FAC Explorer

Audit 6251

FY End
2023-03-31
Total Expended
$3.87M
Findings
4
Programs
1
Organization: Asi Freeport, Inc. (MN)
Year: 2023 Accepted: 2023-12-12
Auditor: Hinrichs & Associates LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3971 2023-001 - - N
3972 2023-002 - - N
580413 2023-001 - - N
580414 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $123,318 Yes 0

Contacts

Name Title Type
VKF7DRESA2Y1 Les Russo Auditee
8473286633 Brian Baker Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: ASI Freeport, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of ASI Freeport, Inc., HUD Project No. 071-HD175, 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, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of ASI Freeport, Inc.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: ASI Freeport, 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 2023-001
FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - Condition: One of three tenant files tested did not contain a signed lease and a signed disability form. Criteria: All tenant files should include the tenant's signed lease and a signed disability form. Effect: The Project may not have collected the proper amount of HUD rent subsidy. Context: A sample of tenant files were selected for testing tenant information in the process of computing the tenant share of monthly rent. The test found one file did not include a copy of the tenant's signed lease or a signed disability form. The non compliance did not have a financial effect. The details and results of the sample are as follows: Population - 22, $123318, Sample - 3, $13836, Not in compliance -1, $3384, Questioned costs - $3384. Cause: The management company failed to retain the tenant's signed lease and a signed disability form during the certification process. Recommendation: Project personnel should be reminded that obtaining a signed lease and a signed disability form is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. Questioned Costs - Department of Housing and Urban Development - $3,384. Non-compliance code - R
Finding 2023-002
FINDING 2023-002: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of three tenant files tested did not contain a copy of the tenant's signed application. Criteria: All tenant files should include a copy of the tenant's signed application. Effect: There is no financial effect. Context: A sample of tenant files were selected for testing tenant information in the process of computing the tenant share of monthly rent. The test found one file did not include a copy of the tenants signed application. The non compliance did not have a financial effect. The details and results of the sample are as follows: Population-22, $123,318. Sample - 3, $13,836. Not in compliance - 1, Questioned costs - None. Cause: The management company failed to obtain the tenant's signed application during the move-in process. Recommendation: Project personnel should be reminded that retaining a signed application is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. Questioned Costs - Department of Housing and Urban Development - None. Non-compliance code - R
Finding 2023-001
FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - Condition: One of three tenant files tested did not contain a signed lease and a signed disability form. Criteria: All tenant files should include the tenant's signed lease and a signed disability form. Effect: The Project may not have collected the proper amount of HUD rent subsidy. Context: A sample of tenant files were selected for testing tenant information in the process of computing the tenant share of monthly rent. The test found one file did not include a copy of the tenant's signed lease or a signed disability form. The non compliance did not have a financial effect. The details and results of the sample are as follows: Population - 22, $123318, Sample - 3, $13836, Not in compliance -1, $3384, Questioned costs - $3384. Cause: The management company failed to retain the tenant's signed lease and a signed disability form during the certification process. Recommendation: Project personnel should be reminded that obtaining a signed lease and a signed disability form is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. Questioned Costs - Department of Housing and Urban Development - $3,384. Non-compliance code - R
Finding 2023-002
FINDING 2023-002: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of three tenant files tested did not contain a copy of the tenant's signed application. Criteria: All tenant files should include a copy of the tenant's signed application. Effect: There is no financial effect. Context: A sample of tenant files were selected for testing tenant information in the process of computing the tenant share of monthly rent. The test found one file did not include a copy of the tenants signed application. The non compliance did not have a financial effect. The details and results of the sample are as follows: Population-22, $123,318. Sample - 3, $13,836. Not in compliance - 1, Questioned costs - None. Cause: The management company failed to obtain the tenant's signed application during the move-in process. Recommendation: Project personnel should be reminded that retaining a signed application is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. Questioned Costs - Department of Housing and Urban Development - None. Non-compliance code - R