Finding 370187 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-02-22

Audit: 291732

Organization: Housing and Redevelopment Authority of Austin (MN)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: The HRA failed to submit the required form HUD-50058 for 1 out of 21 tenant files tested.
Impacted Requirements: Internal controls over annual submission of HUD-50058 are not being effectively maintained.
Recommended Follow-Up: HRA should assess and improve their procedures to ensure timely submission of required forms.

Finding Text

Criteria or Specific Requirement: The HRA is responsible for establishing and maintaining internal controls over submission of form HUD-50058 annually for each tenant. Condition: During report testing, it was noted that form HUD-50058 was not submitted as required. Questioned Costs: None Context: 1 of 21 tenant files tested did not have support that the HUD-50058 was submitted as required. Cause: Oversight by those preparing and submitting the form. Effect: The potential exists that the HRA is not reimbursed for the HAP payments made related to the tenant tested. Repeat Finding: No Recommendation: We recommend that the HRA continue to evaluate their procedures and controls in place over the submission of these forms. Views of Responsible Officials: Management agrees with the finding and will continue to evaluate its processes to determine if additional procedures need to be implemented.

Corrective Action Plan

Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance, Other Matters Recommendation: We recommend that the HRA continue to evaluate their procedures and controls in place over the submission of these forms. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The HRA will ensure that all policies and procedures are followed to ensure that the proper submission is completed for all tenants. Official Responsible for Ensuring CAP: Angela Maiden, Finance Director, is the official responsible for ensuring corrective action of the deficiency. Planned Completion Date for CAP: September 30, 2024 Plan to Monitor Completion of CAP: Taggert Medgaarden, Executive Director, will ensure that the above reviews have been completed through discussions with the Finance Director.

Other Findings in this Audit

946629 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$978,930
14.872	Public Housing Capital Fund	$452,077
14.850	Public and Indian Housing	$148,789