Finding 36764 (2022-002)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2023-05-09

Audit: 35137

Organization: Asi - Jackson County, Inc. (MN)

Auditor: Bjorklund & Montplaisir

AI Summary

Core Issue: The Project has not made required monthly deposits of $654 to the reserve for replacements since August 2022.
Impacted Requirements: This non-compliance with the regulatory agreement affects the Project's financial standing and could lead to further penalties.
Recommended Follow-Up: Ensure the Project deposits the $3,271 shortage by June 30, 2023, and establish a plan to maintain monthly deposits moving forward.

Finding Text

Finding No. 2022-002 ? Section 811 ? CFDA No. 14.181 Type of Finding ? Federal Award Finding Finding Resolution Status ? In progress Criteria or Specific Condition ? The Regulatory Agreement requires the Company to make monthly deposits of $654 to the reserve for replacements. Statement of Condition ? The Project has not made monthly deposits of $654 to the replacement reserve since August 2022. Cause ? The Project did not have sufficient cash flows to make the required deposits. Effect or Potential Effect ? The Project is not in compliance with the regulatory requirements. Auditor Non-Compliance Code ? N ? Reserve for replacements deposits. Questioned Costs ? $3,271 Reporting View of Responsible Officials ? We concur with the auditor?s recommendation. Recommendation ? The Project should deposit the reserve for replacement shortage of $3,271. Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations ? Agree Response Indicator ? Agree Completion Date ? June 30, 2023 Response ? Once the Project starts receiving the subsidy payments, the reserve for replacement deposits will be caught up and made monthly thereafter.

Corrective Action Plan

ASI - JACKSON COUNTY, INC. HUD PROJECT NO. 126-HD028 CORRECTIVE ACTION PLAN Department of Housing and Urban Development ASI-Jackson County, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of Independent Public Accounting Firm: Bjorklund & Montplaisir 1 Lincoln Center, Suite 470 10300 SW Greenburg Road Portland, Oregon 97223 Audit period: January 1, 2022 through 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 number assigned in the schedule. Finding No. 2022-002 - Section 811, CFDA 14.181 Recommendation: The Project should deposit the reserve for replacement shortage of $3,271. Planned Corrective Action: Once the Project starts receiving the subsidy payments, the reserve for replacement deposits will be caught up and made monthly thereafter. Anticipated Date of Completion: June 30, 2023 If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at (651) 645-7271. Sincerely, 04/26/23 Chuck Reuter Date

Other Findings in this Audit

36763 2022-001

Material Weakness
613205 2022-001

Material Weakness
613206 2022-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$1.91M