FAC Explorer

Finding 20393 (2022-002)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-09-06
Audit: 19208
Organization: Housing and Redevelopment Authority of the City of Worthington (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: The HRA did not obtain Board approval for several Section 8 Housing Voucher and Public and Indian claims.
  • Impacted Requirements: This violates Minnesota Statute ? 412.271, subd. 1, which mandates Board approval for all claims.
  • Recommended Follow-Up: Ensure all claims are included in monthly Board meetings for approval to maintain compliance and control over federal spending.

Finding Text

Condition: During the audit we noted the HRA did not get Board approval for several Section 8 Housing Voucher and Public and Indian claims. Criteria: Minnesota Statute ? 412.271, subd. 1 directs all claims be audited and allowed by the HRA Board. Meaning all claims paid by the HRA are required to be approved by the Board at the HRA?s monthly meetings. The HRA also relies on Board approval of expenditures as a key control over federal spending. We noted instances throughout the year where there were gaps in the check sequences that the HRA was approving, thereby not approving all claims. Cause: Section 8 Housing Voucher and Public and Indian claims were not included in monthly Board meetings for approval. Effect: The HRA is not in compliance with Minnesota legal compliance and there were not proper internal controls over federal expenditures. Recommendation: We recommend the HRA include all claims paid by the HRA in monthly Board meetings for approval. Management Response: The HRA?s management will include all claims paid by the HRA in monthly Board meetings.

Corrective Action Plan

Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The HRA will monitor claims approvals going forward. Official Responsible for Ensuring CAP: Randy Thompson, Executive Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: The planned completion date is December 31, 2023. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan and believes the Executive Director will remedy this finding. Randy Thompson Executive Director

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.07M
14.850 Public and Indian Housing $226,431
14.872 Public Housing Capital Fund $127,537
14.871 Section 8 Emergency Housing Choice Vouchers $41,901