Finding 15865 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-12-19

AI Summary

  • Core Issue: The Project's replacement reserve cash balance is short by $1,455 due to an improper withdrawal for an unpaid invoice.
  • Impacted Requirements: Compliance with HUD regulations regarding the management of replacement reserve funds.
  • Recommended Follow-up: Ensure the unpaid invoice is settled promptly to correct the cash balance discrepancy.

Finding Text

NHHI - ST. PAUL BARRIER FREE HOUSING CORPORATION HUD PROJECT NO. 092-11423 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) Year Ended September 30, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 223 (f), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project's replacement reserve cash balance for September 30, 2022 was $1,455 less than it should be. Criteria: The Project withdrew $1,455 from the replacement reserve account for an invoice that was unpaid as of September 30, 2022. Effect: The replacement reserve cash balance is $1,455 less than it should be at September 30, 2022. Context: Activity in the replacement reserve account for the year ended September 30, 2022 was tested. No sample was tested. Questioned Costs $1,455 Cause: The Project made a mistake and withdrew funds for an invoice that was unpaid as of September 30, 2022. Recommendation: The Project should pay the open invoice. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The Project will pay the open invoice immediately. Questioned Costs - Department of Housing and Urban Development $1,455 Non-compliance code - A

Corrective Action Plan

NHHI - ST. PAUL BARRIER FREE HOUSING CORPORATION HUD PROJECT NO. 092-11423 CORRECTIVE ACTION PLAN Year Ended September 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT NHHI - St. Paul Barrier Free Housing Corporation respectfully submits the following corrective action plan for the year ended September 30, 2022. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2022 The findings from the September 30, 2022 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 2022-001: SECTION 223 (f), ASSISTANCE LISTING NUMBER 14.155 The Project withdrew $1,455 from the replacement reserve account for an invoice that was unpaid as of September 30, 2022. Recommendation: The Project should pay the open invoice. Action Taken: The Project agrees with the finding. The Project paid the open invoice in October, 2022. If the Department of Housing and Urban Development has questions regarding this plan, please call JoAnn Rademacher 651-639-9799.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Section 223(a)(f) Insured Mortgage $1.59M
14.195 Section 8 Housing Assistance Payments Program $284,022