FAC Explorer

Finding 26118 (2022-001)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-06-11
Audit: 27311
Organization: Accessible Space North, Inc. (MN)
Auditor: Hinrichs & Associates LTD

AI Summary

  • Core Issue: The Project improperly paid $3,663 for expenses related to another project under common management.
  • Impacted Requirements: Payments should only be made for expenses directly related to the Project, as per HUD guidelines.
  • Recommended Follow-Up: Implement a review process for invoices to ensure accurate payments and prevent future errors.

Finding Text

ACCESSIBLE SPACE NORTH, INC. HUD PROJECT NO. 092-11429 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 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 paid the expense of another project under common management. Criteria: The Project should not pay the expense of another project. Effect: The amount of expenses incorrectly paid was $3,663. Context: The Accounts and Note Receivable account was tested at December 31, 2022. No sample was tested. Questioned Costs $3,663 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 pays the correct 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 $3,663 Non-compliance code - R

Corrective Action Plan

ACCESSIBLE SPACE NORTH, INC. HUD PROJECT NO. 092-11429 CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Accessible Space North, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: December 31, 2022 The findings from the December 31, 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 paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it pays the correct amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at 651-645-7271.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Section 223(f) Insured Mortgage $713,009
14.157 Prac Assistance $71,053
14.218 Community Development Block Grants/entitlement Grants $25,000