Finding 369530 (2023-001)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-02-16

AI Summary

  • Core Issue: A tenant file had a mathematical error in calculating household income, affecting the tenant's share of rent.
  • Impacted Requirements: Accurate computation of household income based on tenant-provided information is essential for compliance.
  • Recommended Follow-Up: Recompute the HUD subsidy and tenant rent for the affected tenant and adjust future monthly HUD billing.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Criteria: Household income should be computed accurately based on information provided by the tenant. Effect: There is no financial effect. Context: A sample of tenant files was selected for testing household income in the process of computing the tenant share of monthly rent. The test found a calculation that was not in compliance. The non-compliance did not have a financial effect. The details and results of the sample are as follows: Population - 19, Dollars - N/A, Sample - 2, Dollars - N/A, Not in Compliance - 1, Dollars - $156, Questioned Costs - $156. Cause: There was an error in interpreting some information provided by the tenant during the certification process. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Tenant rent will be recomputed and management will adjust a future monthly HUD billing. Total-Department of Housing and Urban Development - $156 Questioned Costs. Non-compliance code: R

Corrective Action Plan

Shakopee Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023: Name and address of independent public accounting firm: Hinrichs & Associates, LTD. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2023 The finding from the June 30, 2023 schedule of findings and questioned costs is discussed below. The finding is 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 2023-001: SECTION 811, FEDERAL ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing. Project managers should be aware of the importance of computing the tenant's household income correctly. Action taken: The Project agrees with the finding. Tenant rent was recomputed in July 2023 and management will adjust the September 2023 HUD billing. 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 Supportive Housing for Persons with Disabilities $103,543