Finding 1169723 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-20

AI Summary

  • Core Issue: A tenant file had a mathematical error in calculating the medical expense deduction, affecting the tenant's rent share.
  • Impacted Requirements: Accurate computation of medical expense deductions based on tenant-provided information is required.
  • Recommended Follow-Up: Recompute the HUD subsidy and tenant rent for the affected tenant and adjust future monthly HUD billing.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: One of the tenant files tested contained a mathematical error in computing the tenant's medical expense deduction in the process of computing the tenant share of monthly rent. Criteria: The medical expense deduction 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 the medical expense deduction 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 - 47, Sample - 5, Not in Compliance - 1, $216; Questioned Costs - $216; 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 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- $216; Non-compliance code: R

Corrective Action Plan

NHHI/ASI - Senior Bloomington, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2025; The findings from the September 30, 2025 schedule of findings and questioned costs are discussed below. The findings are 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 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: For one of the tenant files tested, there was a mathematical error in computing the tenant's medical expense deduction 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, if necessary. Project managers should be aware of the importance of computing the tenant's medical expense deduction accurately. Action taken: Tenant rent was recomputed in October 2025 and management will adjust a future monthly HUD billing.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1169724 2025-002
    Material Weakness Repeat
  • 1169725 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $500,000
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $241,406