FAC Explorer

Audit 49171

FY End
2022-12-31
Total Expended
$8.43M
Findings
6
Programs
10
Organization: Olmsted County Housing and Redevelopment Authority (MN)
Year: 2022 Accepted: 2023-07-05
Auditor: Hawkins Ash CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44065 2022-001 Material Weakness - N
44066 2022-001 Material Weakness - N
44067 2022-001 Material Weakness - N
620507 2022-001 Material Weakness - N
620508 2022-001 Material Weakness - N
620509 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $716,204 Yes 1
14.181 Supportive Housing for Persons with Disabilities $647,200 - 0
14.879 Mainstream Vouchers $628,982 Yes 1
14.231 Emergency Solutions Grant Program $353,333 - 0
14.850 Public and Indian Housing $339,222 - 0
14.267 Continuum of Care Program $326,482 - 0
14.872 Public Housing Capital Fund $121,344 - 0
10.427 Rural Rental Assistance Payments $35,155 - 0
14.149 Rent Supplements_rental Housing for Lower Income Families $22,082 - 0
10.415 Rural Rental Housing Loans $20,290 - 0

Contacts

Name Title Type
GQWAYD787CC8 Stephanie Reese Auditee
5073287081 Monica Hauser Auditor
No contacts on file

Notes to SEFA

Title: Disclosure of Other Forms of Assistance Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limitedas to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Olmsted County Housing and Redevelopment Authority had noncash assistance in the form of interest subsidy in the amount of$20,290 from Rural Rental Housing loans during the year ending December 31, 2022.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limitedas to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Olmsted County Housing andRedevelopment Authority under programs of the federal government for the year ended December 31, 2022. The information in thisschedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in the presentation of, the financial statements.Because the schedule presents only a selected portion of the operations of Olmsted County Housing and Redevelopment Authority,it is not intended to and does not present the financial position, changes in net assets, or cash flows of Olmsted County Housing andRedevelopment Authority
Title: Reconciliation to Schedule of Intergovernmental Revenue Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limitedas to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal grant revenue per Schedule of Intergovernmental Revenue $ 7,068,539Per HUD include in SEFAOther public housing authorities, port in income 716,204Supportive housing for persons with disabilities, temporarily restricted capital advance 647,200Expenditures per Schedule of Expenditures of Federal Awards $ 8,431,943

Finding Details

Finding 2022-001
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements. Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: This is a new finding in 2022. Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management?s Response: Staff had not recognized the current housing software system was not pulling inspections correctly in the system. Back in 2021, the PHA began performing biennial inspections versus annually. Staff advised our software company of this change but a glitch in the system did not allow for all inspections to be pulled correctly. Staff are currently performing these missed inspections. Additionally, we are transitioning to an upgraded software system where the ?biennial? option will be set up in the system manually by both PHA staff and software system staff and tested during the transition. Moving forward we are abating payments to owners when the units do not pass property inspections in a timely manner. In addition, we have created a tracking system to track daily work tasks to ensure that all failed HQS inspections are followed up on, and abatements occur when necessary. This has been in action since February 2023.
Finding 2022-001
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements. Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: This is a new finding in 2022. Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management?s Response: Staff had not recognized the current housing software system was not pulling inspections correctly in the system. Back in 2021, the PHA began performing biennial inspections versus annually. Staff advised our software company of this change but a glitch in the system did not allow for all inspections to be pulled correctly. Staff are currently performing these missed inspections. Additionally, we are transitioning to an upgraded software system where the ?biennial? option will be set up in the system manually by both PHA staff and software system staff and tested during the transition. Moving forward we are abating payments to owners when the units do not pass property inspections in a timely manner. In addition, we have created a tracking system to track daily work tasks to ensure that all failed HQS inspections are followed up on, and abatements occur when necessary. This has been in action since February 2023.
Finding 2022-001
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements. Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: This is a new finding in 2022. Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management?s Response: Staff had not recognized the current housing software system was not pulling inspections correctly in the system. Back in 2021, the PHA began performing biennial inspections versus annually. Staff advised our software company of this change but a glitch in the system did not allow for all inspections to be pulled correctly. Staff are currently performing these missed inspections. Additionally, we are transitioning to an upgraded software system where the ?biennial? option will be set up in the system manually by both PHA staff and software system staff and tested during the transition. Moving forward we are abating payments to owners when the units do not pass property inspections in a timely manner. In addition, we have created a tracking system to track daily work tasks to ensure that all failed HQS inspections are followed up on, and abatements occur when necessary. This has been in action since February 2023.
Finding 2022-001
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements. Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: This is a new finding in 2022. Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management?s Response: Staff had not recognized the current housing software system was not pulling inspections correctly in the system. Back in 2021, the PHA began performing biennial inspections versus annually. Staff advised our software company of this change but a glitch in the system did not allow for all inspections to be pulled correctly. Staff are currently performing these missed inspections. Additionally, we are transitioning to an upgraded software system where the ?biennial? option will be set up in the system manually by both PHA staff and software system staff and tested during the transition. Moving forward we are abating payments to owners when the units do not pass property inspections in a timely manner. In addition, we have created a tracking system to track daily work tasks to ensure that all failed HQS inspections are followed up on, and abatements occur when necessary. This has been in action since February 2023.
Finding 2022-001
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements. Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: This is a new finding in 2022. Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management?s Response: Staff had not recognized the current housing software system was not pulling inspections correctly in the system. Back in 2021, the PHA began performing biennial inspections versus annually. Staff advised our software company of this change but a glitch in the system did not allow for all inspections to be pulled correctly. Staff are currently performing these missed inspections. Additionally, we are transitioning to an upgraded software system where the ?biennial? option will be set up in the system manually by both PHA staff and software system staff and tested during the transition. Moving forward we are abating payments to owners when the units do not pass property inspections in a timely manner. In addition, we have created a tracking system to track daily work tasks to ensure that all failed HQS inspections are followed up on, and abatements occur when necessary. This has been in action since February 2023.
Finding 2022-001
Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements. Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: This is a new finding in 2022. Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management?s Response: Staff had not recognized the current housing software system was not pulling inspections correctly in the system. Back in 2021, the PHA began performing biennial inspections versus annually. Staff advised our software company of this change but a glitch in the system did not allow for all inspections to be pulled correctly. Staff are currently performing these missed inspections. Additionally, we are transitioning to an upgraded software system where the ?biennial? option will be set up in the system manually by both PHA staff and software system staff and tested during the transition. Moving forward we are abating payments to owners when the units do not pass property inspections in a timely manner. In addition, we have created a tracking system to track daily work tasks to ensure that all failed HQS inspections are followed up on, and abatements occur when necessary. This has been in action since February 2023.