Audit 35632

"RCIL - OLMSTED BARRIER FREE HOUSING CORPORATION" HUD PROJECT NO. 092-11466 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 223(f), Assistance Listing Number 14.155 Condition: One of the tenant files tested contained a mathematical error in computing the household net income in the process of computing the tenant share of monthly rent. Criteria: The household net income should be computed accurately based on tenant information provided. Effect: The Project may have collected more HUD subsidy on this tenant than it should have. Context: A sample of tenant files was selected for testing household net income in the process of computing the tenant share of monthly rent. The test found a calculation that was not in compliance. The details and results of the sample are as follows: Number Dollars Population 25 N/A Sample 3 N/A Not in Compliance 1 N/A Questioned Costs N/A Cause: There was an error in interpreting some information provided by the tenant during the recertification process. Recommendation: The Project should recompute the HUD subsidy from this tenant and make an adjustment on a future monthly HUD billing, if necessary. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The HUD subsidy will be recomputed using the proper household income. If necessary, the excess amount received to date will reduce a future monthly HUD billing. Questioned Costs - Department of Housing and Urban Development N/A Non-compliance code - R

"RCIL - OLMSTED BARRIER FREE HOUSING CORPORATION" HUD PROJECT NO. 092-11466 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 223(f), Assistance Listing Number 14.155 Condition: One of the tenant files tested contained a mathematical error in computing the household net income in the process of computing the tenant share of monthly rent. Criteria: The household net income should be computed accurately based on tenant information provided. Effect: The Project may have collected more HUD subsidy on this tenant than it should have. Context: A sample of tenant files was selected for testing household net income in the process of computing the tenant share of monthly rent. The test found a calculation that was not in compliance. The details and results of the sample are as follows: Number Dollars Population 25 N/A Sample 3 N/A Not in Compliance 1 N/A Questioned Costs N/A Cause: There was an error in interpreting some information provided by the tenant during the recertification process. Recommendation: The Project should recompute the HUD subsidy from this tenant and make an adjustment on a future monthly HUD billing, if necessary. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The HUD subsidy will be recomputed using the proper household income. If necessary, the excess amount received to date will reduce a future monthly HUD billing. Questioned Costs - Department of Housing and Urban Development N/A Non-compliance code - R