Finding 11252 (2023-001)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-02-01
Audit: 15039
Organization: Eagle Court Apartments (MN)

AI Summary

  • Issue: A tenant file had a math error in calculating household income for rent share.
  • Requirements Impacted: Accurate computation of household income based on tenant information is essential.
  • Recommended Follow-Up: Recompute the HUD subsidy and tenant rent for the affected tenant and adjust future billing.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 202, Assistance Listing Number 14.157 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Criteria: Household income should be computed accurately based on information provided by the tenant. Effect: There is no financial effect. Context: A sample of tenant files was selected for testing household income in the process of computing the tenant share of monthly rent. The test found a calculation that was not in compliance. The non-compliance did not have a financial effect. The details and results of the sample are as follows: Population - 12, $- N/A, Sample - 2, $ - N/A, Not in Compliance -1, $56, Questioned Costs - $56. Cause: There was an error in interpreting some information provided by the tenant during the certification process. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Tenant rent will be recomputed and management will adjust a future monthly HUD billing. Total-Department of Housing and Urban Development Questioned Costs - $56, Non-compliance code: R

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Eagle Court Apartments respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2023 The finding from the September 30, 2023 schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - NONE, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT - DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 202, Assistance Listing Number 14.157 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing. Project managers should be aware of the importance of computing the tenant's household income correctly. Action taken: The Project agrees with the finding. Tenant rent was recomputed in December 2023 and management will adjust the January 2024 HUD billing. If the Department of Housing and Urban Development has questions regarding this plan, please call Craig Ritter at 320-584-2423.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $957,900
14.871 Section 8 Housing Choice Vouchers $60,093