FAC Explorer

Finding 524706 (2024-002)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2024
Accepted
2025-02-27
Audit: 344136
Organization: Housing and Redevelopment Authority of Austin (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The HRA did not spend drawn funds within the required three business days.
  • Impacted Requirements: Compliance with federal guidelines for timely fund usage under the Capital Fund Program.
  • Recommended Follow-Up: HRA should enhance procedures and controls for managing fund drawdowns to prevent future issues.

Finding Text

Cash Management Federal Agency: Department of Housing and Urban Development Federal Program Name: Capital Fund Program Assistance Listing Number: 14.872 Federal Award Identification Number and Year: MN46P085501-19, MN46P085501-21 – FY2024 Award Period: October 1, 2023 – September 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance, Other Matters Criteria or Specific Requirement: The HRA is required to spend draw down of funds within three business days of receiving the funds. Condition: During cash management testing, it was noted that the HRA drew down funds and did not spend them within the three day requirement. Questioned Costs: $112,280 Context: During testing, it was noted that the prior year draw down was not properly spent within the required timeframe. Cause: Oversight by management. Effect: The potential exists that the HRA loses funding. Repeat Finding: No Recommendation: We recommend that the HRA continue to evaluate their procedures and controls in place over the draw down of funds. Views of Responsible Officials: Management agrees with the finding and will continue to evaluate its processes over draw requests.

Corrective Action Plan

Cash Management Federal Agency: Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: October 1, 2023 – September 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance Recommendation: We recommend that the HRA continue to evaluate their procedures and controls in place over the draw down of funds. Management’s Response: Management agrees with the finding and will continue to monitor the draws to ensure they are spent within the required timeframe. 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 draws of funds are spent within the required timeframe. 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, 2025 Plan to Monitor Completion of CAP: Taggert Medgaarden, Executive Director, will ensure that the draw downs are properly managed through discussions with the Finance Director.

Categories

Questioned Costs Cash Management Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 524707 2024-002
    Significant Deficiency
  • 524708 2024-002
    Significant Deficiency
  • 1101148 2024-002
    Significant Deficiency
  • 1101149 2024-002
    Significant Deficiency
  • 1101150 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $891,086
14.850 Public Housing Operating Fund $180,087
14.872 Public Housing Capital Fund $17,401