FAC Explorer

Audit 367240

FY End
2024-12-31
Total Expended
$1.03M
Findings
2
Programs
2
Organization: Housing and Redevelopment Authority of Owatonna (MN)
Year: 2024 Accepted: 2025-09-24
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1154920 2024-003 Material Weakness Yes P
1154921 2024-003 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $839,088 Yes 1
14.879 Mainstream Vouchers $191,521 Yes 1

Contacts

Name Title Type
KCQKLC343VL8 Emily Burns Auditee
5076767159 Mary Reedy Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards presents the activities of the federal awards (the Schedule) programs expended by the HRA. The HRA’s reporting entity is defined in Note 1 to the financial statements. 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 or changes in net position of the HRA.
N/A – The pass-through entity identifying number is unknown or doesn’t have one because of direct funding.

Finding Details

Finding 2024-003
Lack of Proper Review – Allowable Activities/Costs, Eligibility, Reporting, and Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2024 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: There is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Criteria or Specific Requirement: The HRA is required to have controls in place to ensure eligible persons are receiving benefits and that the program is meeting all of the federal requirements. Context: During testing, it was noted that there is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Effect: There is potential for error in reports, selections or ineligible individuals receiving benefits. Cause: Lack of personnel. Repeat Finding: Yes, see finding 2023-002. Recommendation: We recommend the HRA implement controls over all areas of the federal program so that segregation of duties are in place and working. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2024-003
Lack of Proper Review – Allowable Activities/Costs, Eligibility, Reporting, and Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2024 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: There is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Criteria or Specific Requirement: The HRA is required to have controls in place to ensure eligible persons are receiving benefits and that the program is meeting all of the federal requirements. Context: During testing, it was noted that there is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Effect: There is potential for error in reports, selections or ineligible individuals receiving benefits. Cause: Lack of personnel. Repeat Finding: Yes, see finding 2023-002. Recommendation: We recommend the HRA implement controls over all areas of the federal program so that segregation of duties are in place and working. Views of Responsible Officials: There is no disagreement with the audit finding.