FAC Explorer

Finding 395978 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-05-06
Audit: 305602
Organization: Housing and Redevelopment Authority of Brainerd (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The HRA failed to conduct the required quality control re-inspections for Section 8 Housing Choice Vouchers.
  • Impacted Requirements: Only 5 out of 15 necessary re-inspections were completed, indicating a significant deficiency in internal controls.
  • Recommended Follow-up: Management should implement a plan to ensure timely completion of all required re-inspections to maintain compliance.

Finding Text

Federal Agency: Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Award Period: January 1, 2023 – December 31, 2023 Compliance Requirement Section: Special Provisions Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Criteria: The HRA is required to conduct quality control re-inspections and prepare a unit inspection report. Condition: It was noted that the HRA did not complete the required re-inspections. Context: During testing, it was noted that only 5 of the 15 required re-inspections were completed during the year. Cause: Oversight by management. Possible Effect: Potential that the HRA is not in compliance with the requirements on the timeliness of properties meeting re-inspections.

Corrective Action Plan

Federal Agency: Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Award Period: January 1, 2023 – December 31, 2023 Compliance Requirement Section: Special Provisions Type of Finding: Significant Deficiency in Internal Control Over Compliance Recommendation: We recommend that the HRA keep a list of properties that have inspections and complete the required re-inspections. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will ensure the necessary re-inspections are completed.

Categories

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 972420 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.21M
14.872 Public Housing Capital Fund $509,973
14.850 Public and Indian Housing $377,315
14.896 Family Self-Sufficiency Program $112,270
14.870 Resident Opportunity and Supportive Services - Service Coordinators $82,093
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2,283