FAC Explorer

Audit 42097

FY End
2022-12-31
Total Expended
$1.23M
Findings
4
Programs
6
Organization: Housing and Redevelopment Authority of Todd County (MN)
Year: 2022 Accepted: 2023-08-10
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
49814 2022-003 Material Weakness Yes N
49815 2022-003 Material Weakness Yes N
626256 2022-003 Material Weakness Yes N
626257 2022-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $744,139 Yes 1
14.879 Mainstream Vouchers $224,603 Yes 1
10.415 Rural Rental Housing Loans $154,870 - 0
10.427 Rural Rental Assistance Payments $49,516 - 0
14.850 Public and Indian Housing $47,115 - 0
14.872 Public Housing Capital Fund $10,484 - 0

Contacts

Name Title Type
KKD5CFQCF9M5 Kim Wallace Auditee
3205946388 Douglas P. Host Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 REPORTING ENTITY: The schedule of expenditures of federal awards (the Schedule) presents the federal award programs expended by the Housing and Redevelopment Authority of Todd County (HRA). The Authority's reporting entity is defined in Note 1 to the financial statements. NOTE 2 BASIS OF PRESENTATION: The accompanying Schedule includes the federal grant activity of Housing and Redevelopment Authority of Todd County 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 (Uniform Guidance) from the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of Housing and Redevelopment Authority of Todd County, it is not intended to and does not present the financial position or changes in net position of Housing and Redevelopment Authority of Todd County. NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the schedule are reported on the full accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Housing and Redevelopment Authority of Todd County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.879 Passed Through: Direct Award Pass Through Number: N/A Compliance Requirement Affected: Special Provisions Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. OMB Compliance Supplement ? Special Provisions. Condition/Context: During testing of the Housing Voucher Cluster, it was noted that there was no review over certain special provisions required by the program. No internal review process is in place. Questioned Costs: Not applicable. Possible Effect: The lack of internal controls over special provisions could result in inaccurate reimbursement requests or providing to ineligible tenants. Cause: The Authority has only one individual working with the special provisions. Repeat Finding: Yes, 2021-003 Recommendation: We recommend that the Authority design and implement internal controls over special provisions. Other provisions, such as reasonable rent, housing quality standards inspections, and HQS enforcement, should be reviewed by someone independent of the initial preparation/inspection. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.
Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.879 Passed Through: Direct Award Pass Through Number: N/A Compliance Requirement Affected: Special Provisions Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. OMB Compliance Supplement ? Special Provisions. Condition/Context: During testing of the Housing Voucher Cluster, it was noted that there was no review over certain special provisions required by the program. No internal review process is in place. Questioned Costs: Not applicable. Possible Effect: The lack of internal controls over special provisions could result in inaccurate reimbursement requests or providing to ineligible tenants. Cause: The Authority has only one individual working with the special provisions. Repeat Finding: Yes, 2021-003 Recommendation: We recommend that the Authority design and implement internal controls over special provisions. Other provisions, such as reasonable rent, housing quality standards inspections, and HQS enforcement, should be reviewed by someone independent of the initial preparation/inspection. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.
Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.879 Passed Through: Direct Award Pass Through Number: N/A Compliance Requirement Affected: Special Provisions Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. OMB Compliance Supplement ? Special Provisions. Condition/Context: During testing of the Housing Voucher Cluster, it was noted that there was no review over certain special provisions required by the program. No internal review process is in place. Questioned Costs: Not applicable. Possible Effect: The lack of internal controls over special provisions could result in inaccurate reimbursement requests or providing to ineligible tenants. Cause: The Authority has only one individual working with the special provisions. Repeat Finding: Yes, 2021-003 Recommendation: We recommend that the Authority design and implement internal controls over special provisions. Other provisions, such as reasonable rent, housing quality standards inspections, and HQS enforcement, should be reviewed by someone independent of the initial preparation/inspection. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.
Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.879 Passed Through: Direct Award Pass Through Number: N/A Compliance Requirement Affected: Special Provisions Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. OMB Compliance Supplement ? Special Provisions. Condition/Context: During testing of the Housing Voucher Cluster, it was noted that there was no review over certain special provisions required by the program. No internal review process is in place. Questioned Costs: Not applicable. Possible Effect: The lack of internal controls over special provisions could result in inaccurate reimbursement requests or providing to ineligible tenants. Cause: The Authority has only one individual working with the special provisions. Repeat Finding: Yes, 2021-003 Recommendation: We recommend that the Authority design and implement internal controls over special provisions. Other provisions, such as reasonable rent, housing quality standards inspections, and HQS enforcement, should be reviewed by someone independent of the initial preparation/inspection. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.