FAC Explorer

Audit 22586

FY End
2022-06-30
Total Expended
$3.25M
Findings
2
Programs
2
Organization: Asi Freeport Senior Housing, Inc. (MN)
Year: 2022 Accepted: 2023-03-06
Auditor: Hinrichs & Associates LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25716 2022-001 - - B
602158 2022-001 - - B

Programs

ALN Program Spent Major Findings
14.157 Section 202 Capital Advance $3.14M Yes 1
14.157 Prac Assistance $109,846 Yes 0

Contacts

Name Title Type
LC1SH8KNNLM1 Les Russo Auditee
8474245601 Bob Baker Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on 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. ASI - Freeport Senior Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
ASI - FREEPORT SENIOR HOUSING, INC. HUD PROJECT NO. 071-EE224 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 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 overpaid management fees to the management company. Criteria: The management company should calculate management fees using the correct formula. Effect: The Project's management fee expense is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee percentage for the year needed to be revised. The details and results of the sample are as follows: Number Dollars Population 1 $19,245 Sample 1 19,245 Not in Compliance 1 19,245 Questioned Costs $3,454 Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $3,454 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. Questioned Costs - Department of Housing and Urban Development $3,454 Non-compliance code - J
Finding 2022-001
ASI - FREEPORT SENIOR HOUSING, INC. HUD PROJECT NO. 071-EE224 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 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 overpaid management fees to the management company. Criteria: The management company should calculate management fees using the correct formula. Effect: The Project's management fee expense is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee percentage for the year needed to be revised. The details and results of the sample are as follows: Number Dollars Population 1 $19,245 Sample 1 19,245 Not in Compliance 1 19,245 Questioned Costs $3,454 Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $3,454 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. Questioned Costs - Department of Housing and Urban Development $3,454 Non-compliance code - J