FAC Explorer

Audit 42572

FY End
2022-06-30
Total Expended
$797,581
Findings
8
Programs
5
Organization: Housing and Redevelopment Authority of Wadena (MN)
Year: 2022 Accepted: 2023-03-28
Auditor: Miller McDonald INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50885 2022-003 Significant Deficiency Yes L
50886 2022-004 Significant Deficiency - N
50887 2022-003 Significant Deficiency Yes L
50888 2022-004 Significant Deficiency - N
627327 2022-003 Significant Deficiency Yes L
627328 2022-004 Significant Deficiency - N
627329 2022-003 Significant Deficiency Yes L
627330 2022-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $309,739 Yes 2
14.182 Section 8 New Construction and Substantial Rehabilitation $248,921 - 0
14.850 Public and Indian Housing $156,803 - 0
14.872 Public Housing Capital Fund $65,068 - 0
14.879 Mainstream Vouchers $17,050 Yes 2

Contacts

Name Title Type
UTNNUMBJ98N6 Maria Marthaler Auditee
2186317723 Jon Roscoe Auditor
No contacts on file

Notes to SEFA

Title: Pass-through Entity Identifying Numbers Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activityof the Housing and Redevelopment Authority of Wadena under programs of the federal governmentfor the year ended June 30, 2022. The information in this schedule is presented on the accrual basisof accounting and in accordance with the requirements of 2 CFR Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Therefore, some amounts presented in this schedule may differ from amounts presented in, or usedin the presentation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Pass-through entity identifying numbers, if any, are presented where available.
Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activityof the Housing and Redevelopment Authority of Wadena under programs of the federal governmentfor the year ended June 30, 2022. The information in this schedule is presented on the accrual basisof accounting and in accordance with the requirements of 2 CFR Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Therefore, some amounts presented in this schedule may differ from amounts presented in, or usedin the presentation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Housing and Redevelopment Authority of Wadena did not pass any federal money tosubrecipients.

Finding Details

Finding 2022-003
Finding 2022-003 ? Housing Voucher Cluster, CFDA No. 14.871 and 14.879 ? Reporting Criteria Pursuant to 24 CFR 982.158, the Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements. HUD uses HUD-52681-B, Voucher for Payment of Annual Contributions and Operation Statement, via the Voucher Management System (VMS) to monitor the Authority?s Housing Choice Voucher program financial and operational performance. Condition During the audit we noted reporting issues in reporting the Authority?s restricted net position via the VMS. Activity related to the Mainstream grant were not included in the total. Cause The Authority does not have adequate levels of controls in place over reviewing reports. Repeat Finding Yes, 2021-002 Effect The Authority reported inaccurate information to HUD. Recommendation We recommend that management have more procedures in place to effectively reconcile, review, and submit required reports to HUD. Views of Responsible Official The Authority agrees with the finding.
Finding 2022-004
Finding 2022-004 ? Housing Voucher Cluster, CFDA No. 14.871 and 14.879 ? Inspections Criteria Pursuant to 24 CFR 982.158(d) and 982.404, the Authority must follow up on the correction of failed inspections within 24 hours for life threatening housing quality standard (HQS) deficiencies or 30 calendar days for all other HQS deficiencies. Condition During the audit we noted one failed inspection was not followed up prior to the 30 day requirement Cause The Authority?s controls over failed inspections were not followed. Repeat Finding No Effect The Authority could not determine if the HQS deficiency was corrected in a timely manner. Recommendation We recommend that management review their controls over inspections to ensure they are implemented. Views of Responsible Official The Authority agrees with the finding.
Finding 2022-003
Finding 2022-003 ? Housing Voucher Cluster, CFDA No. 14.871 and 14.879 ? Reporting Criteria Pursuant to 24 CFR 982.158, the Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements. HUD uses HUD-52681-B, Voucher for Payment of Annual Contributions and Operation Statement, via the Voucher Management System (VMS) to monitor the Authority?s Housing Choice Voucher program financial and operational performance. Condition During the audit we noted reporting issues in reporting the Authority?s restricted net position via the VMS. Activity related to the Mainstream grant were not included in the total. Cause The Authority does not have adequate levels of controls in place over reviewing reports. Repeat Finding Yes, 2021-002 Effect The Authority reported inaccurate information to HUD. Recommendation We recommend that management have more procedures in place to effectively reconcile, review, and submit required reports to HUD. Views of Responsible Official The Authority agrees with the finding.
Finding 2022-004
Finding 2022-004 ? Housing Voucher Cluster, CFDA No. 14.871 and 14.879 ? Inspections Criteria Pursuant to 24 CFR 982.158(d) and 982.404, the Authority must follow up on the correction of failed inspections within 24 hours for life threatening housing quality standard (HQS) deficiencies or 30 calendar days for all other HQS deficiencies. Condition During the audit we noted one failed inspection was not followed up prior to the 30 day requirement Cause The Authority?s controls over failed inspections were not followed. Repeat Finding No Effect The Authority could not determine if the HQS deficiency was corrected in a timely manner. Recommendation We recommend that management review their controls over inspections to ensure they are implemented. Views of Responsible Official The Authority agrees with the finding.
Finding 2022-003
Finding 2022-003 ? Housing Voucher Cluster, CFDA No. 14.871 and 14.879 ? Reporting Criteria Pursuant to 24 CFR 982.158, the Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements. HUD uses HUD-52681-B, Voucher for Payment of Annual Contributions and Operation Statement, via the Voucher Management System (VMS) to monitor the Authority?s Housing Choice Voucher program financial and operational performance. Condition During the audit we noted reporting issues in reporting the Authority?s restricted net position via the VMS. Activity related to the Mainstream grant were not included in the total. Cause The Authority does not have adequate levels of controls in place over reviewing reports. Repeat Finding Yes, 2021-002 Effect The Authority reported inaccurate information to HUD. Recommendation We recommend that management have more procedures in place to effectively reconcile, review, and submit required reports to HUD. Views of Responsible Official The Authority agrees with the finding.
Finding 2022-004
Finding 2022-004 ? Housing Voucher Cluster, CFDA No. 14.871 and 14.879 ? Inspections Criteria Pursuant to 24 CFR 982.158(d) and 982.404, the Authority must follow up on the correction of failed inspections within 24 hours for life threatening housing quality standard (HQS) deficiencies or 30 calendar days for all other HQS deficiencies. Condition During the audit we noted one failed inspection was not followed up prior to the 30 day requirement Cause The Authority?s controls over failed inspections were not followed. Repeat Finding No Effect The Authority could not determine if the HQS deficiency was corrected in a timely manner. Recommendation We recommend that management review their controls over inspections to ensure they are implemented. Views of Responsible Official The Authority agrees with the finding.
Finding 2022-003
Finding 2022-003 ? Housing Voucher Cluster, CFDA No. 14.871 and 14.879 ? Reporting Criteria Pursuant to 24 CFR 982.158, the Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements. HUD uses HUD-52681-B, Voucher for Payment of Annual Contributions and Operation Statement, via the Voucher Management System (VMS) to monitor the Authority?s Housing Choice Voucher program financial and operational performance. Condition During the audit we noted reporting issues in reporting the Authority?s restricted net position via the VMS. Activity related to the Mainstream grant were not included in the total. Cause The Authority does not have adequate levels of controls in place over reviewing reports. Repeat Finding Yes, 2021-002 Effect The Authority reported inaccurate information to HUD. Recommendation We recommend that management have more procedures in place to effectively reconcile, review, and submit required reports to HUD. Views of Responsible Official The Authority agrees with the finding.
Finding 2022-004
Finding 2022-004 ? Housing Voucher Cluster, CFDA No. 14.871 and 14.879 ? Inspections Criteria Pursuant to 24 CFR 982.158(d) and 982.404, the Authority must follow up on the correction of failed inspections within 24 hours for life threatening housing quality standard (HQS) deficiencies or 30 calendar days for all other HQS deficiencies. Condition During the audit we noted one failed inspection was not followed up prior to the 30 day requirement Cause The Authority?s controls over failed inspections were not followed. Repeat Finding No Effect The Authority could not determine if the HQS deficiency was corrected in a timely manner. Recommendation We recommend that management review their controls over inspections to ensure they are implemented. Views of Responsible Official The Authority agrees with the finding.