Finding 1218311 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-06-24
Audit: 404552
Organization: Asi - Austin Texas, Inc. (MN)

AI Summary

  • Core Issue: One cash disbursement of $2,583 was incorrectly paid for another project, violating compliance rules.
  • Impacted Requirements: Projects must only cover their own expenses; paying for another project is not allowed.
  • Recommended Follow-up: Review invoices carefully before payment; accounts payable staff will receive reminders to prevent future errors.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 28 cash disbursements tested, 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 expenses incorrectly paid was $2,583 out of a total sample of disbursements of $74,209. Context: A sample of disbursements was selected for testing of compliance. The test found one disbursement that was not in compliance. The non-compliance had a financial effect outlined below. The details and results of the sample are as follows: Population - 212, $223,091; Sample - 28, $74,209; Not in Compliance - 1, $2,583; Questioned Costs - $2,583; 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 only pays the proper 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 - $2,583; Non-compliance code - R

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 28 cash disbursements tested, the Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. The finding was corrected in March 2026.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1218312 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $149,757