tenant files on annual reviews was not operating effectively. In one of the 40 tenant files tested, the tenant’s payment amounts were calculated incorrectly. Cause: The Housing Representative used the incorrect income to annualize the income from the third-party verification. Effect: The reporting of an incorrect tenant rent payment could result in incorrect assistance being awarded. Questioned Costs: None Context/Sampling: A nonstatistical sample of 40 participants out of 198 participants were selected for eligibility testing. Repeat Finding from Prior Year(s): No Recommendation: We recommend additional random review completed on files by a second person to ensure calculations are completed correctly. Views of Responsible Officials: Management agrees with finding.