FAC Explorer

Finding 1227448 (2025-003)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-08-20
Audit: 409486
Organization: Housing and Redevelopment Authority of the City of Worthington (MN)
Auditor: ABDO LLP

AI Summary

  • Core Issue: Several disbursement checks had only one authorized signature, violating internal control standards.
  • Impacted Requirements: Lack of proper controls over disbursements raises compliance concerns for the Housing Choice Voucher Program.
  • Recommended Follow-Up: Ensure that a Board member signs each check alongside the Executive Director to strengthen controls.

Finding Text

Signatures on Checks U.S Department of Housing and Urban Development Section 8 Housing Choice Voucher Program 14.871 Condition: During our audit, we noted several disbursement checks that contained only one authorized signature. The population tested included both transactions selected as part of the single audit compliance testing for the Housing Choice Voucher Program (ALN 14.871) and transactions selected as part of general disbursement testing. Criteria: Internal controls should be in place to provide reasonable assurance over disbursements. Cause: The Executive Director was the only person signing checks for the majority of the year. Effect: The HRA does not appear to have appropriate controls over the disbursement process. Recommendation: We recommend that a member of the Board sign each check in addition to the Executive Director’s signature. Management response: This has been brought to the HRA’s attention and appropriate action has been taken. The HRA has implemented multiple signatures on checks since May of 2025.

Corrective Action Plan

Signatures on Checks CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The HRA will make sure that all checks have the proper signatures that are required Official Responsible for Ensuring CAP: Tanner Rogers, Executive Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: The planned completion date is December 31, 2026. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan and believes the Executive Director will remedy this finding.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1227442 2025-001
    Material Weakness Repeat
  • 1227443 2025-002
    Material Weakness Repeat
  • 1227444 2025-003
    Material Weakness Repeat
  • 1227445 2025-004
    Material Weakness Repeat
  • 1227446 2025-001
    Material Weakness Repeat
  • 1227447 2025-002
    Material Weakness Repeat
  • 1227449 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 PUBLIC HOUSING CAPITAL FUND $372,634
14.850 PUBLIC HOUSING OPERATING FUND $200,222
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $57,825