Audit 20226

MINNEHAHA COUNTY SUPPORTIVE HOUSING, INC. HUD PROJECT NO. 091-EE005 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's security deposit liability account was underfunded at December 31, 2022. Criteria: The Project should have a security deposit cash balance in excess of the security deposit liability balance. Effect: The security deposit account was underfunded by $133. Context: The security deposit account was tested at December 31, 2022. No sample was tested. Questioned costs NONE Cause: Management failed to recognize that the security deposit liability account was underfunded at December 31, 2022. Recommendation: The Project should carefully review the statement of financial position to make sure the security deposit liability account is funded. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will be reminded to review the tenant security deposit cash balance versus the security deposit liability balance on a monthly basis. Questioned Costs - Department of Housing and Urban Development $- Non-compliance code - M

MINNEHAHA COUNTY SUPPORTIVE HOUSING, INC. HUD PROJECT NO. 091-EE005 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Criteria: The Project should not pay the expenses of another project. Effect: The amount of expenses incorrectly paid was $65 out of a total sample of disbursements of $44,868. Context: A sample of disbursements was selected for testing of compliance. The test found one disbursement that was not in compliance. The non compliance had a financial effect outlined below. The details and results of the sample are as follows: Number Dollars Population 272 $262,614 Sample 25 44,868 Not in Compliance 1 65 Questioned Costs $65 Cause: The Project mistakenly paid an invoice of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. Total-Department of Housing and Urban Development $65 Non-compliance code - R

MINNEHAHA COUNTY SUPPORTIVE HOUSING, INC. HUD PROJECT NO. 091-EE005 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's security deposit liability account was underfunded at December 31, 2022. Criteria: The Project should have a security deposit cash balance in excess of the security deposit liability balance. Effect: The security deposit account was underfunded by $133. Context: The security deposit account was tested at December 31, 2022. No sample was tested. Questioned costs NONE Cause: Management failed to recognize that the security deposit liability account was underfunded at December 31, 2022. Recommendation: The Project should carefully review the statement of financial position to make sure the security deposit liability account is funded. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will be reminded to review the tenant security deposit cash balance versus the security deposit liability balance on a monthly basis. Questioned Costs - Department of Housing and Urban Development $- Non-compliance code - M

MINNEHAHA COUNTY SUPPORTIVE HOUSING, INC. HUD PROJECT NO. 091-EE005 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Criteria: The Project should not pay the expenses of another project. Effect: The amount of expenses incorrectly paid was $65 out of a total sample of disbursements of $44,868. Context: A sample of disbursements was selected for testing of compliance. The test found one disbursement that was not in compliance. The non compliance had a financial effect outlined below. The details and results of the sample are as follows: Number Dollars Population 272 $262,614 Sample 25 44,868 Not in Compliance 1 65 Questioned Costs $65 Cause: The Project mistakenly paid an invoice of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. Total-Department of Housing and Urban Development $65 Non-compliance code - R