Finding 36816 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-02-28
Audit: 36126
Organization: Asi Kansas City, Inc. (MN)

AI Summary

  • Core Issue: The replacement reserve cash balance was underfunded by $8,800 due to missed deposits.
  • Impacted Requirements: The Project failed to make three months of required deposits into the HUD replacement reserve account.
  • Recommended Follow-up: Ensure the $8,800 has been deposited and implement checks to prevent future missed deposits.

Finding Text

ASI KANSAS CITY, INC. HUD PROJECT NO. 084-HD054 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 did not make three months of HUD required deposits into its replacement for reserve account. Effect: The replacement reserve cash balance was $8,800 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 $8,800 Cause: The Project's monthly automatic deposit into its replacement reserve account was inadvertently stopped, resulting in missed deposits for three months. Recommendation: The Project should deposit $8,800 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management deposited $8,800 to the replacement reserve account in July 2022 when it realized the oversight. Questioned Costs - Department of Housing and Urban Development $8,800 Non-compliance code - N

Corrective Action Plan

ASI KANSAS CITY, INC. HUD PROJECT NO. 084-HD054 CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI Kansas City, 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 811, ASSISTANCE LISTING NUMBER 14.181 The Project did not make three months of HUD required deposits into its replacement for reserve account. Recommendation: The Project should deposit $8,800 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $8,800 into the replacement reserve account in July 2022 when it realized the error. 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
14.181 Section 811 Capital Advance $3.41M
14.181 Prac Assistance $154,173