Finding 26202 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-02-28
Audit: 27803
Organization: Asi - Anoka County, Inc. (MN)

AI Summary

  • Core Issue: The replacement reserve cash balance was underfunded by $1,375 due to duplicate withdrawals for the same invoice.
  • Impacted Requirements: Compliance with HUD guidelines regarding proper management of replacement reserve funds.
  • Recommended Follow-Up: The Project should repay the $1,375 to the replacement reserve account to correct the error.

Finding Text

ASI - ANOKA COUNTY, INC. HUD PROJECT NO. 092-HD029-WPD 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 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at June 30, 2022. Criteria: The Project made two replacement reserve withdrawals for the same invoice. Effect: The replacement reserve cash balance was $1,375 less than it should be at June 30, 2022. Context: Activity in the replacement reserve account for the year ended June 30, 2022 was tested. No sample was tested. Questioned costs $1,375 Cause: The Project mistakenly made two replacement reserve withdrawals for the same invoice. Recommendation: The Project should repay the amount improperly withdrawn from the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $1,375 into the replacement reserve account. Questioned Costs - Department of Housing and Urban Development $1,375 Non-compliance code - A

Corrective Action Plan

ASI - ANOKA COUNTY, INC. HUD PROJECT NO. 092-HD029-WPD CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Anoka County, 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 finding from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number 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 811, ASSISTANCE LISTING NUMBER 14.181 The Project made two replacement reserve withdrawals for the same invoice. Recommendation: The Project should repay the amount improperly withdrawn from the replacement reserve account. Action Taken: The Project agrees with the finding. Management will deposit $1,375 into the replacement reserve account. If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at 651-846-1057.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Section 811 Capital Advance $851,000
14.181 Prac Assistance $63,315