Finding 1169766 (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 household income, affecting the tenant's rent share.
  • Impacted Requirements: Accurate computation of household income based on tenant-provided information is required.
  • Recommended Follow-Up: Recompute the HUD subsidy and tenant rent for the affected tenant and adjust future HUD billing accordingly.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant's 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's 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 - 41, Dollars - N/A; Sample - 5, Dollars - N/A; Not in compliance - 1; $455; Questioned Costs - $455; 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 - $455; Non-compliance code : R

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT RCIL - Rochester Barrier Free Housing Corporation 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 finding from the September 30, 2025 schedule of findings and questioned costs is 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 2025-001: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant's 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 November 2025 and management will adjust the December 2025 HUD billing. If the Department of Housing and Urban Development has questions regarding this plan, please call Sarah Rosser at 952-876-9213.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $3.28M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $421,324