Finding 25716 (2022-001)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-03-06

AI Summary

  • Core Issue: The Project overpaid management fees due to incorrect calculations by the management company.
  • Impacted Requirements: The management fees must be calculated using the correct formula to ensure compliance.
  • Recommended Follow-up: The management company should repay the $3,454 overpayment to the Project promptly.

Finding Text

ASI - FREEPORT SENIOR HOUSING, INC. HUD PROJECT NO. 071-EE224 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project overpaid management fees to the management company. Criteria: The management company should calculate management fees using the correct formula. Effect: The Project's management fee expense is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee percentage for the year needed to be revised. The details and results of the sample are as follows: Number Dollars Population 1 $19,245 Sample 1 19,245 Not in Compliance 1 19,245 Questioned Costs $3,454 Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $3,454 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. Questioned Costs - Department of Housing and Urban Development $3,454 Non-compliance code - J

Corrective Action Plan

ASI - FREEPORT SENIOR HOUSING, INC. HUD PROJECT NO. 071-EE224 CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Freeport Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2022 The findings from the June 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 202, ASSISTANCE LISTING NUMBER 14.157 The Project overpaid management fees to the management company. Recommendation: The management company should repay the $3,454 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. If the Department of Housing and Urban Development has questions regarding this plan, please call Les Russo at 847-424-5601.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Section 202 Capital Advance $3.14M
14.157 Prac Assistance $109,846