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Housing & Redevelopment Authority - HRA-Packet-09-03-2025 Supporting Documents - 09/03/2025
OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN September 3, 2025 | 12:45 pm Commissioners may participate in the meeting by interactive technology. 1.Call Meeting to Order and Roll Call – Chairperson 2. Oath of Office – HRA Commissioner Megan Myers 3. Approval of Agenda 4. Consent Agenda A. Regular Board Meeting Minutes, August 6, 2025 B. Housing Choice Voucher Rental Assistance Program for July 2025 C. Community Housing Investment Programs for July 2025 D. Public Housing and Senior Housing for July 2025 E. Check Report and Financial Reports for July 2025 5. New Business A. Motion to Accept Audited Financial Statements for the Year Ended December 31, 2024 B. Resolution No. 315 Approving the Acceptance of the Grant Award for the Bring It Home Rental Assistance Program C. Resolution No. 316 Adoption of Accounting Policy and Procedure 6. Old Business 7. Discussion 8. Executive Director Report 9. General Discussion – Topics by Commissioners 10. Adjourn 1/73 2/73 The Otter Tail County HRA Board of Commissioners Met for a regular meeting on August 6, 2025, 2025 at 12:45pm At the Otter Tail County Government Services Center 515 W Fir Ave, Fergus Falls, MN Board Members Present: Wayne Johnson, Chairperson Jeff Ackerson Kurt Mortenson Betty Murphy Leland Rogness, Vice Chairperson Others Present: Amy Baldwin, OTC HRA Executive Director Tanya Westra, OTC HRA Housing Program Supervisor Julie Bakken, OTC HRA Accountant Paula Grunewald, OTC HRA Administrative Assistant Aisling Cox, CDA Intern 1. CALL TO ORDER Chairperson Johnson called the meeting to order at 12:45pm. 2. APPROVAL OF AGENDA Motion made by Betty Murphy, second by Kurt Mortenson to approve the August 5, 2025 Agenda with no changes noted. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Leland Rogness, second by Kurt Mortenson to approve the Consent Agenda. Motion passed unanimously. 4. NEW BUSINESS A. Resolution No. 311 Approving Special Benefit Levy for Taxes Payable 2026 Amy Baldwin, HRA Executive Director provided a recommendation to request the same Special Benefit Levy amount as the 2025 request of $1,610,431. This will help continue with the strategic initiatives of “Creating New Homes” and “Keeping People in Their Homes”. A full agency budget, with Federal programs, will be presented later in the year. She also stated the request would be presented to the County Board jointly with CDA & HRA. Motion made by Leland Rogness second by Betty Murphy to approve Special Benefit Levy for Taxes Payable in 2026 in the amount of $1,610,431. Motion passed unanimously. B. Call for Public Hearing related to Annual Agency Plan, Administrative Plan and Admissions & Continued Occupancy Plan Changes and the 2026 Capital Fund Plan Amy Baldwin, HRA Executive Director stated there was a need to call for a Public Hearing to be held on October 1, 2025 at the HRA Board of Commissioners regular meeting for the 2026 Annual Agency Plan, Administrative Plan Changes, effective January 1, 2026, Admissions & Continue Occupancy Plan Changes, 3/73 OTTERTAIL COUNTY -MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 218-998-8730 @ OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER @ ottertailcounty.gov LIVE YOUR best life HERE. _____ ..---------7 Pg. 2 effective January 1, 2026, and the 2026 Public Housing Capital Fund Plan. The Public Hearing is requested to be scheduled for 12:45pm on October 1, 2025 with a noticed published in the Daily Journal 45 days prior to allow for the 45 day comment period. Motion made by Kurt Mortenson, second by Jeff Ackerson to call for a Public Hearing on October 1 at 12:45pm. Motion passed unanimously. C. Resolution No. 312 Adopting Amendments to Community Housing Improvement Program Policies and Procedures. Amy Baldwin, HRA Executive Director stated the request to move the Down Payment Assistance, Emergency Home Repair, Owner-Occupied Housing Leverage Program, Affordable Rental Unit Construction Program and Rental Rehabilitation Program under the Housing Trust Fund. Tanya Westra, Housing Program Supervisor reviewed the proposed policy changes: Down Payment Assistance General language was clarified and cleaned up, income limit increase to 115% of State Area Median Income, policy addition to include who is required to complete the application and whose income will be counted, updated language of where Special Benefit Levy funds can be used, completed application and documents due at least 30 days before closing and expanded language on home inspection guidelines. Emergency Home Repair Program and Owner-Occupied Housing Leverage Program General language was clarified and updated language of where Special Benefit Levy funds can be used. Affordable Rental Unit Construction Program and Rental Rehabilitation Loan General language was clarified and amended, increase the rent limit from 60 to 70% of the published rent limit, refined language to describe the rent limit table, updated language of where Special Benefit Levy funds can be used, and updated list of documents required at application. Motion made by Betty Murphy, second by Jeff Ackerson to approve the recommended changes presented. Motion passed unanimously. D. Resolution No. 313 Approving Community Housing Investment Programs to be Administered through the Otter Tail County Housing Trust Fund. Amy Baldwin, HRA Executive Director stated that HRA is the administrator of the Housing Trust Fund that was established in 2021. There are $542,385 in funds that have been preserved in anticipation of MN Housing’s Trust Fund Matching Grant. Motion made by Kurt Mortenson second by Betty Murphy to approve the Community Housing Improvement Programs be administered through the Otter Tail County Housing Trust Fund. Motion passed unanimously. E. Resolution No. 314 Transfer of Funds to Otter Tail County Housing Trust Fund Amy Baldwin, HRA Executive Director stated that there is $313,304.54 remaining in a total balance from the Down Payment Assistance, Emergency Home Repair Program, Owner-Occupied Leverage Program (ROHL) Affordable Rental Unit Construction Program and Rental Rehabilitation Loan. There is also a balance in the Rental Rehabilitation Checking Account of $237,710.48, with monthly loan payments due of $818.36. Every year there will be a transfer on funds until outstanding loans are repaid. Motion made by Leland Rogness, second by Jeff Ackerson to approve transferring the balance of $313,304.54. Motion passed unanimously. 5. OLD BUSINESS - none 6. DISCUSSION 4/73 Pg. 3 Amy Baldwin, HRA Executive Director discussed 2026 Agency Goals including: Maintaining a standard performer status and working towards the high performer status for 2026 . Submit application to MN DEED on behalf of the City of New York Mills for the Small Cities Development Program Grant. Construct 6 units of affordable senior housing in New York Mills if funding is secured. Construct and sell 7 homes through the MN Housing Impact Fund, if funding awarded. Research creation of a program to be used to acquire, rehabilitate, demolish and identify property to facilitate construction of new housing. Tanya Westra, Housing Program Supervisor discussed the Housing Choice Voucher Administrative Plan and Public Housing Admissions & Continued Occupancy Plan including: Interim reexaminations – change from % based to a dollar threshold. Mandatory changes from HUD. 2026-2030 Public Housing Capital Fund Five Year Action Plan Addition of new capital activity costing $50,000 and above will require a Public Hearing Single Family 4BR – decks have been updated, 3BRs are next and the duplexes will be last. Plans are to continue to replace light fixtures. 7. EXECUTIVE DIRECTOR REPORT A. Tax Forfeited Property Amy Baldwin, HRA Executive Director has been looking at leverage with the help of Barbara Dacy for one-off projects. They have looked at Crow Wing with their response to blight and reinvesting. She noted the assistance of non-profit developers is very encouraging. She recommended setting up a draft policy with the County Board. Board members stated this would be create consistency, there’s a known value, and policies created should be specific to Non-Project and Project. A review will be done - watch for future info. 8. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS Betty Murphy’s 5-year term is up at the end of the month. She was thanked for her service and presented with a plaque. Otter Tail County Commissioner Bob Laman will recommend an appointment from his district at the next County Board meeting. 9. ADJOURNMENT At 2:50pm a motion was unanimously carried to adjourn the meeting. ________________________________________________________ ___________________ Secretary/Clerk Date 5/73 7/31/2025 8/1/2025 Difference 39,052.06$ 42,223.06$ $3,171.00 83 83 0 35,539.00$ 37,826.00$ *HAP Adjustment Port out adjustment 542.00$ 1,426.00$ *Utility Adjustment *Portability Tranactions (Out)2,819.00$ 2,819.00$ 61.00$ 61.00$ *Portablilty Admin Fee (Paid)91.06$ 91.06$ 7/31 8/1 New Admissions 0 End Participation 0 Shop Mode/ARS 0 Ports-Out Paid 2 2 Ports Out Pending 0 0 Ports In Pending 1 2 7/31/2025 Waiting List/To Date 94 Applications in Progress 0 Vouchers Issued 1 Vouchers "On the Strreet"0 ELI%0%YTD Monthly Trend Report*Units Available Units Leased Leasing %Budget %Per Unit $ February 2025 144 94 65.6% 88.3% 500.37$ March 2025 144 92 65.3% 86.2% 491.23$ April 2025 144 91 64.8% 85.0% 493.06$ May 2025 144 88 64.6% 83.5% 493.17$ June 2025 144 86 64.4% 83.2% 513.82$ July 2025 144 85 62.7% 81.3% 480.66$ *Leasing % and Budget % based on cumulative activity during calendar year Per Unit $ is rolling three month average *Portability Utility Reimbursement *Hold Landlord Transaction OTC Section 8 Housing Choice Voucher Rental Assistance Program Summary of Actions July 31, 2025 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) *HAP & Utility Reimbursement Payments 6/73 &, OTTE:R 'TAIL ~, COUNTY-MINNESOTA 218-998-8730 ® HOUSINIG AND REDEVIELOPMENT AUTHO,RITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Go,v,etn mein,t Services Center 500 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov COMMUNITY HOUSING INVESTMENT PROGRAMS (CHIP) BOARD REPORT July 2025 Program Applications Approved Applications Denied Inspections Conducted Proceed to Work Issued Projects Complete Goal Program End Date Emergency Home Repair Program (EHRP) 1 2 1 1 1 On-Going Down Payment Assistance (DPA) 4 4 On-Going SCDP: Reuse On-Going Rent Rehab – RR 1 On-Going Affordable Rental Unit Construction - ARUC On-Going PELICAN RAPIDS 09/30/2027 SCDP: Commercial 4 3 10 SCDP: Homeowner 9 1 7 1 1 17 Residential Owner-Occupied Leverage (ROHL) 1 1 7/73 218-998-8730 @ HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (!) EOU/\L HOUSING OPPORTUNITY @ ottertailcounty.gov AFFORDABLE SENIOR HOUSING BOARD REPORT July 2025 Rents Payable $3,300 Rents Collected $3,300 Late Fees Charged Late Fees Collected $0 WAITING LIST as of 08/20/2025 COMMUNITY 1 Bedroom 2 Bedroom Dalton 1 0 VACANCIES UNIT VACATED LEASE SIGNED $0 *4 units rented as of 8/1/2025 8/73 OTTERTAIL COUNTY -MINNESOTA 218-998-8730 ® HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (!) EOUl\l. HOUSING OPPORTUNITY @ ottertailcounty.gov PUBLIC HOUSING BOARD REPORT July 2025 Rents Payable $5,087 Rents Collected $4,269 Total Negative Rents $ 286 Negative Rents Paid $ 0 Late Fees Charged $ 44 Late Fees Collected $ 0 Number of Units Paying Flat/Ceiling Rent 1 0Fiscal Year ELI WAITING LIST as of 08/20/2025 Community 2 Bedroom 3 Bedroom 4 Bedroom Pelican Rapids 11 10 N/A Underwood 5 3 3 Henning 3 2 2 New York Mills 5 5 2 VACANCIES UNIT VACATED LEASE SIGNED . working on one applicant, sentletters to all other applicants onwaiting list 7/21/20253-BR Single Family - Henning 9/73 OTTERTAIL COUNTY -MINNESOTA 218-998-8730 ® HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (!) EOUl\l HOUSING OPPORTUNITY @ ottertailcounty.gov Doc Num Voided Type 154 No DD 155 No DD 156 No DD 157 No DD 158 No DD 1620 No CHK 1621 No CHK 1622 No CHK 1623 No CHK 1624 No CHK 1625 No CHK 1626 No CHK End of Report Total:12 $106,611.21 Vendor Accounting - 12 $106,611.21 Vendor Accounting Total 12 $106,611.21 Transaction Type Summary Transaction Type Count Amount Check (CHK)7 $106,143.81 Total:12 $106,611.21 Count Amount Direct Deposit (DD)5 $467.40 Project Summary Program - Project Payments Deposits General Revolving (GR) - $106,611.21 $0.00 Total:$106,611.21 $0.00 Document Type Summary Document Type 07/25/2025 DPA 2025-05 No $11,580.00 Cleared: 11 $95,031.21 Uncleared: 1 $11,580.00 Total Payments: 12 $106,611.21 07/11/2025 PR2025-01 Yes $2,375.00 07/25/2025 O&E Report Pelican Rapids Yes $190.00 07/11/2025 2024 Work Comp Yes $5,707.36 07/11/2025 Payroll, Postage, Credit Card, Acct Serv June 2025 Yes $53,366.67 07/11/2025 Renew 6/17/25 - 6/16/26 Prof Liab Policy Yes $32,734.78 07/11/2025 O&E Report - Pelican Rapids Yes $190.00 07/11/2025 Per Diem/Mileage July 25 Yes $77.80 07/11/2025 Per Diem/Mileage July 25 Yes $103.70 07/11/2025 Per Diem/Mileage July 25 Yes $82.70 07/11/2025 Per Diem/MIleage July 25 Yes $93.20 Payment Date Document Description Cleared Amount 07/11/2025 Per Diem/Mileage July 25 Yes $110.00 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register General Revolving (GR) Posted Payments www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 9:56:29 AM Printed by: Julie Bakken 10/73 58% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3610 Interest Income 3703/5353/3741/0054 301.85 4,870.23 8,000.00 (3,129.77)61% 3690 Other Revenue MISC 20,205.00 20,205.00 3690.01 SCDP Administration (DEED) - All Communities 7,049.00 61,200.00 (54,151.00)12% 3690.02 SCDP City/Grant Funds - All Communities 408,598.00 (408,598.00)0% 3691 Levy Revenue 904,208.40 1,610,431.00 (706,222.60)56% 3693.02 CHIP Res Owner Occup Housing Lev (ROHL) Repayment 4,572.40 4,572.40 3693.03 CHIP FFHRA Rehab Repayments 4,091.00 4,091.00 4,091.00 3693.05 CHIP Rental Rehab Revolving Loan Payments 580.00 5,804.60 14,704.00 (8,899.40)39% TOTAL INCOME 4,972.85 950,800.63 2,102,933.00 (1,152,132.37) EXPENSES 4130 Legal 382.50 20,000.00 19,617.50 2% 4140 Staff Training 169.00 6,000.00 5,831.00 3% 4150 Travel 500.00 500.00 0% 4170 Accounting 5,000.00 30,000.00 60,000.00 30,000.00 50% 4171 Audit 16,500.00 22,000.00 5,500.00 75% 4190 Other Administrative Expenses 15,902.72 (15,902.72) 4190.01 Manuals, Subscriptions 30.00 1,000.00 970.00 3% 4190.02 Office Supplies 44.84 456.63 1,700.00 1,243.37 27% 4190.03 Postage 193.22 1,411.79 2,500.00 1,088.21 56% 4190.05 Dues 954.34 1,500.00 545.66 64% 4190.06 Advertising 2,000.00 2,000.00 0% 4190.08 Consulting Fees 11.55 3,188.15 50,000.00 46,811.85 6% 4190.2 Management Fees-OTC Admin 46,342.10 250,033.84 620,000.00 369,966.16 40% 4210 Board Member Payments 467.40 2,789.60 4,100.00 1,310.40 68% 4420 Maintenance - Materials 800.58 (800.58) 4430.1 Misc Contracts - Software 330.00 7,548.00 7,700.00 152.00 98% 4510 Insurance 17,757.43 33,316.78 50,000.00 16,683.22 67% 4570 Housing Choice Voucher Operating Support 15.47 4,104.73 30,000.00 25,895.27 14% 4580 Public Housing Operating Support 7,136.85 17,557.40 20,000.00 2,442.60 88% 4590.01 SCDP O & E Reports 380.00 950.00 1,235.00 285.00 77% 4590.02 SCDP Lead Based Paint Testing 8,000.00 8,000.00 0% 4590.03 SCDP Construction (DEED)2,375.00 9,424.00 400,000.00 390,576.00 2% 4590.04 SCDP Recording Fees 92.00 598.00 506.00 15% 4592.01 HOP Demolition/Site Clearance 45,000.00 45,000.00 0% 4593.02 CAP Property Acquisition 25,000.00 25,000.00 0% 4593.03 CAP Consulting Fees 10,000.00 10,000.00 0% 4593.04 CAP Architect/Engineering 5,000.00 5,000.00 0% 4593.05 CAP Legal Fees 5,000.00 5,000.00 0% 4593.06 CAP Affordable Senior Housing Program Leverage 125,000.00 125,000.00 0% 4594 CHIP Down Payment Assistance 11,580.00 66,000.00 75,000.00 9,000.00 88% 4595.01 CHIP Emergency Housing Repair Program (EHRP)1,751.46 100,000.00 98,248.54 2% 4595.02 CHIP Res Owner Occupied Housing Leverage (ROHL)138.00 56,000.00 55,862.00 0% 4595.04 CHIP Affordable Rental Unit Constr (ARUC) Program 46.00 100,000.00 99,954.00 0% 4595.05 CHIP Rental Rehabilitation Loan 95.00 50,000.00 49,905.00 0% 4596.50 CWIP Pre-Development Expense 14,680.00 (14,680.00) 4597.01 County Assistance Repay Principal (BUDGET USE ONLY 34,633.00 34,633.00 0% 4597.02 County Assistance Repay Interest-N Fields Dalton (1,993.86)15,821.00 17,814.86 -13% TOTAL EXPENSES 91,633.86 476,328.66 1,955,287.00 1,478,958.34 24% SURPLUS (86,661.01)474,471.97 147,646.00 326,825.97 321% Otter Tail County Housing Redevelopment Authority Operating Statement Seven Months Ending 07/31/2025 Program: General Revolving (GR) Project: Consolidated Percent of Year www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 8:56:45 AM Printed by: Julie Bakken 11/73 Period Amount Balance ASSETS 1111 Cash (102,238.51)2,715,519.57 1111.1 Certificates of Deposit 154,085.56 1111.4 Committed for Housing Trust Fund 542,835.00 1113 Cash Rental Rehab 600.15 237,600.48 1130.1 Loan Receivable-Rental Rehab 44,478.49 1130.2 Loan Receivable-Down Payment Assistance 124,920.00 1130.3 Loan Receivable-Tax Levy Rehab Provision 195,983.97 1130.4 Loan Receivable-Homeowner Rehab 25,577.19 1130.9 Loan Allowance (221,561.16) 1400.6 Land 26,400.00 TOTAL ASSETS (101,638.36)3,845,839.10 LIABILITIES AND SURPLUS LIABILITIES 2130.1 OTC Long-Term Loan 791,045.71 2250 Prepaid Expenses (14,977.35)(14,977.35) TOTAL LIABILITIES (14,977.35)776,068.36 SURPLUS 2700 Income/Expense Clearing Account (1,096,378.03) 2700 Income/Expense Clearing Account (Current Year) (12,686.14) 2700 Income/Expense Clearing Account (Unclosed 2024) 1,456,410.28 2806 Unrestricted Net Position 3,686,894.19 2806 Unrestricted Net Position (Current Year) (86,661.01)487,158.11 2806 Unrestricted Net Position (Unclosed 2024) (1,451,627.67) TOTAL SURPLUS (86,661.01)3,069,770.74 TOTAL LIABILITIES AND SURPLUS (101,638.36)3,845,839.10 Otter Tail County Housing Redevelopment Authority Balance Sheet July 2025 Program: General Revolving (GR) Project: Consolidated www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 8:56:44 AM Printed by: Julie Bakken 12/73 Doc Num Voided Type No ADJ 1511 No DD 1512 No DD 1513 No DD 1514 No DD 1515 No DD 1516 No DD 1517 No DD 1518 No DD 1519 No DD 1520 No DD 1521 No DD 1522 No DD 1523 No DD 1524 No DD 1525 No DD 1526 No DD 1527 No DD 1528 No DD 1529 No DD 1530 No DD 1531 No DD 1532 No DD 1533 No DD 1534 No DD 1535 No DD 1536 No DD 1537 No DD 1538 No DD 1539 No DD 1540 No DD 1541 No DD 1542 No DD 1543 No DD 1544 No DD 1545 No DD 1546 No DD 1547 No DD 2142 No ADJ 6703 No CHK 6704 No CHK 6705 No CHK 6706 No CHK 6707 No CHK 6708 No CHK 6709 No CHK 6710 No CHK 6711 No CHK 6712 No CHK 6713 No CHK07/01/2025 HAP Util Payment Jul 25 Yes $15.00 07/01/2025 HAP Payment Jul 25 Yes $2,406.00 07/01/2025 HAP Util Payment Jul 25 Yes $134.00 07/01/2025 HAP Payment Jul 25 Yes $700.00 07/01/2025 HAP Payment Jul 25 Yes $347.00 07/01/2025 HAP Payment Jul 25 Yes $508.00 07/01/2025 HAP Payment Jul 25 Yes $322.00 07/01/2025 HAP Payment Jul 25 Yes $217.00 07/01/2025 HAP Payment Jul 25 Yes $801.00 07/01/2025 Port Out Payment Jul 25 Yes $1,596.00 07/01/2025 HAP Payment Jul 25 Yes $313.00 07/01/2025 HAP Payment Jul 25 Yes $542.00 07/07/2025 June 2025 returned HAP Yes ($640.00) 07/01/2025 HAP Payment Jul 25 Yes $2,147.00 07/01/2025 HAP Payment Jul 25 Yes $325.00 07/01/2025 HAP Payment Jul 25 Yes $887.00 07/01/2025 HAP Payment Jul 25 Yes $309.00 07/01/2025 HAP Payment Jul 25 Yes $457.00 07/01/2025 HAP Payment Jul 25 Yes $300.00 07/01/2025 HAP Payment Jul 25 Yes $345.00 07/01/2025 HAP Payment Jul 25 Yes $735.00 07/01/2025 HAP Payment Jul 25 Yes $269.00 07/01/2025 HAP Payment Jul 25 Yes $499.00 07/01/2025 HAP Payment Jul 25 Yes $672.00 07/01/2025 HAP Payment Jul 25 Yes $396.00 07/01/2025 HAP Payment Jul 25 Yes $342.00 07/01/2025 HAP Payment Jul 25 Yes $784.00 07/01/2025 HAP Payment Jul 25 Yes $2,436.00 07/01/2025 HAP Payment Jul 25 Yes $1,417.00 07/01/2025 HAP Payment Jul 25 Yes $650.00 07/01/2025 HAP Payment Jul 25 Yes $405.00 07/01/2025 HAP Payment Jul 25 Yes $5,148.00 07/01/2025 HAP Payment Jul 25 Yes $879.00 07/01/2025 HAP Payment Jul 25 Yes $1,469.00 07/01/2025 HAP Payment Jul 25 Yes $589.00 07/01/2025 HAP Payment Jul 25 Yes $533.00 07/01/2025 HAP Payment Jul 25 Yes $177.00 07/01/2025 HAP Payment Jul 25 Yes $441.00 07/01/2025 HAP Payment Jul 25 Yes $567.00 07/01/2025 HAP Payment Jul 25 Yes $5,120.00 07/01/2025 HAP Payment Jul 25 Yes $465.00 07/01/2025 HAP Payment Jul 25 Yes $365.00 07/01/2025 HAP Payment Jul 25 Yes $602.00 07/01/2025 HAP Payment Jul 25 Yes $498.00 07/01/2025 HAP Payment Jul 25 Yes $400.00 07/01/2025 HAP Payment Jul 25 Yes $386.00 07/01/2025 HAP Payment Jul 25 Yes $579.00 07/01/2025 HAP Payment Jul 25 Yes $531.00 07/01/2025 HAP Payment Jul 25 Yes $551.00 Payment Date Document Description Cleared Amount 07/18/2025 July HAP returned, client moved out Yes ($980.00) Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers Posted Payments www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 2 8/13/2025 10:00:13 AM Printed by: Julie Bakken 13/73 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers 6714 No CHK 6715 No CHK 6716 No CHK 6717 No CHK 6718 No CHK 6719 No CHK 6720 No CHK 6721 No CHK 6722 No CHK 6723 No CHK 6724 No CHK 6725 No CHK End of Report Total:62 $51,481.06 Vendor Accounting - 3 $8,763.00 Vendor Accounting Total 3 $8,763.00 HAP Accounting Total 56 $38,151.00 HAP Accounting - Adj to 2 ($1,620.00) HAP Accounting - 54 $39,771.00 Portability/Subsidy Out 3 $4,567.06 Transaction Type Summary Transaction Type Count Amount Port/Sub Out - Payment 3 $4,567.06 Total:62 $51,481.06 Direct Deposit (DD)37 $33,217.00 Check (CHK)23 $19,884.06 Count Amount HAP Adjustment (ADJ)2 ($1,620.00) Project Summary Program - Project Payments Deposits Housing Choice $51,481.06 $0.00 Total:$51,481.06 $0.00 Document Type Summary Document Type 07/25/2025 Remote Admin Plan Update (offline) & Offsite Admin No $1,050.00 Cleared: 59 $50,357.16 Uncleared: 3 $1,123.90 Total Payments: 62 $51,481.06 07/11/2025 Payroll June 2025 Yes $7,673.10 07/25/2025 07-11-25 Mileage Reimb No $39.90 07/01/2025 Port Out Payment Jul 25 Yes $1,147.52 07/01/2025 Port Out Payment Jul 25 Yes $1,823.54 07/01/2025 HAP Util Payment Jul 25 Yes $133.00 07/01/2025 HAP Util Payment Jul 25 No $34.00 07/01/2025 HAP Util Payment Jul 25 Yes $37.00 07/01/2025 HAP Util Payment Jul 25 Yes $147.00 07/01/2025 HAP Util Payment Jul 25 Yes $58.00 07/01/2025 HAP Util Payment Jul 25 Yes $212.00 07/01/2025 HAP Util Payment Jul 25 Yes $170.00 www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 2 of 2 8/13/2025 10:00:13 AM Printed by: Julie Bakken 14/73 58% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rent HAP Repayment 17,506.00 17,506.00 3301 Admin Subsidy 7,282.00 57,006.00 69,800.00 (12,794.00)82% 3301.1 HAP Subsidy 45,701.00 345,109.00 515,000.00 (169,891.00)67% 3610 Investment Income (0062)10.26 61.92 130.00 (68.08)48% 3690.1 Other Revenue HAP 30,000.00 (30,000.00)0% TOTAL INCOME 52,993.26 419,682.92 614,930.00 (195,247.08)68% EXPENSES 4140 Staff Training 1,716.00 4,400.00 2,684.00 39% 4150 Travel 39.90 244.30 250.00 5.70 98% 4190 Other Admin Expenses (Apps, Service Charges)11.00 77.00 400.00 323.00 19% 4190.01 Manuals, Subscriptions 1,050.00 1,528.00 8,500.00 6,972.00 18% 4190.2 Management Fees-OTC 7,673.10 43,128.51 55,000.00 11,871.49 78% 4715.1 HAP Occupied Units 36,443.00 303,579.00 515,000.00 211,421.00 59% 4715.P HAP-Portability Out 2,880.00 11,403.00 15,000.00 3,597.00 76% 4716.P Port Out Admin Fee 91.06 322.18 500.00 177.82 64% TOTAL EXPENSES 48,188.06 361,997.99 599,050.00 237,052.01 60% SURPLUS 4,805.20 57,684.93 15,880.00 41,804.93 363% Otter Tail County Housing Redevelopment Authority Operating Statement Seven Months Ending 07/31/2025 Program: Housing Choice Vouchers Project: Consolidated Percent of Year www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 9:11:02 AM Printed by: Julie Bakken 15/73 Period Amount Balance ASSETS 1111 Cash Unrestricted 1,501.20 109,817.85 1121 Fraud A/R 17,506.00 TOTAL ASSETS 1,501.20 127,323.85 LIABILITIES AND SURPLUS LIABILITIES 2112 A/P HAP (3,304.00)858.00 TOTAL LIABILITIES (3,304.00)858.00 SURPLUS 2700 Inc & Exp Clearing 3,175.69 2700 Inc & Exp Clearing (Unclosed 2024) 903.00 2805 Restricted Net Position 26,005.74 2805 Restricted Net Position (Current Year) 6,378.00 30,127.00 2806 Unrestricted Position 38,696.49 2806 Unrestricted Position (Current Year) (1,572.80)27,557.93 TOTAL SURPLUS 4,805.20 126,465.85 TOTAL LIABILITIES AND SURPLUS 1,501.20 127,323.85 Otter Tail County Housing Redevelopment Authority Balance Sheet July 2025 Program: Housing Choice Vouchers Project: Consolidated www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 9:11:01 AM Printed by: Julie Bakken 16/73 Doc Num Voided Type #01-00000683-00-0 June 25 No INV #01-00000684-00-1 June 25 No INV #01-00000621-00-0 June 25 No INV #01-00010108-00-9 June 25 No INV #01-00010350-00-0 June 25 No INV #01-00010787-04 June 25 No INV #01-00041004-00-6 June 25 No INV #01-00041101-00-0 June 25 No INV #01-00041152-00-6 June 25 No INV #1129723 June 25 No INV #1130792 June 25 No INV #1130793 June 25 No INV #1130796 June 25 No INV #1130798 June 25 No INV #1130799 June 25 No INV #1130903 June 25 No INV #1143860 June 25 No INV #20072296 June 25 No INV #440572 June 25 No INV #480160 June 25 No INV #480161 June 25 No INV #991 721 5394 4 June 25 No INV 7494 No CHK 7495 No CHK 7496 No CHK 7497 No CHK 7498 No CHK 7499 No CHK 7500 No CHK7501NoCHK 7502 No CHK 7503 No CHK 7504 No CHK 7505 No CHK 7506 No CHK 7507 No CHK Doc Num Voided Type 142 No CHK 1000 No CHK 1000 No CHK 1021 No CHK 1022 No CHK 1062 No CHK 1352 No CHK 2919 No CHK 2921 No CHK 3807 No CHK 5012 No CHK 10521994 No MO 10525206 No CHK 22-097381545 No MO 22-100982018 No MO 22-101216895 No MO 38043721078 No MO 38043721247 No MO Cleared: 18 $7,274.90 Uncleared: 0 $0.00 Total Deposits: 18 $7,274.90 07/02/2025 Payment - Money Order Yes $520.00 07/21/2025 Payment - Money Order Yes $100.00 07/24/2025 Payment - Money Order Yes $135.00 07/02/2025 Payment - Money Order Yes $564.00 07/21/2025 Payment - Bank Check Yes $215.00 07/07/2025 Payment - Money Order Yes $208.53 07/07/2025 Payment - Check Yes $912.52 07/02/2025 Payment - Money Order Yes $40.00 07/29/2025 Payment - Check Yes $500.00 07/29/2025 Payment - Check Yes $450.00 07/07/2025 Payment - Check Yes $150.33 07/29/2025 Payment - Check Yes $500.00 07/02/2025 Payment - Check Yes $237.15 07/07/2025 Payment - Check Yes $400.00 07/24/2025 Payment - Check Yes $835.00 07/02/2025 Payment - Check Yes $835.00 07/29/2025 Payment - Check Yes $229.37 07/24/2025 Payment - Check Yes $443.00 Posted Deposits Control Date Document Description Cleared Amount 07/25/2025 Paint - Henning No $393.36 Cleared: 30 $5,128.58 Uncleared: 6 $2,437.36 Total Payments: 36 $7,565.94 07/25/2025 Bowtie Remotes No $45.00 07/25/2025 July 25 Mileage & Expense Reimb Yes $115.10 07/25/2025 ACOP Update & Offline ACOP Update No $900.00 07/25/2025 Model Admin & Cont Policy Digital Rev Serv 10-1-25 to 9-30-26 No $239.00 07/25/2025 Paint & Paint Supplies Yes $626.90 07/25/2025 Lawn Mowing/Trimming 206 Holden No $260.00 07/25/2025 Replaced Laundry Box - Henning No $600.00 07/25/2025 Service Call Yes $100.95 07/11/2025 Language Line June 2025 Yes $213.59 07/11/2025 Henning - Unit Clean Up Yes $1,339.76 07/11/2025 Lawn Mowing Henning Yes $90.00 07/11/2025 Water, Gas, Sewer Yes $608.71 06/10/2025 Gas Yes $29.22 07/11/2025 CO/Smoke Alarm Yes $49.99 06/30/2025 Gas Yes $32.79 06/30/2025 Gas Yes $30.90 06/18/2025 Electric Yes $73.89 06/30/2025 Gas Yes $46.00 06/18/2025 Electric Yes $71.55 06/18/2025 Electric Yes $75.11 06/18/2025 Electric Yes $61.78 06/18/2025 Electric Yes $61.34 06/18/2025 Electric Yes $36.96 06/18/2025 Electric Yes $69.33 06/18/2025 Electric Yes $30.24 06/18/2025 Electric Yes $79.87 07/03/2025 Water, Electric, Gas, Sewer Yes $165.26 07/03/2025 Water, Electric, Gas, Sewer Yes $231.14 06/26/2025 Water, Sewer Yes $94.56 07/03/2025 Water, Electric, Gas, Sewer Yes $250.00 06/26/2025 Water, Sewer Yes $92.81 06/26/2025 Water, Sewer Yes $93.91 06/30/2025 Water, Sewer Yes $83.53 07/03/2025 Water, Electric, Gas, Sewer Yes $188.07 Payment Date Document Description Cleared Amount 06/30/2025 Water, Sewer Yes $85.32 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Public Housing Posted Payments www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 2 8/13/2025 10:08:39 AM Printed by: Julie Bakken 17/73 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Public Housing End of Report Total:54 $14,840.84 Tenant Accounts 18 $7,274.90 Tenant Accounting - 18 $7,274.90 Vendor Accounting - 14 $5,582.36 Vendor Accounting Total 36 $7,565.94 Transaction Type Summary Transaction Type Count Amount Vendor Accounting - 22 $1,983.58 Total:54 $14,840.84 Check (CHK)26 $11,289.73 Money Order (MO)6 $1,567.53 Count Amount Invoice (INV)22 $1,983.58 Project Summary Program - Project Payments Deposits Public Housing - Family $7,565.94 $7,274.90 Total:$7,565.94 $7,274.90 Document Type Summary Document Type www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 2 of 2 8/13/2025 10:08:39 AM Printed by: Julie Bakken 18/73 58% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rental 5,087.00 38,789.00 39,500.00 (711.00)98% 3401.1 HUD Operating Subsidy 23,150.00 32,000.00 (8,850.00)72% 3401.2 HUD Capital Funds-Operations/Admin 7,108.00 7,000.00 108.00 102% 3401.3 HUD Capital Funds-Project 40,257.19 35,000.00 5,257.19 115% 3610 Interest Income (5673/0070)9.84 64.19 250.00 (185.81)26% 3690 Other Income (NSF, Late Fee, GR Support)44.00 540.00 21,000.00 (20,460.00)3% 3690.1 Water Charge Income 603.18 4,262.15 7,000.00 (2,737.85)61% 3690.2 Electric Charge Income 994.52 6,081.91 13,000.00 (6,918.09)47% 3690.3 Gas Charge Income 366.03 7,502.09 10,000.00 (2,497.91)75% 3690.31 Sewer Charge Income 682.73 4,862.04 7,500.00 (2,637.96)65% 3690.4 Other Tenant Charges (Maint)507.55 507.55 TOTAL INCOME 7,787.30 133,124.12 172,250.00 (39,125.88)77% EXPENSES 4130 Legal 2,000.00 2,000.00 0% 4140 Staff Training 229.00 4,400.00 4,171.00 5% 4150 Travel 67.20 102.20 300.00 197.80 34% 4171 Audit 2,400.00 2,400.00 100% 4190 Other Admin Expenses (Reports, Apps)343.65 200.00 (143.65)172% 4190.01 Manuals, Subscriptions 1,139.00 1,139.00 650.00 (489.00)175% 4190.06 Advertising 200.00 200.00 0% 4190.08 Consulting Fees 213.59 213.59 (213.59) 4190.2 Management Fees-OTC 25,000.00 25,000.00 100% 4310 Water 642.59 3,862.53 7,000.00 3,137.47 55% 4320 Electric 836.80 3,828.68 13,000.00 9,171.32 29% 4330 Gas 389.18 6,887.57 10,000.00 3,112.43 69% 4331 Sewer 723.72 4,413.72 7,500.00 3,086.28 59% 4420 Maintenance - Materials 1,118.15 3,502.50 6,000.00 2,497.50 58% 4430 Maintenance - Contracts 1,095.95 5,197.91 14,000.00 8,802.09 37% 4431 Garbage and Trash Removal Contracts 1,339.76 1,339.76 500.00 (839.76)268% 4510 Insurance 30,964.60 28,500.00 (2,464.60)109% 4520 PILOT 3,330.00 3,330.00 0% 4521 Assessments 969.26 1,050.00 80.74 92% 4570 Collection Loss 500.00 500.00 0% 4580 Interest Expense (on Security Deposits)100.00 100.00 0% 4600 Capital Fund Projects 40,257.19 40,000.00 (257.19)101% 4610 Extraordinary Maintenance 3,500.00 3,500.00 0% TOTAL EXPENSES 7,565.94 130,651.16 170,130.00 39,478.84 77% SURPLUS 221.36 2,472.96 2,120.00 352.96 117% Otter Tail County Housing Redevelopment Authority Operating Statement Seven Months Ending 07/31/2025 Program: Public Housing Project: Consolidated Percent of Year www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 9:24:31 AM Printed by: Julie Bakken 19/73 Period Amount Balance ASSETS 1111 Cash (1,516.20)102,546.59 1114 Tenant Security Deposit Cash 1,235.00 11,536.36 1122 A/R Tenants 917.27 8,938.27 1122.1 Allowance for Doubtful Accts (200.00) 1129 A/R Other 0.83 1400.5 Accumulated Depreciation (1,154,045.22) 1400.6 Land 32,990.31 1400.7 Buildings 1,687,791.45 TOTAL ASSETS 636.07 689,558.59 LIABILITIES AND SURPLUS LIABILITIES 2111.1 A/P Tenants (205.00) 2114 Tenant Security Deposits 1,235.00 11,536.36 2119 Accounts Payable (418.66) 2119.1 A/P Admin 418.66 2240 Tenants Prepaid Rent (615.29)1,014.67 TOTAL LIABILITIES 414.71 12,551.03 SURPLUS 2700 Income/Expense Clearing Account (123,145.14) 2700 Income/Expense Clearing Account (Current Year) 221.36 2,472.96 2700 Income/Expense Clearing Account (Unclosed 2024) 25,057.87 2802 Invested in Capital Assets, Net of Related Debt 679,466.94 2806 Unrestricted Net Position 93,154.93 TOTAL SURPLUS 221.36 677,007.56 TOTAL LIABILITIES AND SURPLUS 636.07 689,558.59 Otter Tail County Housing Redevelopment Authority Balance Sheet July 2025 Program: Public Housing Project: Consolidated www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 9:24:30 AM Printed by: Julie Bakken 20/73 Doc Num Voided Type 1020 No CHK 1021 No CHK 02-00002351-00-7 JUN25 No INV 02-00002371-00-3 JUN25 No INV 20118158 MAY 2025 No INV 20118160 MAY 2025 No INV 20118161 MAY 2025 No INV 20118163 MAY 2025 No INV 20118164 MAY 2025 No INV 20118165 MAY 2025 No INV Doc Num Voided Type 1241 No CHK 1244 No CHK 5500 No CHK 99129091 No CHK 22-097381516 No MO 22-097381517 No MO 9912901368 No CHK 9913339031 No CHK End of Report Total:18 $4,713.72 Tenant Accounts 8 $3,447.79 Tenant Accounting - 8 $3,447.79 Vendor Accounting - 2 $425.74 Vendor Accounting Total 10 $1,265.93 Transaction Type Summary Transaction Type Count Amount Vendor Accounting - 8 $840.19 Total:18 $4,713.72 Invoice (INV)8 $840.19 Money Order (MO)2 $998.00 Count Amount Check (CHK)8 $2,875.53 Project Summary Program - Project Payments Deposits Finding Home I LLC - $1,265.93 $3,447.79 Total:$1,265.93 $3,447.79 Document Type Summary Document Type Cleared: 8 $3,447.79 Uncleared: 0 $0.00 Total Deposits: 8 $3,447.79 07/21/2025 Payment - Check Yes $362.50 07/29/2025 Payment - Check Yes $362.50 07/07/2025 Payment - Money Order Yes $925.00 07/07/2025 Payment - Money Order Yes $73.00 07/02/2025 Payment - Check Yes $936.23 07/21/2025 Payment - Check Yes $362.50 07/07/2025 Payment - Check Yes $362.50 07/29/2025 Payment - Check Yes $63.56 Posted Deposits Control Date Document Description Cleared Amount 06/06/2025 ELECTRIC Yes $62.77 Cleared: 9 $1,062.89 Uncleared: 1 $203.04 Total Payments: 10 $1,265.93 06/06/2025 ELECTRIC Yes $31.97 06/06/2025 ELECTRIC Yes $52.81 06/06/2025 ELECTRIC Yes $66.03 06/06/2025 ELECTRIC Yes $32.05 07/11/2025 WATER/SEWER Yes $273.08 06/06/2025 ELECTRIC Yes $73.00 07/25/2025 GARBAGE No $203.04 07/11/2025 WATER/SEWER Yes $248.48 Payment Date Document Description Cleared Amount 07/25/2025 SOLAR SALT Yes $222.70 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Finding Home I LLC Posted Payments www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 9:51:56 AM Printed by: Julie Bakken 21/73 58% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Rent Revenue 3,300.00 22,539.00 60,000.00 (37,461.00)38% 3210 Replacement Reserves (Emergency/Updating)2,100.00 (2,100.00)0% 3610 Interest Income 1.45 8.11 8.11 3690 Other Income (NSF, Late Fees)124.00 5,100.00 (4,976.00)2% TOTAL INCOME 3,301.45 22,671.11 67,200.00 (44,528.89)34% EXPENSES 4130 Legal 1,500.00 1,500.00 0% 4150 Travel 16.80 (16.80) 4190 Administrative Expense (1.50)500.00 501.50 0% 4190.06 Advertising/Marketing/Printing 750.00 750.00 0% 4310 Water 333.56 1,407.94 3,000.00 1,592.06 47% 4320 Electric 57.75 448.48 1,000.00 551.52 45% 4331 Sewer 188.00 1,128.00 2,400.00 1,272.00 47% 4410 Maintenance-Labor 2,000.00 2,000.00 0% 4420 Maintenance-Materials 1,597.29 1,500.00 (97.29)106% 4430 Maintenance-Contracts 222.70 2,007.70 12,900.00 10,892.30 16% 4431 Garbage/Trash Removal 203.04 947.44 3,300.00 2,352.56 29% 4510 Insurance 5,031.22 5,000.00 (31.22)101% 4521 Property Taxes/Assessments 5,200.00 5,200.00 TOTAL EXPENSES 1,005.05 12,583.37 39,050.00 26,466.63 32% SURPLUS 2,296.40 10,087.74 28,150.00 (18,062.26)36% Otter Tail County Housing Redevelopment Authority Operating Statement Seven Months Ending 07/31/2025 Program: Finding Home I LLC Project: Consolidated Percent of Year www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 8:42:17 AM Printed by: Julie Bakken 22/73 Period Amount Balance ASSETS 1111 Cash 2,183.31 31,600.20 1114 Tenant Security Deposit Cash 3,300.00 1122 A/R Tenants 69.54 142.54 1400.5 Accumulated Depreciation (2,034.50) 1400.6 Land 13,500.00 1400.7 Buildings 1,456,410.28 TOTAL ASSETS 2,252.85 1,502,918.52 LIABILITIES AND SURPLUS LIABILITIES 2114 Tenant Security Deposit 3,300.00 2240 Tenant Prepaid Rents (43.55)1,617.68 TOTAL LIABILITIES (43.55)4,917.68 SURPLUS 2700 Income/Expense Clearing Account 33,537.32 2700 Income/Expense Clearing Account (Current Year) 2,296.40 10,087.74 2700 Income/Expense Clearing Account (Unclosed 2024) 1,454,375.78 TOTAL SURPLUS 2,296.40 1,498,000.84 TOTAL LIABILITIES AND SURPLUS 2,252.85 1,502,918.52 Otter Tail County Housing Redevelopment Authority Balance Sheet July 2025 Program: Finding Home I LLC Project: Consolidated www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 8/13/2025 8:42:17 AM Printed by: Julie Bakken 23/73 24/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY FERGUS FALLS, MINNESOTA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024 25/73 TABLE OF CONTENTS ROSTER OF OFFICIALS INDEPENDENT AUDITOR'S REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS FINANCIAL STATEMENTS Page 1 2 6 Statement of Net Position Statement of Revenues, Expenses, and Changes in Net Position Statement of Cash Flows Notes to the Financial Statements SUPPLEMENTARY INFORMATION Combining Schedule of Net Position Combining Schedule of Revenues, Expenses, and Changes in Net Position Combining Schedule of Cash Flows Schedule of Capital Fund Costs Schedule of Expenditures of Federal Awards INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT 10 11 12 14 23 25 27 29 30 AUDITING STANDARDS 31 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 33 SCHEDULE OF FINDINGS AND QUESTIONED COSTS SCHEDULE OF PRIOR YEAR FINDINGS CORRECTIVE ACTION PLAN 36 40 41 26/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY ROSTER OF OFFICIALS -UNAUDITED DECEMBER 31, 2024 Name Position Term Expires Wayne Johnson Chairperson August2027 Lee Rogness Commissioner August2029 Betty Murphy Commissioner August2025 Kurt Mortenson Commissioner August 2028 Jeff Ackerson Commissioner August2026 -1- 27/73 Brady Martz INDEPENDENT AUDITOR'S REPORT Board of Commissioners Otter Tail County Housing and Redevelopment Authority Fergus Falls, Minnesota Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the business-type activities of Otter Tail County Housing and Redevelopment Authority, a component unit of Otter Tail County, Minnesota, as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities of Otter Tail County Housing and Redevelopment Authority, as of December 31, 2024, and the changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Otter Tail County Housing and Redevelopment Authority, and to meet our ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Make Every Day Count I ww.briidymilru.c.om -2- 28/73 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Otter Tail County Housing and Redevelopment Authority's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements . Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable per_iod of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. -3-Make Every Day Count I www.bradymartz.com 29/73 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority's basic financial statements. The combining schedules, capital fund costs, and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining schedules, capital fund costs, and schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Roster of Officials on page 1 but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. -4-Make Every Day Count I www.bradymartz.com 30/73 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 11, 2025, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Otter Tail County Housing and Redevelopment Authority's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. ~PIPAiy BRADY, MARTZ & ASSOCIATES, P.C. GRAND FORKS, NORTH DAKOTA July 11, 2025 -5-Make Every Day Count I www.bradymartz.com 31/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31, 2024 INTRODUCTION The Otter Tail County Housing and Redevelopment Authority's (the Authority) Management's Discussion and Analysis (MD&A) is designed to (a) assist the reader in focusing on significant financial information, (b) provide an overview of the financial activity, (c) identify changes in the financial position (its ability to address the next and subsequent year challenges), and (d) identify individual issues or concerns. Since the MD&A is designed to focus on the current year's activities, resulting changes, and current known facts, it should be read in conjunction with the Authority's financial statements. FINANCIAL HIGHLIGHTS Key financial highlights for the 2024 fiscal year include the following: • The assets of the Authority exceeded its liabilities at the close of the recent fiscal year by $4,826,727 (net position). Of this amount, $3,535,534 (unrestricted net position) may be used to meet the Authority's ongoing obligations to citizens and creditors. • The Authority's cash and cash equivalents balance at December 31, 2024 was $3,368,683, representing an increase of $455,753 from December 31, 2023. • The Authority had HUD Grant revenue of $834,516, an increase of $163,489 from that received in 2023. OVERVIEW OF THE FINANCIAL STATEMENTS The discussion and analysis is intended to serve as an introduction to the Authority's basic financial statements. The Authority's basic financial statements comprise two components: 1) Financial statements, and , 2) Notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. The Authority is a special-purpose government engaged only in Housing Assistance type activities and accounts for its financial activities as an enterprise fund. Accordingly, only business- activities financial statements are presented as the basic financial statements. The financial statements are prepared on the accrual basis of accounting. Therefore, revenues are recognized when earned and expenses are recognized when incurred. Capital assets are capitalized and depreciated, except for land, over their useful lives. See notes to the financial statements for a summary of the Authority's significant accounting policies and practices. The Authority's basic financial statements include the statement of net position, the statement of revenues, expenses and changes in net position, and the statement of cash flows. The statement of net position provides information about the nature and amount of assets and obligations (liabilities) of the Authority as of the end of the year. The statement of revenues, expenses and changes in net position reports revenues and expenses for the current year. The statement of cash flows reports cash receipts, cash payments, and net changes in cash resulting from operating activities, capital and related financing activities, and investing activities. -6- 32/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS -CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2024 This report also contains other supplementary information in addition to the basic financial statements themselves. The Authority is a special-purpose government engaged only in Housing Assistance type activities and accounts for its financial activities as an enterprise fund. Accordingly, only business-activities financial statements are presented as the basic financial statements. The financial statements are prepared on the accrual basis of accounting. Therefore, revenues are recognized when earned and expenses are recognized when incurred. Capital assets are capitalized and depreciated, except for land, over their useful lives. See notes to the financial statements for a summary of the Authority's significant accounting policies and practices. USING THIS ANNUAL REPORT Our auditors have provided assurance in their independent auditor's report, located immediately preceding this Management's Discussion and Analysis, that the Basic Financial Statements are fairly stated. Varying degrees of assurance are being provided by the auditors regarding the other information included in this report. A user of this report should read the independent auditor's report carefully to ascertain the level of assurance being provided for each of the other parts of this report. CHANGES IN NET POSITION Total net position increased from the previous year by $1,043,417. The largest component of net position is unrestricted. Unrestricted net position increased from the previous year by $379,124. FINANCIAL POSITION The following table summarizes the financial position of the Authority as of December 31, 2024 and 2023. Condensed Statement of Net Position Current assets Loans receivable, noncurrent Capital assets, net Total assets Current liabilities Long-term liabilities Total liabilities Net position Net investment in capital assets Restricted Un restricted Total net position -7- $ 2024 3,426,025 159,494 2,061,213 5,646,732 63,592 756,413 820,005 1,270,167 21,026 3,535,534 $ $ 4,826,727 $ 2023 3,021,624 164,663 614,998 3,801,285 17,975 17,975 614,998 11,902 3,156,410 3,783,310 33/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS -CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2024 The following table summarizes the changes in net position of the Authority for the years ended December 31, 2024 and 2023: Condensed Statement of Revenues, Expenses and Changes in Net Position 2024 2023 Operating revenues $ 2,738,650 $ 2,122,260 Operating expenses 1,733,725 1,550,442 Operating income (loss) 1,004,925 571,818 Nonoperating income (loss) 38,492 60,570 Change in net position 1,043,417 632,388 Total net position -beginning of year 3,783,310 3,150,922 Total net position -end of year $ 4,826,727 $ 3,783,310 Operating revenues increased by $616,390 as a result of a combination of factors. From prior year, grants from federal, state and local governments increased by approximately $475,000. The increase was primarily offset by the sale of various assets held for resale, which resulted in a net decrease of approximately $36,000. In addition, property tax revenues increased by approximately $178,000 and revenues from other sources experienced a decrease of approximately $12,000. Operating expenses increased by $183,283 due to increases in contracted management services of approximately $94,000, general expenses of $30,000, and housing assistance payments of $163,000 and decreases in service agreement fees of $128,000. Federal grants totaled $834,516 for the year ended December 31, 2024 and $671,027 for the year ended December 31, 2023. Housing Units Managed The following table shows housing units managed by the Authority for the years ended December 31, 2024 and 2023: Owned by Authority Units under vouchers Total housing units managed CAPITAL ASSETS 2024 19 102 121 2023 13 98 111 During 2024, there were additions for the North Fields of Dalton buildings and construction in progress relating to that project. There was also a vehicle disposed of during 2024. Please see Note 5 for additional details. DEBT ADMINISTRATION As of December 31, 2024, the Authority had long-term debt for the North Fields of Dalton project. The debt was issued in March of 2024 for $825,000 and had a balance as of December 31, 2024 of $791,046. Please see Note 7 for additional details. -8- 34/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS -CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2024 ECONOMIC FACTORS The Otter Tail County Housing and Redevelopment Authority administers several programs aimed at providing affordable housing choices for individuals, families, and seniors seeking both rental and owner-occupied housing. The Authority also operates rehabilitation programs in partnership with homeowners and rental property owners. From time to time, the Authority also responds to specific community requests for services to redevelop properties that, due to their condition, are obsolete or unsafe, and have a detrimental impact in the community. While the Authority receives federal funding from the Department of Housing and Urban Development (HUD) for its Housing Choice Voucher and Public Housing program, the Authority's budget is also bolstered by the Special Benefit Levy permitted in state law for housing authorities and other public or private funding sources. Combined, the Authority uses these funding sources to accomplish its mission in partnership with cities and townships. REQUESTS FOR INFORMATION The annual financial report is designed to provide a general overview of the Authority's finances for all those with an interest in the Authority's finances. Questions concerning any information provided in this report or requests for additional information should be addressed to Amy Baldwin, Executive Director, Otter Tail County Housing and Redevelopment Authority, 500 W Fir Ave, Fergus Falls, Minnesota 56537. -9- 35/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY STATEMENT OF NET POSITION DECEMBER 31, 2024 Current assets Cash and cash equivalents Restricted cash Accounts receivable ASSETS Tenants, net of allowance for doubtful accounts Taxes receivable Loans receivable, current Prepaid expenses Total current assets Noncurrent assets Loans receivable, net of allowance for doubtful accounts Capital assets Nondepreciable Depreciable, net Total capital assets Total noncurrent assets Total assets Current liabilities Accounts payable Payment in lieu of taxes Tenant security deposits Unearned revenue Accrued interest LIABILITIES AND NET POSITION Note payable, current portion Due to other governments Total current liabilities Long-term liabilities Note payable, net of current portion Total long-term liabilities Total liabilities Net position Net investment in capital assets Restricted for Section 8 HAP Unrestricted Total net position See Notes to the Financial Statements -10- $ 3,336,769 31,914 1,499 29,927 9,905 16,011 3,426,025 159,494 169,528 1,891,685 2,061,213 2,220,707 5,646,732 8,078 3,950 10,888 1,159 1,994 34,633 2,890 63,592 756,413 756,413 820,005 1,270,167 21,026 3,535,534 $ 4,826,727 36/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED DECEMBER 31, 2024 Operating revenues Dwelling rentals Property taxes HUD operating grants Operating subsidy Housing Choice Vouchers Other government grants Tenant utility charges Proceeds on sale of assets held for resale Cost of sale on assets held for resale Fraud recovery Other Total operating revenues Operating expenses Service agreement fees Contract services Professional services Bad debt expense Advertising Office expense Travel Dues Staff training Consulting fees Tenant services Utilities Repairs and maintenance Insurance General expenses Payments in lieu of taxes Housing assistance payments Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Interest income Interest expense Capital grants Conveyance of forfeited lands Gain (loss) on disposal of capital assets Total nonoperating revenues (expenses) Change in net position Net position -beginning of year Net position -end of year See Notes to the Financial Statements -11- $ 41,742 1,494,866 136,459 664,517 324,544 39,659 6,400 (42,589) 1,721 71,331 2,738,650 503,879 6,893 92,444 36,156 1,024 9,937 1,060 926 5,115 16,491 16,673 36,579 56,889 58,858 185,272 3,948 657,597 43,984 1,733,725 1,004,925 12,383 (18,559) 33,540 13,500 (2,372) 38,492 1,043,417 3,783,310 $ 4,826,727 37/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2024 Cash flows from operating activities: Receipts from tenants Receipts from other governmental units Receipts from property taxes Other receipts Payments to vendors Payments to other governmental units Payments for housing assistance Other payments Net cash provided (used) by operating activities Cash flows from capital and related financing activities: Acquisition of capital assets Proceeds from disposal of capital assets Proceeds from notes payable Payments on notes payable Capital grants Interest paid Net cash provided (used) by capital and related financing activities Cash flows from investing activities: Payments received on loans receivable Issuance of loans Interest received Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents -beginning of year Cash and cash equivalents -end of year Reconciliation of cash and cash equivalents Cash and cash equivalents Restricted cash -tenant security deposits Restricted cash -Section 8 HAP Total See Notes to the Financial Statements -12- $ 73,069 1,125,520 1,495,260 123,204 (340,313) (504,382) (657,597) (187,224) 1,127,537 (1,482,332) 3,260 825,000 (33,954) 33,540 (16,565) (671,051 ) 74,704 (87,820) 12,383 (733) 455,753 2,912,930 $ 3,368,683 $ 3,336,769 10,888 21,026 $ 3,368,683 38/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY STATEMENT OF CASH FLOWS-CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2024 Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities: Depreciation Bad debt expense (recovery) Changes in assets and liabilities Accounts receivable Taxes receivable Assets held for resale Prepaid expenses Accounts payable Payments in lieu of taxes Tenant security deposits Unearned revenue Due to other funds Due to other governments Cash flows from operating activities Schedule of noncash investing, capital and financing activities: Gain on conveyance of forfeited lands Forgiveness of loans receivable See Notes to the Financial Statements -13- $ 1,004,925 43,984 36,156 (8,392) 394 42,589 (1,114) 6,279 555 1,714 (491) (1,952) 2,890 $ 1,127,537 $ 13,500 248,455 39/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Otter Tail County Housing and Redevelopment Authority (the Authority) is a separate legal entity formed by Otter Tail County, Minnesota under the State of Minnesota statutes. The Authority was formed to own and operate housing for low-income clients, which is accounted for in the Low Rent Public Housing activity. The Authority has an agreement with the Housing and Urban Development (HUD) to help individuals and families procure decent and affordable housing by subsidizing their rent payments (Housing Choice Vouchers Program), which is accounted for in the Section 8 Housing Choice Vouchers activity. All other activities of the Authority are accounted for in the General & State/Local activity. The Authority, a component unit of Otter Tail County, Minnesota, was established in 1972 and is governed by a five-member Board of Commissioners who are appointed by the Otter Tail County Board of Commissioners. General The accounting policies of the Authority conform to accounting principles generally accepted in the United States of America. Basis of Accounting The Authority is a governmental entity and uses the proprietary fund model to account for its operations; therefore, the accrual basis of accounting is followed. Under this method of accounting, revenues are recognized when earned and expenses are recognized when incurred. When both restricted and unrestricted resources are available for use, it is the Authority's policy to use restricted resources first and then unrestricted resources as needed. Basis of Presentation The funds of the Otter Tail County Housing and Redevelopment Authority are presented as proprietary funds. Proprietary funds are used to account for operations financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund 's principal ongoing operations. Operating revenues include intergovernmental revenue and property taxes. Operating expenses for proprietary funds include the cost of service agreement fees, contract services, housing assistance payments, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. -14- 40/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS -CONTINUED DECEMBER 31, 2024 The Authority reports on the following programs: The General & State/Local Fund accounts for money levied under state statute through Otter Tail County. These funds are used for both owner-occupied and rental rehabilitation throughout Otter Tail County, excluding the City of Fergus Falls. Owner- occupied loans are deferred over ten years and forgiven if the property remains owner occupied. These funds are also used to cover unreimbursed administration expenses in the Section 8 Housing Choice Voucher Program. The Low Rent Public Housing Program Fund is used to account for the operations of the 13 units (nine buildings) of family public housing that are rented to families who meet the low-income guidelines as established by the U.S. Department of Housing and Urban Development (HUD). Revenues for continuing operations consist primarily of dwelling rentals and operating subsidies from HUD. The Public Housing Capital Fund Program is used to account for grant funds provided to the Authority by HUD annually for capital and management activities, including the ongoing modernization of its public housing stock. The funds received for this program are transferred to the Low-Rent Public Housing Program. The Section 8 Housing Choice Voucher Program is used to account for the operation of the income-based program, which is funded by HUD. HUD contracts with the Authority, which, in turn, contracts with owners of rental housing to make assistance payments on the tenant's behalf. Payments made to the owners are generally the difference between the local payment standard and 30 percent of the family's adjusted gross income. The Finding Home Fund is used to account for the operations of the Affordable Senior Housing Program. Revenues for continuing operations consist primarily of dwelling rents at the North Fields of Dalton development. Cash and Cash Equivalents The Authority's cash and cash equivalents consist of savings and checking accounts, cash on hand, and certificates of deposit. Restricted cash is shown separately from cash and cash equivalents. Receivables Property tax levies are set by the Authority and are certified to Otter Tail County each year for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. Real property taxes are generally due from taxpayers in equal installments on May 15 and October 15. The County remits tax settlements to the Authority at various times during the year. Taxes collectible in a given calendar year are generally recognized as revenue during that fiscal year. Amounts due from individuals and organizations are recorded as receivables at year-end. Receivables in the Low Rent Public Housing Program Fund have been shown net of an allowance for uncollectible accounts of $200. -15- 41/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS-CONTINUED DECEMBER 31, 2024 Prepaid Expenses Certain payments to vendors reflecting expenses applicable to future accounting periods are recorded as prepaid expenses. Unearned Revenue As of December 31, 2024, the Authority has unearned revenue of $1,159, which represents prepaid tenant rent. Restricted Assets Certain funds of the Authority are classified as restricted assets on the statement of net position because the restriction is either imposed by law through constitutional provisions or enabling legislation or imposed externally by creditors, grantors, contributors, or laws or regulations of other governments. Therefore, their use is limited by applicable laws and regulations. Capital Assets Capital assets, which include land and buildings, are reported in the fund financial statements. Capital assets are defined by the Authority as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend lives are not capitalized. Capital assets are depreciated using the straight-line method over their useful lives (5-50 years). The estimated useful lives are as follows: Buildings and improvements Furniture, equipment and machinery Vehicles -16- 10-50 years 5-10 years 3 years 42/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS-CONTINUED DECEMBER 31, 2024 Net Position Classification Net position is classified and displayed in three components: a. Net investment in capital assets -Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position -Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c. Unrestricted net position -All other net position that does not meet the definition of "restricted" or "invested in capital assets." Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2 DEPOSITS AND INVESTMENTS Deposits In accorda_nce with Minnesota statutes, the Authority maintains deposits at those depository banks and brokerages authorized by the Authority Commission, all of which are covered by Federal Depository Insurance. Statutes require that all Authority deposits be protected by insurance, collateral, or surety bonds. The market value of the collateral pledged must be equal to or greater than 110% of the deposits not covered by insurance or bonds. At December 31, 2024, the carrying amount of the Authority's deposits was $3,368,683 and the bank balance was $3,390,978. The entire bank balance was covered by the Federal Depository Insurance Corporation (FDIC) and pledged collateral at December 31, 2024. Interest Rate Risk The Authority does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from changing interest rates. -17- 43/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS-CONTINUED DECEMBER 31, 2024 Credit Risk The Authority may invest idle funds in deposits that are properly secured by FDIC insurance coverage and are with designated depositories, which meet or exceed the Governmental National Mortgage Association Ratings. NOTE 3 RESTRICTED CASH Restricted cash consists of $9,238 in Low Rent Public Housing tenant security deposits, $21,026 restricted for HUD Section 8 vouchers, and $1,650 in Finding Home tenant security deposits. NOTE 4 LOANS RECEIVABLE The Authority offers several loan programs through its General & State/Local Fund. The loans due are from homeowners and landlords for assistance purchasing or rehabilitating properties. Homeowner rehab loans are "deferred loans" that are completely forgiven after ten years if all conditions are met. If the rehabilitated property is not sold, transferred, or otherwise conveyed within ten years, the conditions are met, and no repayment shall be due, the loan will be forgiven. If the conditions are not met, the recipient shall repay the principal amount of the loan, and the Authority shall have a lien for repayment of all funds. It is estimated that conditions are likely to be met by the borrower, and an allowance for the full amount of outstanding homeowner rehab loans has been recognized to offset the loan balance. Rental rehab loans are required to be paid back by the landlords in monthly payments, typically over ten years with a zero percent interest rate. Loans may have a forgivable portion, typically 25 percent, which will be forgiven after the first five years of loan compliance. The initial loan is reduced by the 25 percent forgivable portion when recorded on the books at inception. Down payment assistance loans are written for the term of the original mortgage on the home. The loans have a zero percent interest rate. The loans are to be repaid at final payment of original mortgage, upon loan refinancing, or upon sale or transfer of the property. The Authority records the loan at face value at inception, and it remains at that value until paid or written-off. Tax levy rehab loans are "deferred loans" that are forgivable at ten percent each year and completely forgiven after ten years, if all conditions are met. If the rehabilitated property is not sold, transferred, or otherwise conveyed within ten years, the conditions are met, and no repayment shall be due, the loan will be forgiven. If the conditions are not met, the recipient shall repay the principal amount of the loan, and the Authority shall have a lien for repayment of all funds. It is estimated that conditions are likely to be met by the borrower, and an allowance for the full amount of outstanding tax levy rehab loans has been recognized to offset the loan balance. -18- 44/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS-CONTINUED DECEMBER 31, 2024 Loans receivable activity for the year ended December 31, 2024, was as follows: Beginning Ending Balance Balance 1/1/2024 Additions Retirements 12/31/2024 Loan receivable Homeowner rehab $ 210,713 $ -$ (190,925) $ 19,788 $ Rental rehab 93,541 (49,062) 44,479 Down payment assistance 89,242 61,320 (25,642) 124,920 Tax levy rehab provision 232,803 26,500 {57,530) 201 ,773 Total 626,299 87,820 {323,159) 390,960 Allowance for doubtful accounts: Homeowner rehab (216,502) 190,925 (25,577) Tax levy rehab provision (227,014) (26,500) 57,530 (1 95,984) Total (443,516) {26,500) 248,455 (221 ,561 ) Total loan receivable, net $ 182,783 $ 61 ,320 $ (74,704) $ 169,399 $ NOTES CAPITAL ASSETS Due Within One Year 9,905 9,905 9,905 The Authority's capital asset activity for the year ended December 31, 2024, was as follows: Beginning Ending Balance Balance 1/1/2024 Additions Retirements 12/31/2024 Capital assets, not being depreciated: Land $ 59,390 $ 13,500 $ -$ 72,890 Construction in progress 96,638 96,638 Total capital assets not being depreciated 59,390 110,138 169,528 Capital assets, being depreciated: Buildings and improvements 1,661 ,870 1,385,694 3,047,564 Vehicles 9,657 (9,657) Total capital assets being depreciated 1,671,527 1,385,694 (9,657) 3,047,564 Less accumulated depreciation for: Buildings and improvements (1,112,431) (43,448) (1, 155,879) Vehicles {3,488) {536) 4,024 Total accumulated depreciation (1,115,919) {43,984) 4,024 {1, 155,879) Total capital assets, being depreciated -net 555,608 1,341,710 (5,633) 1,891,685 Total capital assets $ 614,998 $ 1,451,848 $ (5,633) $ 2,061,213 NOTE 6 DUE TO OTHER GOVERNMENTS The Authority has $2,890 due to several local municipalities for utilities charges incurred but not paid as of December 31, 2024. NOTE 7 LONG-TERM LIABILITIES In March 2024, the Authority obtained project financing assistance from Otter Tail County of $825,000 to fund the North Fields of Dalton project. The agreement is a 20-year agreement maturing in November 2043 with annual payments totaling $50,454 at a 2% interest rate. -19- 45/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS-CONTINUED DECEMBER 31, 2024 The following is a summary of the activity in long-term liabilities for the year: Interest Balance Balance Rate 1/1/2024 Additions Retirements 12/31/2024 North Fields of Dalton Loan 2.00% $ -$ 825,000 $ (33,954) $ 791,046 Totals $ -$ 825,000 $ (33,954) $ 791,046 The debt requirements to maturity for long-term liabilities are as follows: Princieal Interest Total 2025 $ 34,633 $ 15,821 $ 50,454 2026 35,326 15,128 50,454 2027 36,033 14,421 50,454 2028 36,753 13,701 50,454 2029 37,488 12,966 50,454 2030-2034 198,993 53,277 252,270 2035-2039 219,704 32,566 252,270 2040-2043 192,116 9,700 201,816 Totals $ 791,046 $ 167,580 $ 958,626 NOTE 8 ANNUAL CONTRIBUTIONS CONTRACT Current Maturities $ 34,633 $ 34,633 The Authority has an annual contributions contract for Section 8 Housing Choice Vouchers and adjustments vary based on requirements. The total of administrative and HAP revenues was $748,363 for 2024. NOTE 9 RISK MANAGEMENT The Authority is exposed to various risks of losses including general liability, property damage and employee bodily injury. The insurance coverage is considered to be adequate to cover unexpected claims against the Authority. The Authority retains the responsibility to cover any settlements exceeding the specific coverage. There was no reduction in coverage from the prior year and settlements have not exceeded insurance coverage in the past three years. NOTE 10 COMMITMENTS AND CONTINGENCIES Grants The Authority participates in federal grant programs, which are governed by various rules and regulations of the grantor agency. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agency; therefore, to the extent that the Authority has not complied with the rules and regulations governing the grants, refunds of any money received may be required and the collectability of any related receivable at December 31, 2024, may be impaired. In the opinion of the Authority, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying financial statements for such contingencies. -20- 46/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS-CONTINUED DECEMBER 31, 2024 NOTE11 MANAGEMENTFEES The Authority has a management contract with Otter Tail County. Under this contract, the County will provide on-site workspace, internet access, technology, technological support, and office related functions to the Authority as needed. The County will make County employees available to support operations and purposes of the Authority. The services under the agreement began on January 1, 2022, and are renewed automatically for additional one-year terms. Either party may terminate this agreement early, upon not less than 90 days' notice given in writing prior to the end of the fiscal year. The management fee paid by the Authority was $503,879 for the year ended December 31, 2024 . NOTE 12 NEW PRONOUNCEMENTS GASB Statement No. 102, Certain Risk Disclosures, requires entities to disclose critical information about their exposure to risks due to certain concentrations or limitations that could lead to financial distress or operational challenges. This statement is effective for fiscal years beginning after June 15, 2024. GASB Statement No. 103, Financial Reporting Model Improvements, revises the requirements for management's discussion and analysis with the goal of making it more readable and understandable, requires unusual or infrequent items to be presented separately, defines operating and nonoperating revenues, includes a new section for noncapital subsidies for proprietary funds' statement of revenues, expenses and changes in net position, removes the option to disclose major component information in the notes and requires them to be shown individually or in combine financial statements following the fund financial statements and requires budgetary comparisons to be presented as RSI with new columns for variances between original-to-final budget and final budget-to-actual results. This statement is effective for fiscal years beginning after June 15, 2025. GASB Statement No. 104, Disclosure of Certain Capital Assets, establishes requirements for certain types of capital assets to be disclosed separately in the capital assets note. These items include disclosing separately lease assets, intangible right-to-use assets, subscription assets and intangible assets. In addition, additional disclosures will be required for capital assets held for sale. This statement is effective for fiscal years beginning after June 15, 2025. Earlier application is encouraged. Management has not yet determined the effect these pronouncements will have on the Authority's financial statements. -21- 47/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS-CONTINUED DECEMBER 31, 2024 NOTE13 SUBSEQUENTEVENTS The Authority received 30% of its funding from federal sources for the year ended December 31, 2024. As of the date of these financial statements, there is uncertainty regarding the continued availability or adequacy of this funding in future periods. The operations of the Authority are subject to the administrative directives, rules and regulations of federal regulatory agencies, including, but not limited to, the Department of Housing and Urban Development (HUD). Such administrative directives, rules and regulations are subject to change by an act of Congress or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related cost, including the additional administrative burden, to comply with a change. No other significant events occurred subsequent to the Authority's year end. Events have been evaluated through July 11, 2025, which is the date the financial statements were available to be issued. -22- 48/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY COMBINING SCHEDULE OF NET POSITION DECEMBER 31, 2024 Section 8 Low Rent Housing General & Public Choice Finding State/Local Housing Vouchers Home Totals ASSETS Current assets Cash and cash equivalents $ 3,150,311 $ 114,899 $ 49,705 $ 21,854 $ 3,336,769 Restricted cash 9,238 21,026 1,650 31,914 Accounts receivable Tenants, net of allowance for doubtful accounts 1,499 1,499 Taxes receivable 29,927 29,927 Loans receivable, current 9,905 9,905 Prepaid expenses 16,011 16,011 Total current assets 3,206,154 125,636 70,731 23,504 3,426,025 Noncurrent assets Loans receivable, net of allowance for doubtful accounts 159,494 159,494 Capital assets Nondepreciable 26,400 32,990 110,138 169,528 Depreciable, net 534,179 1,357,506 1,891,685 Total capital assets (net) 26,400 567,169 1,467,644 2,061,213 Total noncurrent assets 185,894 567,169 1,467,644 2,220,707 Total assets $ 3,392,048 $ 692,805 $ 70,731 $ 1,491,148 $ 5,646,732 -23- 49/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY COMBINING SCHEDULE OF NET POSITION -CONTINUED DECEMBER 31, 2024 Section 8 Low Rent Housing General & Public Choice Finding State/Local Housing Vouchers Home Totals LIABILITIES AND NET POSITION Current liabilities Accounts payable $ 3,709 $ 1,477 $ 1,950 $ 942 $ 8,078 Payment in lieu of taxes 3,800 150 3,950 Tenant security deposits 9,238 1,650 10,888 Unearned revenue 434 725 1,159 Accrued interest 1,994 1,994 Note payable, current portion 34,633 34,633 Due to other governments 2,890 2,890 Total current liabilities 40,336 17,839 1,950 3,467 63,592 Long-term liabilities Note payable, net of current portion 756,413 756,413 Total long-term liabilities 756,413 756,413 Total liabilities 796,749 17,839 1,950 3,467 820,005 Net position Net investment in capital assets (764,646) 567,169 1,467,644 1,270,167 Restricted 21,026 21,026 Unrestricted (deficit) 3,359,945 107,797 47,755 20,037 3,535,534 Total net position $ 2,595,299 $ 674,966 $ 68,781 $ 1,487,681 $ 4,826,727 -24- 50/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEAR ENDED DECEMBER 31, 2024 Operating revenues Dwelling rents Property taxes HUD operating grants Operating subsidy Housing Choice Vouchers Other government grants Tenant utility charges Proceeds on sale of assets held for resale Cost of sale on assets held for resale Fraud recovery Other Total operating revenues Operating expenses Service agreement fees Contract services Professional services Bad debt expense Advertising Office expense Travel Dues Staff training Consulting fees Tenant services Utilities Repairs and maintenance Insurance General expenses Payments in lieu of taxes Housing assistance payments Depreciation Total operating expenses Operating income (loss) General & State/Local Low Rent Public Housing Section 8 Housing Choice Vouchers Finding Home Totals $ • $ 40,243 $ - $ 1,499 $ 41,742 1,494,866 324,544 6,400 (42,589) 68,987 1,852,208 404,682 6,298 81,800 26,500 1,024 4,866 734 926 3,422 10,611 16,673 8,030 32,785 183,919 537 782,807 1,069,401 -25- 52,613 83,846 664,517 39,659 1,721 ___ 1_,_,4_5_2 892 133,967 750,976 25,000 10,644 9,656 802 237 1,564 1,795 35,637 48,859 26,073 912 3,798 41 181 206,158 (72,191 ) 74,197 4,078 89 129 4,085 441 657,597 740 616 10,360 1,494,866 136,459 664,517 324,544 39,659 6,400 (42,589) 1,721 71,331 ___ 1..,_,4'-'-9-'-9 2,738,650 595 191 942 150 2,266 4144 (2,645) 503,879 6,893 92,444 36,156 1,024 9,937 1,060 926 5,115 16,491 16,673 36,579 56,889 58,858 185,272 3,948 657,597 43,984 1,733,725 1,004,925 51/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2024 Section 8 Low Rent Housing General & Public Choice Finding State/Local Housing Vouchers Home Totals Nonoperating revenues (expenses) Interest income 12,001 257 124 12,383 Interest expense (18,494) (65) (18,559) Capital grants 33,540 33,540 Transfers in 1,476,825 1,476,825 Transfers out (1,476,825) (1,476,825) Gain (loss) on acquisition of capital assets 13,500 13,500 Gain (loss) on disposal of capital assets (2,372) (2,372) Total nonoperating revenues (expenses) (1,485,690) 33,732 124 1,490,326 38,492 Change in net position (416,289) (38,459) 10,484 1,487,681 1,043,417 Net position -beginning of year 3,011,588 713,425 58,297 3,783,310 Net position -end of year $ 2,595,299 $ 674,966 $ 68,781 $ 1.487,681 $ 4,826,727 -26- 52/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY COMBINING SCHEDULE OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2024 Section 8 Low Rent Housing General & Public Choice Finding State/Local Housing Vouchers Home Totals Cash flows from operating activities: Receipts from tenants $ -$ 69,195 $ -$ 3,874 $ 73,069 Receipts from other governmental units 324,544 52,613 748,363 1,125,520 Receipts from property taxes 1,495,260 1,495,260 Other receipts 119,139 1,452 2,613 123,204 Payments to vendors (207,167) (125,232) (7,128) (786) (340,313) Payments to other governmental units (404,682) (25,503) (74,197) (504,382) Payments for housing assistance (657,597) (657,597) Other payments {183,919) (2,864) (441 ) (187,224) Net cash provided (used) by operating activities: 1,143,175 (30,339) 11 ,613 3,088 1,127,537 Cash flows used by noncapital financing activities: Transfers (to) from other funds 1,476,825 1,476,825 Transfers to other funds (1,476,825) (1,476,825) Net cash provided (used) by noncapital financing activities (1,476,825) 1,476,825 Cash flows from capital and related financing activities: Acquisition of capital assets (25,922) (1 ,456,410) (1 ,482,332) Proceeds from disposal of capital assets 3,260 3,260 Proceeds on loans payable 825,000 825,000 Payments on loans payable (33,954) (33,954) Capital grants 33,540 33,540 Interest paid (1 6,500) (65) (16,565) Net cash provided (used) for capital and related financing activities 777,806 7 553 (1,456,410) (671 ,051 ) Cash flows from investing activities: Payments received on loans receivable 74,704 74,704 Issuance of loans receivable (87,820) (87,820) Interest received 12,001 257 124 12,383 Net cash provided (used) for investing activities (1,115) 257 124 (733) Net increase (decrease) in cash and cash equivalents 443,041 (22,529) 11 ,737 23,504 455,753 Cash and cash equivalents, Beginning of year 2,707,270 146,666 58,994 2,912,930 Cash and cash equivalents, End of year $ 3,150,311 $ 124,137 $ 70,731 $ 23,504 $ 3,368,683 Reconciliation of cash and cash equivalents Cash $ 3,150,311 $ 114,899 $ 49,705 $ 21 ,854 $ 3,336,769 Restricted cash 9,238 21,026 1 650 31 ,914 TOTAL $ 3,150,311 $ 124,137 $ 70 731 $ 23,504 $ 3,368,683 -27- 53/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY COMBINING SCHEDULE OF CASH FLOWS -CONTINUED Reconciliation of cash flows from operating activities FOR THE YEAR ENDED DECEMBER 31, 2024 Section 8 Low Rent Housing General & Public Choice State/Local Housing Vouchers Finding Home Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities: $ 1,069,401 $ (72,191) $ 10,360 $ (2,645) $ Depreciation Bad debt expense (recovery) Changes in assets and liabilities: Accounts receivable Taxes receivable Assets held for resale Prepaid expenses Accounts payable Payments in lieu of taxes Tenant security deposits Unearned revenue Due to other funds Due to other governments Cash flows provided (used) by operating activities Schedule of noncash investing, capital and financing activities: 537 26,500 1,163 394 42,589 (1,114) 3,705 $ 1,143,175 $ 41,181 2,266 9,656 (9,555) 379 1,253 942 405 150 64 1,650 (1,216) 725 (1,952) 2,890 (30,339) $ 11,613 $ 3,088 $ Totals 1,004,925 43,984 36,156 (8,392) 394 42,589 (1,114) 6,279 555 1,714 (491) (1,952) 2,890 1,127,537 Conveyance of forfeited lands Forgiveness of loans receivable $ -$ -$ -$ 13,500 $ 13,500 248,455 248,455 -28- 54/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY SCHEDULE OF CAPITAL FUND COSTS DECEMBER 31, 2024 Grant Year Grant Year Grant Year Grant Year 2024 2023 2022 2021 Grant Year 2020 MN46P17750124 MN46P17750123 MN46P17750122 MN46P17750121 MN46P17750120 Funds Approved $ 43,824 $ 42,596 $ 41 ,622 $ 34,652 $ 33,107 Funds Expended 12,994 34,694 34,652 21,210 Excess of Funds Approved $ 43,824 $ 29,602 $ 6,928 $ -$ 11 897 -29- 55/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2024 Federal Grants Federal AL Number Federal Expenditures Direct Programs: US Department of Housing and Urban Development Housing Voucher Cluster Section 8 Housing Choice Vouchers Total Housing Voucher Cluster Public and Indian Housing Public Housing Capital Fund Total Expenditures of Federal Awards 14.871 14.850 14.872 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES $ $ 748,363 748,363 45,308 40,845 834,516 Expenditures reported on the accompanying schedule of expenditures of federal awards (the "Schedule") are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. NOTE 2 -INDIRECT COST RA TE The Otter Tail County Housing and Redevelopment Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 3 -BASIS OF PRESENTATION The Schedule includes the federal award activity of the Otter Tail County Housing and Redevelopment Authority under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. -30- 56/73 Brady Martz INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Commissioners Otter Tail County Housing and Redevelopment Authority Fergus Falls, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities of Otter Tail County Housing and Redevelopment Authority as of and for the year ended December 31, 2024, and the related notes to the financial statements and have issued our report thereon dated July 11, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 1 Make Every Day Count I www.bradymartz.com -3 - 57/73 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, non-compliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. BRADY, MARTZ & ASSOCIATES, P .C. GRAND FORKS, NORTH DAKOTA July 11, 2025 -32-Make Every Day Count I www.bradymartz.com 58/73 Brady Martz INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Commissioners Otter Tail County Housing and Redevelopment Authority Fergus Falls, Minnesota Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the Otter Tail County Housing and Redevelopment Authority's compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement that could have a direct and material effect on the Otter Tail County Housing and Redevelopment Authority's major federal program for the year ended December 31, 2024. The Otter Tail County Housing and Redevelopment Authority's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion, the Otter Tail County Housing and Redevelopment Authority complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2024. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Otter Tail County Housing and Redevelopment Authority and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Otter Tail County Housing and Redevelopment Authority's compliance with the compliance requirements referred to above. -33-Make Every Day Count I ww.bradymaru.com 59/73 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Otter Tail County Housing and Redevelopment Authority's federal programs. Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Otter Tail County Housing and Redevelopment Authority's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Otter Tail County Housing and Redevelopment Authority's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Otter Tail County Housing and Redevelopment Authority's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the Otter Tail County Housing and Redevelopment Authority's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Otter Tail County Housing and Redevelopment Authority's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items 2024-001, 2024-002, and 2024-003. Our opinion on each major federal program is not modified with respect to these matters. -34-Make Every Day Count I www.bradymartz.com 60/73 Government Auditing Standards requires the auditor to perform limited procedures on the Otter Tail County Housing and Redevelopment Authority's responses to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The Otter Tail County Housing and Redevelopment Authority's responses were not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. Report on Internal Control Over Compliance Our consideration of the internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2024-001, 2024-002, and 2024-003 to be significant deficiencies. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Government Auditing Standards requires the auditor to perform limited procedures on the Otter Tail County Housing and Redevelopment Authority's responses to the internal control over compliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The Otter Tail County Housing and Redevelopment Authority's responses were not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. BRADY, MARTZ & ASSOCIATES, P.C. GRAND FORKS, NORTH DAKOTA July 11, 2025 -35-Make Every Day Count I www.bradymartz.com 61/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2024 Section I-Summary of Auditor's Results Financial Statements Type of auditor's report issued: Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weaknesses? Type of auditor's report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Identification of major programs: AL Number{s} Name of Federal Program or Cluster 14.871 Housing Choice Vouchers Cluster Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? -36- Unmodified __ yes yes yes yes _x_yes Unmodified _x_yes $750,000 yes x no x no x no x no no no x no 62/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS -CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2024 Section II-Financial Statement Findings There are no findings which are required to be reported under this section. Section Ill-Federal Award Findings and Questioned Costs 2024-001 Eligibility Federal Program U.S. Department of Housing and Urban Development AL #14.871 -Significant Deficiency. Grant Award No. MN177-Housing Choice Voucher Federal Award Year 2024 Criteria As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). The PHA must also determine income eligibility and calculate the tenant's rent payment using the documentation from third- party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Condition During our review of tenant files, one file did not maintain proof of citizenship or eligible immigrant status. The same tenant file was also missing documentation of a social security number. We also noted during our review of tenant files, one file did not correctly calculate the tenant's rent payment. Questioned Costs None. Context We reviewed a sample of 11 of the Authority's 108 tenant files for eligibility requirements. Effect Tenants may receive HAP funding without meeting eligibility requirements and HAP payments may be paid in the incorrect amounts. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. -37- 63/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS -CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2024 Recommendation We recommend the Authority review their procedures of determining eligibility to ensure all requirements are obtained and maintained and that a review of the files is taking place to ensure proper HAP payments. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement auditor's recommendation. 2024-002 Housing Quality Standards Inspections Federal Program U.S. Department of Housing and Urban Development AL #14.871 -Significant Deficiency Grant Award No. MN177-Housing Choice Voucher Federal Award Year 2024 Criteria The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HOS) and the HA must conduct quality control re- inspections. Condition During our review of quality control re-inspections, it was noted 7 quality control re-inspections were required, but only 4 were performed. Questioned Costs None. Context We reviewed a sample of 2 of the Authority's 7 quality control re-inspections for HOS Inspection requirements. Effect A lack of quality control review over inspections could lead to inspections being performed incorrectly and a tenant living in a unit that does not meet Housing Quality Standards. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority review the compliance requirements to gain an understanding on how to determine the required number of re-inspections. -38- 64/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS -CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2024 Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor's recommendation. 2024-003 HQS Enforcement Federal Program U.S. Department of Housing and Urban Development AL #14.871 -Significant Deficiency Grant Award No. MN177-Housing Choice Voucher Federal Award Year 2024 Criteria For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life-threatening HQS deficiencies within 24 hours after the inspection and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition During our testing of failed inspections, we noted one instance in which a life threatening deficiency was not corrected within 24 hours and HAP was not abated. Questioned Costs None. Context We reviewed a sample of 3 of the Authority's 30 failed inspections for HQS Enforcement requirements. Effect Tenant may be living in units that do not meet HQS. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority review their procedures in following up on life threatening deficiencies to ensure they are corrected in the appropriate time frame. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor's recommendation. -39- 65/73 2023-001 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2023 Preparation of Financial Statements Criteria -An appropriate system of internal control requires the Authority to prepare financial statements in compliance with accounting principles generally accepted in the United States of America. Condition -The Authority's personnel prepare periodic financial information for internal use that meets the needs of management and the board. However, the Authority does not prepare financial statements, including accompanying note disclosures, as required by accounting principles generally accepted in the United States of America. The Authority has elected to have the auditors assist in the preparation of the financial statements and notes. Current year status -Corrective action has been taken and the finding has been removed. 2023-002 Proposition of Journal Entries Criteria -The Authority is required to maintain internal controls at a level where underlying support for the general ledger accounts can be developed and a determination can be made that the general ledger accounts are properly reflected in accordance with GAAP. Condition -During our audit, adjusting entries to the financial statements were proposed in order to properly reflect the financial statements in acc~rdance with GAAP. Current year status -Corrective action has been taken and the finding has been removed. -40- 66/73 HOUSING AND REDEVELOPMENT AUTHORITY OTTERTAIL COUNTY· MINNESOTA CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2024 2024-001 Contact Person Amy Baldwin, Executive Director Corrective Action Plan Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2025 2024-002 Contact Person Amy Baldwin, Executive Director Corrective Action Plan The Authority will review the program compliance requirements to ensure an accurate understanding of all requirements is obtained. Planned Completion Date for CAP December 31, 2025 2024-003 Contact Person Amy Baldwin, Executive Director Corrective Action Plan The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2025 218-998-8730 ottertailcounty.gov -41 - hra@ottertailcounty.gov OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION September 3, 2025 BOARD MEETING DATE AGENDA ITEM #5B Tanya Westra 08/25/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Resolution No. 315 Accepting the Grant Award for the Bring it Home Rental Assistance Program With funds appropriated by the State, MN Housing created the Bring It Home Rental Assistance Program to assist the lowest income families in paying rent. MN Housing staff developed a methodology to estimate the initial grant amount. Otter Tail County (excluding Fergus Falls) was expected to receive $ 96,327 per year to include housing assistance payments as well as an administrative fee. Earlier this year, MN Housing accepted applications from potential program administrators. The HRA had requested $120,000 per year with $1,000 in start-up costs. The HRA was awarded $193,654 for two years (same as initial estimate) of assistance payments, administrative fees and start-up costs. Staff is in the process of completing due diligence items required by MN Housing. Once all documents are submitted and approved, MN Housing will email the contract for execution. Staff recommends the approval of Resolution No. 315 PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 08/25/2025 ATTACHMENT LIST: A. Resolution No. 315 FINANCIAL IMPLICATIONS: Administrative Fee paid to HRA BUDGETED: YES X NO FUNDING: MN Housing COMMENTS 67/73 RESOLUTION NO. 315 RESOLUTION ACCEPTING THE GRANT AWARD FOR THE BRING IT HOME RENTAL ASSISTANCE PROGRAM WHEREAS, Minnesota Housing is granting funding to Program Administrators for the Bring It Home Rental Assistance Program; and WHEREAS, the Housing and Redevelopment Authority of Otter Tail County has a documented need for the addition of rental assistance vouchers; and WHEREAS, the Housing and Redevelopment Authority of Otter Tail County plans to accept the grant award from Minnesota Housing for the Bring It Home Rental Assistance vouchers; and WHEREAS, the 2-year grant award to be accepted is in the amount of $193,654.00. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Housing and Redevelopment Authority of Otter Tail County accepts funding from Minnesota Housing and authorizes the following individuals to sign the contract and execute necessary documents: a. Amy Baldwin, Executive Director, abaldwin@ottertailcounty.gov, 218-998-8050 b. Tanya Westra, Housing Program Supervisor, twestra@ottertailcounty.gov, 218-998-8732 Upon the motion of ________________________, seconded by _________________________, and passed on a ___________________ vote, the above resolution is hereby adopted by the Housing and Redevelopment Authority of Otter Tail County Board of Commissioners. Adopted this 3rd day of September 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 68/73 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION September 3, 2025 BOARD MEETING DATE AGENDA ITEM # 5C Amy Baldwin 08/25/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 316, Adopting Accounting Policy and Procedure PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED Brady Martz has suggested that the HRA have an Accounting Policy and Procedure in place. The policy as shown in Exhibit A and establishes the process for the how the HRA pays invoices and landlords as well as makes deposits. The proposed policy follows current practice by staff. EXECUTIVE DIRECTOR DATE: Amy Baldwin 08/25/2025 ATTACHMENT LIST: A. Accounting Policy & Procedure B. Resolution No. 316 FINANCIAL IMPLICATIONS: N/A BUDGETED: YES NO FUNDING: N/A COMMENTS 69/73 RESOLUTION NO. 316 RESOLUTION ADOPTING ACCOUNTING POLICY AND PROCEDURE WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) routinely conducts financial transactions; and WHEREAS, the Authority has determined it prudent to adopt a policy regarding accounting practices; and WHEREAS, the Authority has drafted policy regarding appropriate procedures with regard to payment of invoices and bank deposits; and WHEREAS, the Policy as represented in Exhibit A is appropriate for consistency and financial management of the financial transactions. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Policy presented as Exhibit A is hereby adopted. 2. That the Executive Director is authorized, empowered, and directed to undertake any other tasks as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolution. Upon the motion of ________________________, seconded by_______________________, and passed on a ___________________vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 3rd day of September 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 70/73 EXHIBIT A 218-998-8730 ottertailcounty.gov hra@ottertailcounty.gov Otter Tail County Housing and Redevelopment Authority Accounting Policies and Procedures Updated 9/3/2025 1 - Accounting Policy: The duties regarding processing invoices for payment and distributing checks are segregated between HRA administrative staff and finance staff to ensure accurate payments to authorized vendors and to detect and prevent fraudulent transactions. Procedures – Processing HRA Invoices, Check Preparation, Printing, and Payment 1. Invoices and any mail pertaining to finances (i.e. tax documents, etc.) are picked up from the mail room or HRA office daily by the HRA Accountant. 2. HRA checks are printed every other Friday and Housing Assistance Payment checks are printed and mailed on the 1st day of the month. The deadline for submitting invoices for payment is noon Thursday of Bill Pay Deadline Day. 3. The HRA Accountant codes invoices for General Revolving, HCV and Finding Home I LLC. Public Housing invoices are coded by both the HRA Accountant and staff responsible for property management. All invoices are reviewed and approved by the Executive Director or designee and returned to the HRA Accountant for payment. 4. HRA Accountant enters invoice data into software. 5. HRA Accountant advises the designated Otter Tail County Finance staff member that the checks are ready to be printed. 6. OTC Finance staff member prints checks and returns to the HRA Accountant for mailing and/or delivery. The reverse occurs with Finding Home I LLC payments. OTC Finance staff member enters invoices into software and advises HRA Accountant that the checks are ready to be printed. HRA Accountant prints the checks and mails. 2 – Accounting Policy: The duties associated with preparing and distributing payments to Rental Property Owners in the Housing Voucher Programs are segregated between HRA administrative staff and finance staff to ensure accurate payments, identifying payments that need to be held for future payment, to prevent fraudulent payments to “ghost”/unauthorized property owners, and to create accurate information for reporting to the Voucher Management System. Procedures - Monthly Housing Assistance Payment Checks to participating Rental Property Owners in the Housing Voucher Programs 1. The Executive Director or designee must review and authorize all HAP payments. The OTC Finance Director may substitute for the Executive Director or designee if unavailable. 71/73 HOUSING AND REDEVELOPMENT AUTHORITY ti) EQUAL HOUSING OPPORTUNITY Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 2. Staff responsible for the housing voucher programs will enter the information needed into the software for preparing the HAP checks. Once completed, they will prepare the summary spreadsheet entitled Monthly Housing Assistance Payment and Households with Source Documents and submit the spreadsheet to the Executive Director or designee for authorization to print the checks. In order to complete this spreadsheet, the following reports need to be downloaded from the software: a. Accounting Roll for regular and portable vouchers (two separate modules in software) payment and utility reimbursement payments, including “holds for future payment” which should be noted on the report. b. HAP Contract Registers for regular and portable vouchers (two separate modules in software) for the upcoming first of the month. c. Complete the spreadsheet with the total number of regular voucher and portable numbers (two separate modules in software), as well as “On Hold” transactions and $0 HAP payments to be effective on the first day of the month. In addition, insert the total dollar amount of all Housing Assistance payments, regular and portable vouchers including utility reimbursements, and any additional housing assistance payments that were missed or on hold that can be paid. 3. The Executive Director or designee will review the spreadsheet and any reports and then will sign and date the spreadsheet to signify approval. The spreadsheet and reports shall be kept in a monthly file on OneDrive. 4. Once the Executive Director or designee authorizes the payments, the staff responsible for the housing voucher programs will send the summary spreadsheet and accompanying reports to the HRA Accountant who will then review and confirm the amounts to be paid and complete the procedures to prepare the checks for printing. 5. Once the checks are prepared, the HRA Accountant will advise the OTC Finance staff member to print the checks. 6. The OTC Finance staff member prints the checks and advises the HRA Accountant that the checks are completed. 7. After the checks are printed, the staff responsible for the housing voucher programs prints the following reports to ensure that the checks printed match the number and amounts of the previous reports: a. Procedure 8 for HAP transactions and utility reimbursements, Procedure 7 for on-hold. b. Procedure 7 for HAP port out and utility reimbursement payments and Procedure 6 for on-hold. 8. The HRA Accountant will mail the checks; from time to time there may be inserts into the mailing. 9. The HRA Accountant is responsible for entering voucher transaction data into the Voucher Management System by the 22nd of the month after the reporting month (e.g. by March 22 for February). To accomplish this, the HRA Accountant is responsible to run the following reports for regular vouchers and portable vouchers approximately five business days before the 22nd: a. VMS Detail Report (PHA Web) b. General Ledger (PHA Web) c. Housing Voucher Rental Assistance Program Summary of Actions (from Board Packet) d. RNP & UNP Spreadsheet Summary of Information (Finance folder on OneDrive) 72/73 10. Staff responsible for the housing voucher programs and the HRA Accountant should collaborate as necessary to ensure as much accuracy as possible for the VMS entry. 11. Based on the reports in #9 and any further information from staff responsible for the housing voucher programs, the HRA Accountant will prepare and enter the data necessary into VMS. 12. The HRA Accountant shall retain the reports and a copy of the VMS entry in a monthly file electronically in the Finance folder on OneDrive. Deposits 1. Cash is not accepted. 2. Payments are received either in the mail, in person or electronically through the OTC HRA housing software. An OTC HRA staff member will open the mail, date stamp it, and distribute to the Housing Program Supervisor. a. Checks received with HRA mail are given to the Housing Program Supervisor who will endorse with the agency endorser and then give to the staff member responsible for property management and/or Housing Assistance Coordinator to record into PHA Web. b. Deposits are given weekly to the HRA Accountant to deposit into the bank electronically through a scanning process. c. Documentation for the deposits completed by the HRA Accountant are given to the OTC Finance staff member for recording into PHA Web. Bank Reconciliations 1. The HRA Accountant completes the bank reconciliations and will communicate with the OTC Finance staff member any changes or inaccuracies to be corrected in the software. The HRA Accountant will notify the OTC Finance staff member that the bank reconciliations are completed. The OTC Finance staff member will review, initial and date them. The bank reconciliations are then scanned into Document Imaging in PHA Web. 73/73