Finding 29971 (2022-001)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-06-05
Audit: 36206
Organization: Rose Court (MN)

AI Summary

  • Core Issue: The Project's residual receipt reserve was underfunded by $227 as of September 30, 2022.
  • Impacted Requirements: Failure to make the required deposit for the surplus cash calculation for the previous year.
  • Recommended Follow-Up: Ensure timely deposits to the residual receipt reserve; management has already corrected this by depositing the amount in November 2022.

Finding Text

ROSE COURT HUD PROJECT NO. 092-EE009 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 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's residual receipt reserve cash balance was underfunded by $227 at September 30, 2022. Criteria: The Project failed to make the residual receipt reserve deposit relating to the surplus cash calculation for the year ended September 30, 2021. Effect: The Project's residual receipt reserve cash balance was underfunded by $227. Context: Activity in the residual receipt reserve account for the year ended September 30, 2022 was tested. No sample was tested. Questioned Costs $227 Cause: The management company forgot to make the required residual receipt reserve deposit. Recommendation: The Project should deposit $227 into the residual receipt reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management deposited $227 into the residual receipt reserve account in November 2022. Questioned Costs - Department of Housing and Urban Development $227 Non-compliance code - B

Corrective Action Plan

ROSE COURT HUD PROJECT NO. 092-EE009 CORRECTIVE ACTION PLANS YEAR ENDED SEPTEMBER 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Rose Court respectfully submits the following corrective action plans 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 202, ASSISTANCE LISTING NUMBER 14.157 The Project's residual receipt reserve cash balance was underfunded by $227 at September 30, 2022. Recommendation: The Project should deposit $227 into the residual receipt reserve account. Action Taken: The Project agrees with the finding. Management will deposit the $227 to the residual receipt reserve. The finding was corrected in November 2022. If the Department of Housing and Urban Development has questions regarding these plans, please call Craig Ritter at 320-302-0192.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Section 202 Capital Advance $897,600
14.871 Section 8 Housing Assistance Payments $48,842