Finding 606360 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-05-15

AI Summary

  • Core Issue: The HRA reopened its waitlist without publishing the required public notice in the St. Cloud Times, violating its own administrative plan.
  • Impacted Requirements: The failure to adhere to the policy increases the risk of noncompliance and potential oversight in future operations.
  • Recommended Follow-Up: Ensure strict adherence to the administrative plan and verify that all required notices are published in the future to avoid similar issues.

Finding Text

2022-001 Lack of Adherence to Policies in Administrative Plan - Reopening the Waitlist - Assistance Listing No. 14.871 Criteria: The HRA's administrative plan states that "if the waiting list has been closed, it cannot be reopened until the HRA publishes a notice in local newspapers of general circulation, minority media, and other suitable media outlets. The notice must comply with HUD fair housing requirements and must specify who may apply, where and when applications will be received. HRA Policy The HRA will announce the reopening of the waiting list at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice. The HRA will give public notice by publishing the relevant information in suitable media outlets including, but not limited to: St. Cloud Times." Condition: The HRA opened its waitlist in 2022 and did not publish public notice of the opening in the St. Cloud Times. Cause: HRA staff did not follow the administrative plan as outlined in the criteria. We understand that the infrequency in which the HRA opens its waitlist may be a contributing factor to the lack of publication. Effect: The auditor is not in a position to determine the effect of the HRA not following its established policies. However, failure to follow policies increases the risk that noncompliance will occur and not be detected in a timely manner. Recommendation: We recommend the HRA takes steps to ensure that the policies in the administrative plan are followed. Response: The HRA intended to publish the opening of the Housing Choice Voucher waitlist in the St. Cloud Times. Due to staff error, it was not published. While we errored in not publishing notice in a local newspaper, the waitlist opening was widely advertised throughout our jurisdiction via the Central MN CoC, Adult Mental Health Initiative, FHPAP advisory committee, HousingLink, NAACP, St. Cloud Area Human Services Council, Hands Across the World, United Way 211, Emergency Food and Shelter Program Committee, SCSU Multicultural Resource Center, HRA website, HRA office signage, and at all HRA properties. The HRA has implemented additional internal controls to ensure the required publication is not missed in the future.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 29918 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $7.86M
14.872 Public Housing Capital Fund $729,121
14.850 Public and Indian Housing $663,179
14.182 Section 8 New Construction and Substantial Rehabilitation $611,992
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $378,504
14.267 Continuum of Care Program $364,600
14.218 Community Development Block Grants/entitlement Grants $253,478
14.879 Mainstream Vouchers $251,634