FAC Explorer

Audit 36206

FY End
2022-09-30
Total Expended
$946,442
Findings
4
Programs
2
Organization: Rose Court (MN)
Year: 2022 Accepted: 2023-06-05
Auditor: Hinrichs & Associates LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29971 2022-001 - - B
29972 2022-002 - - B
606413 2022-001 - - B
606414 2022-002 - - B

Programs

ALN Program Spent Major Findings
14.157 Section 202 Capital Advance $897,600 Yes 2
14.871 Section 8 Housing Assistance Payments $48,842 - 0

Contacts

Name Title Type
G3E3XJPRHCN4 Craig Ritter Auditee
3203020192 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. Rose Court has elected not to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
ROSE COURT HUD PROJECT NO. 092-EE009 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 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's residual receipt reserve cash balance was underfunded by $227 at September 30, 2022. Criteria: The Project failed to make the residual receipt reserve deposit relating to the surplus cash calculation for the year ended September 30, 2021. Effect: The Project's residual receipt reserve cash balance was underfunded by $227. Context: Activity in the residual receipt reserve account for the year ended September 30, 2022 was tested. No sample was tested. Questioned Costs $227 Cause: The management company forgot to make the required residual receipt reserve deposit. Recommendation: The Project should deposit $227 into the residual receipt reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management deposited $227 into the residual receipt reserve account in November 2022. Questioned Costs - Department of Housing and Urban Development $227 Non-compliance code - B
Finding 2022-002
ROSE COURT HUD PROJECT NO. 092-EE009 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2022 Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's security deposit liability account was underfunded at September 30, 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 $148. Context: The security deposit funding was tested at September 30, 2022. No sample was tested. Questioned costs $148 Cause: Management failed to recognize that the security deposit liability account was underfunded at September 30, 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 liabilty balance on a monthly basis. Questioned Costs - Department of Housing and Urban Development $148 Non-compliance code - M
Finding 2022-001
ROSE COURT HUD PROJECT NO. 092-EE009 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 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's residual receipt reserve cash balance was underfunded by $227 at September 30, 2022. Criteria: The Project failed to make the residual receipt reserve deposit relating to the surplus cash calculation for the year ended September 30, 2021. Effect: The Project's residual receipt reserve cash balance was underfunded by $227. Context: Activity in the residual receipt reserve account for the year ended September 30, 2022 was tested. No sample was tested. Questioned Costs $227 Cause: The management company forgot to make the required residual receipt reserve deposit. Recommendation: The Project should deposit $227 into the residual receipt reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management deposited $227 into the residual receipt reserve account in November 2022. Questioned Costs - Department of Housing and Urban Development $227 Non-compliance code - B
Finding 2022-002
ROSE COURT HUD PROJECT NO. 092-EE009 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2022 Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's security deposit liability account was underfunded at September 30, 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 $148. Context: The security deposit funding was tested at September 30, 2022. No sample was tested. Questioned costs $148 Cause: Management failed to recognize that the security deposit liability account was underfunded at September 30, 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 liabilty balance on a monthly basis. Questioned Costs - Department of Housing and Urban Development $148 Non-compliance code - M