Audit 40655

FY End
2022-12-31
Total Expended
$13.66M
Findings
12
Programs
9
Year: 2022 Accepted: 2023-09-29

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
45770 2022-004 Significant Deficiency - N
45771 2022-005 Significant Deficiency Yes N
45772 2022-004 Significant Deficiency - N
45773 2022-005 Significant Deficiency Yes N
45774 2022-004 Significant Deficiency - N
45775 2022-005 Significant Deficiency Yes N
622212 2022-004 Significant Deficiency - N
622213 2022-005 Significant Deficiency Yes N
622214 2022-004 Significant Deficiency - N
622215 2022-005 Significant Deficiency Yes N
622216 2022-004 Significant Deficiency - N
622217 2022-005 Significant Deficiency Yes N

Contacts

Name Title Type
CJVNKBFJUCJ8 Tom Keller Auditee
7014782565 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (Schedule) are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the 10% de minimis cost rate. The accompanying Schedule includes the federal award activity of Fargo Housing and Redevelopment Authority 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. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.

Finding Details

Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition We noted the Authority did not meet the minimum requirements for quality control re-inspections. The Authority had performed 16 out of the required 28 re-inspections. Questioned Costs None Context We reviewed the Authority?s documentation and noted 16 out of the required 28 quality control re-inspections were performed. Effect Inspected units may not have met Housing Quality Standards which could result in HAP payments being made for units that were not up to the Housing Quality Standards. Cause Additional units that did not house the Authority?s tenant were inspected and included as part of the required amount. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority reviews quality control re-inspection standards to ensure compliance. Views of Responsible Officials The Authority is aware of the issue and has taken subsequent steps to ensure compliance with the requirement.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We tested compliance with the Authority?s rent reasonableness forms in 53 tenant files and found that two tenants did not have a rent reasonableness form for an increase in rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 53 of the Authority?s 1,713 tenant files for rent reasonableness requirements. Effect HAP payments could have been paid to a tenant where rent was not considered reasonable. Cause Upon change in rent during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding See 2021-005. Recommendation We recommend there be a second party review of the file to ensure all appropriate documents are included. Views of Responsible Officials The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition We noted the Authority did not meet the minimum requirements for quality control re-inspections. The Authority had performed 16 out of the required 28 re-inspections. Questioned Costs None Context We reviewed the Authority?s documentation and noted 16 out of the required 28 quality control re-inspections were performed. Effect Inspected units may not have met Housing Quality Standards which could result in HAP payments being made for units that were not up to the Housing Quality Standards. Cause Additional units that did not house the Authority?s tenant were inspected and included as part of the required amount. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority reviews quality control re-inspection standards to ensure compliance. Views of Responsible Officials The Authority is aware of the issue and has taken subsequent steps to ensure compliance with the requirement.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We tested compliance with the Authority?s rent reasonableness forms in 53 tenant files and found that two tenants did not have a rent reasonableness form for an increase in rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 53 of the Authority?s 1,713 tenant files for rent reasonableness requirements. Effect HAP payments could have been paid to a tenant where rent was not considered reasonable. Cause Upon change in rent during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding See 2021-005. Recommendation We recommend there be a second party review of the file to ensure all appropriate documents are included. Views of Responsible Officials The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition We noted the Authority did not meet the minimum requirements for quality control re-inspections. The Authority had performed 16 out of the required 28 re-inspections. Questioned Costs None Context We reviewed the Authority?s documentation and noted 16 out of the required 28 quality control re-inspections were performed. Effect Inspected units may not have met Housing Quality Standards which could result in HAP payments being made for units that were not up to the Housing Quality Standards. Cause Additional units that did not house the Authority?s tenant were inspected and included as part of the required amount. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority reviews quality control re-inspection standards to ensure compliance. Views of Responsible Officials The Authority is aware of the issue and has taken subsequent steps to ensure compliance with the requirement.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We tested compliance with the Authority?s rent reasonableness forms in 53 tenant files and found that two tenants did not have a rent reasonableness form for an increase in rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 53 of the Authority?s 1,713 tenant files for rent reasonableness requirements. Effect HAP payments could have been paid to a tenant where rent was not considered reasonable. Cause Upon change in rent during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding See 2021-005. Recommendation We recommend there be a second party review of the file to ensure all appropriate documents are included. Views of Responsible Officials The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition We noted the Authority did not meet the minimum requirements for quality control re-inspections. The Authority had performed 16 out of the required 28 re-inspections. Questioned Costs None Context We reviewed the Authority?s documentation and noted 16 out of the required 28 quality control re-inspections were performed. Effect Inspected units may not have met Housing Quality Standards which could result in HAP payments being made for units that were not up to the Housing Quality Standards. Cause Additional units that did not house the Authority?s tenant were inspected and included as part of the required amount. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority reviews quality control re-inspection standards to ensure compliance. Views of Responsible Officials The Authority is aware of the issue and has taken subsequent steps to ensure compliance with the requirement.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We tested compliance with the Authority?s rent reasonableness forms in 53 tenant files and found that two tenants did not have a rent reasonableness form for an increase in rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 53 of the Authority?s 1,713 tenant files for rent reasonableness requirements. Effect HAP payments could have been paid to a tenant where rent was not considered reasonable. Cause Upon change in rent during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding See 2021-005. Recommendation We recommend there be a second party review of the file to ensure all appropriate documents are included. Views of Responsible Officials The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition We noted the Authority did not meet the minimum requirements for quality control re-inspections. The Authority had performed 16 out of the required 28 re-inspections. Questioned Costs None Context We reviewed the Authority?s documentation and noted 16 out of the required 28 quality control re-inspections were performed. Effect Inspected units may not have met Housing Quality Standards which could result in HAP payments being made for units that were not up to the Housing Quality Standards. Cause Additional units that did not house the Authority?s tenant were inspected and included as part of the required amount. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority reviews quality control re-inspection standards to ensure compliance. Views of Responsible Officials The Authority is aware of the issue and has taken subsequent steps to ensure compliance with the requirement.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We tested compliance with the Authority?s rent reasonableness forms in 53 tenant files and found that two tenants did not have a rent reasonableness form for an increase in rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 53 of the Authority?s 1,713 tenant files for rent reasonableness requirements. Effect HAP payments could have been paid to a tenant where rent was not considered reasonable. Cause Upon change in rent during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding See 2021-005. Recommendation We recommend there be a second party review of the file to ensure all appropriate documents are included. Views of Responsible Officials The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition We noted the Authority did not meet the minimum requirements for quality control re-inspections. The Authority had performed 16 out of the required 28 re-inspections. Questioned Costs None Context We reviewed the Authority?s documentation and noted 16 out of the required 28 quality control re-inspections were performed. Effect Inspected units may not have met Housing Quality Standards which could result in HAP payments being made for units that were not up to the Housing Quality Standards. Cause Additional units that did not house the Authority?s tenant were inspected and included as part of the required amount. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority reviews quality control re-inspection standards to ensure compliance. Views of Responsible Officials The Authority is aware of the issue and has taken subsequent steps to ensure compliance with the requirement.
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We tested compliance with the Authority?s rent reasonableness forms in 53 tenant files and found that two tenants did not have a rent reasonableness form for an increase in rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 53 of the Authority?s 1,713 tenant files for rent reasonableness requirements. Effect HAP payments could have been paid to a tenant where rent was not considered reasonable. Cause Upon change in rent during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding See 2021-005. Recommendation We recommend there be a second party review of the file to ensure all appropriate documents are included. Views of Responsible Officials The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file.