FAC Explorer

Audit 410002

FY End
2025-12-31
Total Expended
$1.09M
Findings
1
Programs
2
Organization: Housing and Redevelopment Authority of Owatonna (MN)
Year: 2025 Accepted: 2026-08-28
Auditor: BERGANKDV LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1228263 2025-002 Material Weakness Yes ELN

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $842,379 Yes 1
14.879 MAINSTREAM VOUCHERS $251,906 Yes 0

Contacts

Name Title Type
KCQKLC343VL8 Troy Klecker Auditee
5077747316 Andrew Grice 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.
The expenditures on this schedule are on the modified accrual basis of accounting, which is described in Note 1 to the basic financial statements of the HRA. 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 HRA has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2025-002
Audit Finding 2025-002 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. 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. 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. Cause: There are a limited number of office employees. Effect or Potential Effect: There is potential for error in reports, selections or ineligible individuals receiving benefits. 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: The HRA is aware of the limited segregation of duties as a result of our limited number of staffing. There is no disagreement with the audit finding. SECTION IV – PRIOR YEAR FINDINGS AND QUESTIONED COSTS None