Minnesota Office of the Legislative Auditor
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Report Summary
Minnesota Housing Finance Agency

Financial Audit For the Period July 1, 1995,
through June 30, 1997

 

Public Release Date: July 24, 1998 No. 98-41

Background

In 1971, the state Legislature created the Minnesota Housing Finance Agency (the agency) to increase the ability of low and moderate income Minnesotans to obtain safe, decent housing. The Minnesota Housing Finance Agency provides funds to assist in the purchase, rehabilitation, and rental of housing by qualifying individuals. Ms. Katherine Hadley has served as commissioner since July 1, 1994.Minnesota Housing Finance Agency

Audit Scope and Objectives

Our audit scope included aspects of the Affordable Rental Investment Fund expenditures, payroll, and other administrative expenditures for the period July 1, 1995, through June 30, 1997. Our audit objectives included reviewing internal controls over financial activities of the agency and determining compliance with laws and regulations. This was not a complete audit of all Minnesota Housing Finance Agency programs.

Conclusions

The Minnesota Housing Finance Agency properly authorized and accurately reported Affordable Rental Investment Fund expenditures in the accounting records. However, the agency had not performed inspections of some completed projects funded by Affordable Rental Investment Fund deferred loans.

Payroll and other administrative expenditures were authorized, made for a proper purpose, and accurately recorded in the state's accounting system. However, the agency had an inadequate separation of duties over the payroll process. For the items tested, the Minnesota Housing Finance Agency processed its payroll and other administrative expenditures in accordance with applicable legal provisions.

In response to the audit report, the Minnesota Housing Finance Agency agreed with the audit report's findings and recommendations and has taken action to resolve the issues.

 

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155