Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
As a condition of admission or continued occupancy, the tenant and other family members must
provide necessary information, documentation, and releases for the PHA to verify income eligibility (24
CFR sections 5.230, 5.609, and 982.516). This includes documentation noting eligibility of EHV
program requirements.
Condition
During review of tenant files, we noted the Authority did not maintain proper documentation to support
tenant eligibility for EHV participation.
Questioned Costs
None
Context
We tested a sample of 22 (including one EHV participant) of the Authority’s 220 tenant files and found
that proper documentation was not maintained in one tenant file.
Effect
HAP payments may be paid to a tenant who is not eligible to receive HAP funds.
Cause
Lack of appropriate training for the individual responsible for verifying eligibility requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority provides appropriate training to staff over eligibility requirements and
reviews its internal control procedures to ensure a quality control review is performed to verify all
required documentation is maintained in the tenant files.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
As a condition of admission or continued occupancy, the tenant and other family members must
provide necessary information, documentation, and releases for the PHA to verify income eligibility (24
CFR sections 5.230, 5.609, and 982.516). This includes documentation noting eligibility of EHV
program requirements.
Condition
During review of tenant files, we noted the Authority did not maintain proper documentation to support
tenant eligibility for EHV participation.
Questioned Costs
None
Context
We tested a sample of 22 (including one EHV participant) of the Authority’s 220 tenant files and found
that proper documentation was not maintained in one tenant file.
Effect
HAP payments may be paid to a tenant who is not eligible to receive HAP funds.
Cause
Lack of appropriate training for the individual responsible for verifying eligibility requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority provides appropriate training to staff over eligibility requirements and
reviews its internal control procedures to ensure a quality control review is performed to verify all
required documentation is maintained in the tenant files.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
As a condition of admission or continued occupancy, the tenant and other family members must
provide necessary information, documentation, and releases for the PHA to verify income eligibility (24
CFR sections 5.230, 5.609, and 982.516). This includes documentation noting eligibility of EHV
program requirements.
Condition
During review of tenant files, we noted the Authority did not maintain proper documentation to support
tenant eligibility for EHV participation.
Questioned Costs
None
Context
We tested a sample of 22 (including one EHV participant) of the Authority’s 220 tenant files and found
that proper documentation was not maintained in one tenant file.
Effect
HAP payments may be paid to a tenant who is not eligible to receive HAP funds.
Cause
Lack of appropriate training for the individual responsible for verifying eligibility requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority provides appropriate training to staff over eligibility requirements and
reviews its internal control procedures to ensure a quality control review is performed to verify all
required documentation is maintained in the tenant files.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the
PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent
to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published Fair
Market Rent in effect 60 days before ethe HAP contract anniversary (24 CFR sections 982.4,
982.54(d)(15), 982.158(f)(7), and 982.507).
Condition
One tested tenant was receiving HAP who was not living in a unit that was deemed to have a
reasonable rent rate.
Questioned Costs
None
Context
We tested rent reasonableness compliance requirements on 22 of the Authority’s 220 tenant files and
found that one tenant was receiving HAP that did not meet the reasonable rent criteria.
Effect
The tenant received more HAP payments than allowed due to an excessive rent cost.
Cause
Lack of controls procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews procedures and controls over rent reasonableness to ensure an
accurate assessment is performed.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the
PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent
to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published Fair
Market Rent in effect 60 days before ethe HAP contract anniversary (24 CFR sections 982.4,
982.54(d)(15), 982.158(f)(7), and 982.507).
Condition
One tested tenant was receiving HAP who was not living in a unit that was deemed to have a
reasonable rent rate.
Questioned Costs
None
Context
We tested rent reasonableness compliance requirements on 22 of the Authority’s 220 tenant files and
found that one tenant was receiving HAP that did not meet the reasonable rent criteria.
Effect
The tenant received more HAP payments than allowed due to an excessive rent cost.
Cause
Lack of controls procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews procedures and controls over rent reasonableness to ensure an
accurate assessment is performed.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the
PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent
to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published Fair
Market Rent in effect 60 days before ethe HAP contract anniversary (24 CFR sections 982.4,
982.54(d)(15), 982.158(f)(7), and 982.507).
Condition
One tested tenant was receiving HAP who was not living in a unit that was deemed to have a
reasonable rent rate.
Questioned Costs
None
Context
We tested rent reasonableness compliance requirements on 22 of the Authority’s 220 tenant files and
found that one tenant was receiving HAP that did not meet the reasonable rent criteria.
Effect
The tenant received more HAP payments than allowed due to an excessive rent cost.
Cause
Lack of controls procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews procedures and controls over rent reasonableness to ensure an
accurate assessment is performed.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data
for each utility category each year and must adjust its utility allowance schedule if there has been a rate
change of 10 percent or more for a utility category or fuel type since the last time the utility allowance
schedule was revised (24 CFR section 982.517).
Condition
The utility allowance schedule was not reviewed by a second individual prior to implementing the
schedule.
Questioned Costs
None
Context
During our review of the Authority’s utility rate data review, it was noted that a second individual did not
review the schedule prior to the schedule being implemented.
Effect
The utility rate review may have been performed incorrectly, resulting in a utility allowance schedule
being used that does not contain up-to-date rates.
Cause
Lack of control procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review its internal control policies to ensure a review over the utility
allowance schedule is performed prior to implementing the rates.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data
for each utility category each year and must adjust its utility allowance schedule if there has been a rate
change of 10 percent or more for a utility category or fuel type since the last time the utility allowance
schedule was revised (24 CFR section 982.517).
Condition
The utility allowance schedule was not reviewed by a second individual prior to implementing the
schedule.
Questioned Costs
None
Context
During our review of the Authority’s utility rate data review, it was noted that a second individual did not
review the schedule prior to the schedule being implemented.
Effect
The utility rate review may have been performed incorrectly, resulting in a utility allowance schedule
being used that does not contain up-to-date rates.
Cause
Lack of control procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review its internal control policies to ensure a review over the utility
allowance schedule is performed prior to implementing the rates.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data
for each utility category each year and must adjust its utility allowance schedule if there has been a rate
change of 10 percent or more for a utility category or fuel type since the last time the utility allowance
schedule was revised (24 CFR section 982.517).
Condition
The utility allowance schedule was not reviewed by a second individual prior to implementing the
schedule.
Questioned Costs
None
Context
During our review of the Authority’s utility rate data review, it was noted that a second individual did not
review the schedule prior to the schedule being implemented.
Effect
The utility rate review may have been performed incorrectly, resulting in a utility allowance schedule
being used that does not contain up-to-date rates.
Cause
Lack of control procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review its internal control policies to ensure a review over the utility
allowance schedule is performed prior to implementing the rates.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections.
Condition
The minimum required number of quality control re-inspections were not performed.
Questioned Costs
None
Context
During our testing of HQS quality control re-inspections, it was determined based on 24 CFR 985.2 that
the Authority did not perform the minimum required amount of 9 quality control re-inspections during the
year as they only completed 3 re-inspections.
Effect
Inspections may have been performed incorrectly that re-inspections would have caught.
Cause
The Authority did not have a proper understanding of the quality control re-inspection procedure
requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews the program requirements to ensure the appropriate number of
HQS quality control re-inspections is performed each year.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections.
Condition
The minimum required number of quality control re-inspections were not performed.
Questioned Costs
None
Context
During our testing of HQS quality control re-inspections, it was determined based on 24 CFR 985.2 that
the Authority did not perform the minimum required amount of 9 quality control re-inspections during the
year as they only completed 3 re-inspections.
Effect
Inspections may have been performed incorrectly that re-inspections would have caught.
Cause
The Authority did not have a proper understanding of the quality control re-inspection procedure
requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews the program requirements to ensure the appropriate number of
HQS quality control re-inspections is performed each year.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections.
Condition
The minimum required number of quality control re-inspections were not performed.
Questioned Costs
None
Context
During our testing of HQS quality control re-inspections, it was determined based on 24 CFR 985.2 that
the Authority did not perform the minimum required amount of 9 quality control re-inspections during the
year as they only completed 3 re-inspections.
Effect
Inspections may have been performed incorrectly that re-inspections would have caught.
Cause
The Authority did not have a proper understanding of the quality control re-inspection procedure
requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews the program requirements to ensure the appropriate number of
HQS quality control re-inspections is performed each year.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS). For units under HAP contract that fail to meet HQS, the PHA must
require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections
and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension.
Condition
Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested
file. We also noted 3 separate instances in which life-threatening deficiencies did not contain
documentation noting they were corrected within the 24-hour requirement period and an additional 2
instances in which other deficiencies did not contain documentation as to the timing of corrective action.
Questioned Costs
None
Context
We tested HQS Enforcement compliance requirements on 22 of the Authority’s 220 tenant files and
noted that a bi-annual inspection did not occur in one of the files. In a separate sample over failed
inspections, in which 6 of 56 failed inspections were reviewed, we noted 3 contained life-threatening
failures that did not contain documentation to support appropriate follow up and correction within 24
hours. Across both samples, there were also two instances in which supporting documentation lacked
notations of timing to indicate when re-inspections and corrective action took place.
Effect
Tenant may be living in units that do not meet Housing Quality Standards.
Cause
Lack of controls and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for performing and documenting HQS inspections
and follow-up on fails to ensure Housing Quality Standards are met.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS). For units under HAP contract that fail to meet HQS, the PHA must
require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections
and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension.
Condition
Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested
file. We also noted 3 separate instances in which life-threatening deficiencies did not contain
documentation noting they were corrected within the 24-hour requirement period and an additional 2
instances in which other deficiencies did not contain documentation as to the timing of corrective action.
Questioned Costs
None
Context
We tested HQS Enforcement compliance requirements on 22 of the Authority’s 220 tenant files and
noted that a bi-annual inspection did not occur in one of the files. In a separate sample over failed
inspections, in which 6 of 56 failed inspections were reviewed, we noted 3 contained life-threatening
failures that did not contain documentation to support appropriate follow up and correction within 24
hours. Across both samples, there were also two instances in which supporting documentation lacked
notations of timing to indicate when re-inspections and corrective action took place.
Effect
Tenant may be living in units that do not meet Housing Quality Standards.
Cause
Lack of controls and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for performing and documenting HQS inspections
and follow-up on fails to ensure Housing Quality Standards are met.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS). For units under HAP contract that fail to meet HQS, the PHA must
require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections
and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension.
Condition
Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested
file. We also noted 3 separate instances in which life-threatening deficiencies did not contain
documentation noting they were corrected within the 24-hour requirement period and an additional 2
instances in which other deficiencies did not contain documentation as to the timing of corrective action.
Questioned Costs
None
Context
We tested HQS Enforcement compliance requirements on 22 of the Authority’s 220 tenant files and
noted that a bi-annual inspection did not occur in one of the files. In a separate sample over failed
inspections, in which 6 of 56 failed inspections were reviewed, we noted 3 contained life-threatening
failures that did not contain documentation to support appropriate follow up and correction within 24
hours. Across both samples, there were also two instances in which supporting documentation lacked
notations of timing to indicate when re-inspections and corrective action took place.
Effect
Tenant may be living in units that do not meet Housing Quality Standards.
Cause
Lack of controls and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for performing and documenting HQS inspections
and follow-up on fails to ensure Housing Quality Standards are met.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
As a condition of admission or continued occupancy, the tenant and other family members must
provide necessary information, documentation, and releases for the PHA to verify income eligibility (24
CFR sections 5.230, 5.609, and 982.516). This includes documentation noting eligibility of EHV
program requirements.
Condition
During review of tenant files, we noted the Authority did not maintain proper documentation to support
tenant eligibility for EHV participation.
Questioned Costs
None
Context
We tested a sample of 22 (including one EHV participant) of the Authority’s 220 tenant files and found
that proper documentation was not maintained in one tenant file.
Effect
HAP payments may be paid to a tenant who is not eligible to receive HAP funds.
Cause
Lack of appropriate training for the individual responsible for verifying eligibility requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority provides appropriate training to staff over eligibility requirements and
reviews its internal control procedures to ensure a quality control review is performed to verify all
required documentation is maintained in the tenant files.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
As a condition of admission or continued occupancy, the tenant and other family members must
provide necessary information, documentation, and releases for the PHA to verify income eligibility (24
CFR sections 5.230, 5.609, and 982.516). This includes documentation noting eligibility of EHV
program requirements.
Condition
During review of tenant files, we noted the Authority did not maintain proper documentation to support
tenant eligibility for EHV participation.
Questioned Costs
None
Context
We tested a sample of 22 (including one EHV participant) of the Authority’s 220 tenant files and found
that proper documentation was not maintained in one tenant file.
Effect
HAP payments may be paid to a tenant who is not eligible to receive HAP funds.
Cause
Lack of appropriate training for the individual responsible for verifying eligibility requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority provides appropriate training to staff over eligibility requirements and
reviews its internal control procedures to ensure a quality control review is performed to verify all
required documentation is maintained in the tenant files.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
As a condition of admission or continued occupancy, the tenant and other family members must
provide necessary information, documentation, and releases for the PHA to verify income eligibility (24
CFR sections 5.230, 5.609, and 982.516). This includes documentation noting eligibility of EHV
program requirements.
Condition
During review of tenant files, we noted the Authority did not maintain proper documentation to support
tenant eligibility for EHV participation.
Questioned Costs
None
Context
We tested a sample of 22 (including one EHV participant) of the Authority’s 220 tenant files and found
that proper documentation was not maintained in one tenant file.
Effect
HAP payments may be paid to a tenant who is not eligible to receive HAP funds.
Cause
Lack of appropriate training for the individual responsible for verifying eligibility requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority provides appropriate training to staff over eligibility requirements and
reviews its internal control procedures to ensure a quality control review is performed to verify all
required documentation is maintained in the tenant files.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the
PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent
to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published Fair
Market Rent in effect 60 days before ethe HAP contract anniversary (24 CFR sections 982.4,
982.54(d)(15), 982.158(f)(7), and 982.507).
Condition
One tested tenant was receiving HAP who was not living in a unit that was deemed to have a
reasonable rent rate.
Questioned Costs
None
Context
We tested rent reasonableness compliance requirements on 22 of the Authority’s 220 tenant files and
found that one tenant was receiving HAP that did not meet the reasonable rent criteria.
Effect
The tenant received more HAP payments than allowed due to an excessive rent cost.
Cause
Lack of controls procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews procedures and controls over rent reasonableness to ensure an
accurate assessment is performed.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the
PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent
to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published Fair
Market Rent in effect 60 days before ethe HAP contract anniversary (24 CFR sections 982.4,
982.54(d)(15), 982.158(f)(7), and 982.507).
Condition
One tested tenant was receiving HAP who was not living in a unit that was deemed to have a
reasonable rent rate.
Questioned Costs
None
Context
We tested rent reasonableness compliance requirements on 22 of the Authority’s 220 tenant files and
found that one tenant was receiving HAP that did not meet the reasonable rent criteria.
Effect
The tenant received more HAP payments than allowed due to an excessive rent cost.
Cause
Lack of controls procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews procedures and controls over rent reasonableness to ensure an
accurate assessment is performed.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the
PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent
to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published Fair
Market Rent in effect 60 days before ethe HAP contract anniversary (24 CFR sections 982.4,
982.54(d)(15), 982.158(f)(7), and 982.507).
Condition
One tested tenant was receiving HAP who was not living in a unit that was deemed to have a
reasonable rent rate.
Questioned Costs
None
Context
We tested rent reasonableness compliance requirements on 22 of the Authority’s 220 tenant files and
found that one tenant was receiving HAP that did not meet the reasonable rent criteria.
Effect
The tenant received more HAP payments than allowed due to an excessive rent cost.
Cause
Lack of controls procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews procedures and controls over rent reasonableness to ensure an
accurate assessment is performed.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data
for each utility category each year and must adjust its utility allowance schedule if there has been a rate
change of 10 percent or more for a utility category or fuel type since the last time the utility allowance
schedule was revised (24 CFR section 982.517).
Condition
The utility allowance schedule was not reviewed by a second individual prior to implementing the
schedule.
Questioned Costs
None
Context
During our review of the Authority’s utility rate data review, it was noted that a second individual did not
review the schedule prior to the schedule being implemented.
Effect
The utility rate review may have been performed incorrectly, resulting in a utility allowance schedule
being used that does not contain up-to-date rates.
Cause
Lack of control procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review its internal control policies to ensure a review over the utility
allowance schedule is performed prior to implementing the rates.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data
for each utility category each year and must adjust its utility allowance schedule if there has been a rate
change of 10 percent or more for a utility category or fuel type since the last time the utility allowance
schedule was revised (24 CFR section 982.517).
Condition
The utility allowance schedule was not reviewed by a second individual prior to implementing the
schedule.
Questioned Costs
None
Context
During our review of the Authority’s utility rate data review, it was noted that a second individual did not
review the schedule prior to the schedule being implemented.
Effect
The utility rate review may have been performed incorrectly, resulting in a utility allowance schedule
being used that does not contain up-to-date rates.
Cause
Lack of control procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review its internal control policies to ensure a review over the utility
allowance schedule is performed prior to implementing the rates.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data
for each utility category each year and must adjust its utility allowance schedule if there has been a rate
change of 10 percent or more for a utility category or fuel type since the last time the utility allowance
schedule was revised (24 CFR section 982.517).
Condition
The utility allowance schedule was not reviewed by a second individual prior to implementing the
schedule.
Questioned Costs
None
Context
During our review of the Authority’s utility rate data review, it was noted that a second individual did not
review the schedule prior to the schedule being implemented.
Effect
The utility rate review may have been performed incorrectly, resulting in a utility allowance schedule
being used that does not contain up-to-date rates.
Cause
Lack of control procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review its internal control policies to ensure a review over the utility
allowance schedule is performed prior to implementing the rates.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections.
Condition
The minimum required number of quality control re-inspections were not performed.
Questioned Costs
None
Context
During our testing of HQS quality control re-inspections, it was determined based on 24 CFR 985.2 that
the Authority did not perform the minimum required amount of 9 quality control re-inspections during the
year as they only completed 3 re-inspections.
Effect
Inspections may have been performed incorrectly that re-inspections would have caught.
Cause
The Authority did not have a proper understanding of the quality control re-inspection procedure
requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews the program requirements to ensure the appropriate number of
HQS quality control re-inspections is performed each year.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections.
Condition
The minimum required number of quality control re-inspections were not performed.
Questioned Costs
None
Context
During our testing of HQS quality control re-inspections, it was determined based on 24 CFR 985.2 that
the Authority did not perform the minimum required amount of 9 quality control re-inspections during the
year as they only completed 3 re-inspections.
Effect
Inspections may have been performed incorrectly that re-inspections would have caught.
Cause
The Authority did not have a proper understanding of the quality control re-inspection procedure
requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews the program requirements to ensure the appropriate number of
HQS quality control re-inspections is performed each year.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections.
Condition
The minimum required number of quality control re-inspections were not performed.
Questioned Costs
None
Context
During our testing of HQS quality control re-inspections, it was determined based on 24 CFR 985.2 that
the Authority did not perform the minimum required amount of 9 quality control re-inspections during the
year as they only completed 3 re-inspections.
Effect
Inspections may have been performed incorrectly that re-inspections would have caught.
Cause
The Authority did not have a proper understanding of the quality control re-inspection procedure
requirements.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews the program requirements to ensure the appropriate number of
HQS quality control re-inspections is performed each year.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS). For units under HAP contract that fail to meet HQS, the PHA must
require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections
and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension.
Condition
Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested
file. We also noted 3 separate instances in which life-threatening deficiencies did not contain
documentation noting they were corrected within the 24-hour requirement period and an additional 2
instances in which other deficiencies did not contain documentation as to the timing of corrective action.
Questioned Costs
None
Context
We tested HQS Enforcement compliance requirements on 22 of the Authority’s 220 tenant files and
noted that a bi-annual inspection did not occur in one of the files. In a separate sample over failed
inspections, in which 6 of 56 failed inspections were reviewed, we noted 3 contained life-threatening
failures that did not contain documentation to support appropriate follow up and correction within 24
hours. Across both samples, there were also two instances in which supporting documentation lacked
notations of timing to indicate when re-inspections and corrective action took place.
Effect
Tenant may be living in units that do not meet Housing Quality Standards.
Cause
Lack of controls and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for performing and documenting HQS inspections
and follow-up on fails to ensure Housing Quality Standards are met.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS). For units under HAP contract that fail to meet HQS, the PHA must
require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections
and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension.
Condition
Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested
file. We also noted 3 separate instances in which life-threatening deficiencies did not contain
documentation noting they were corrected within the 24-hour requirement period and an additional 2
instances in which other deficiencies did not contain documentation as to the timing of corrective action.
Questioned Costs
None
Context
We tested HQS Enforcement compliance requirements on 22 of the Authority’s 220 tenant files and
noted that a bi-annual inspection did not occur in one of the files. In a separate sample over failed
inspections, in which 6 of 56 failed inspections were reviewed, we noted 3 contained life-threatening
failures that did not contain documentation to support appropriate follow up and correction within 24
hours. Across both samples, there were also two instances in which supporting documentation lacked
notations of timing to indicate when re-inspections and corrective action took place.
Effect
Tenant may be living in units that do not meet Housing Quality Standards.
Cause
Lack of controls and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for performing and documenting HQS inspections
and follow-up on fails to ensure Housing Quality Standards are met.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets
Housing Quality Standards (HQS). For units under HAP contract that fail to meet HQS, the PHA must
require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections
and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension.
Condition
Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested
file. We also noted 3 separate instances in which life-threatening deficiencies did not contain
documentation noting they were corrected within the 24-hour requirement period and an additional 2
instances in which other deficiencies did not contain documentation as to the timing of corrective action.
Questioned Costs
None
Context
We tested HQS Enforcement compliance requirements on 22 of the Authority’s 220 tenant files and
noted that a bi-annual inspection did not occur in one of the files. In a separate sample over failed
inspections, in which 6 of 56 failed inspections were reviewed, we noted 3 contained life-threatening
failures that did not contain documentation to support appropriate follow up and correction within 24
hours. Across both samples, there were also two instances in which supporting documentation lacked
notations of timing to indicate when re-inspections and corrective action took place.
Effect
Tenant may be living in units that do not meet Housing Quality Standards.
Cause
Lack of controls and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for performing and documenting HQS inspections
and follow-up on fails to ensure Housing Quality Standards are met.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.