FAC Explorer

Audit 372264

FY End
2025-06-30
Total Expended
$3.28M
Findings
2
Programs
1
Organization: Asi Freeport Senior Housing, Inc. (MN)
Year: 2025 Accepted: 2025-11-18
Auditor: BAKER MEINZ & ASSOCIATES LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1162585 2025-001 Material Weakness Yes B
1162586 2025-002 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $144,998 Yes 0

Contacts

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

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of ASI Freeport Senior Housing, Inc., HUD Project No. 071-EE224, and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of ASI Freeport Senior Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of ASI Freeport Senior Housing, Inc.
Expenditures 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 Uniform Guidance.
There are no HUD loans in this Project.

Finding Details

Finding 2025-001
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: 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 expense incorrectly paid was $4,543. Context: The Accounts Receivable - Operations account was tested at June 30, 2025. No sample was tested. Questioned Costs - $4,543; 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 pays the correct 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 - $4,543; Non-compliance code - R
Finding 2025-002
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-002: 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. Through testing, it was determined that the total cash receipts number used to calculate management fee was overstated. The details and results of the sample are as follows: Population - N/A, $22,926; Sample - N/A, $22,926; Not in Compliance - N/A, $22,926; Questioned Costs - $464; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $464 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the management fee overpayment as soon as possible. Total-Department of Housing and Urban Development $464; Non-compliance code - J