Finding 369615 (2023-001)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-02-16
Audit: 290994
Organization: Asi - Clark County, Inc. (MN)

AI Summary

  • Core Issue: A check intended for a vendor was mistakenly deposited by the management company.
  • Impacted Requirements: Checks must be sent directly to vendors to ensure compliance.
  • Recommended Follow-Up: The management company should reimburse the Project for the $191 check, and staff will be reminded to follow proper procedures.

Finding Text

FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 25 cash disbursements tested, the Project's management company deposited one of the Project's checks into their account that was intended for a vendor. Criteria: The Project should ensure checks are being sent directly to the vendor. Effect: The amount of the check incorrectly deposited by the management company was $191 out of a total sample of disbursements of $15,654. Context: A sample of disbursements was selected for testing of compliance. The test found one disbursement that was not in compliance. The non compliance had a financial effect outlined below. The details and results of the sample are as follows: Population - 242, $279,157 Sample - 25, $15,654 Not in Compliance -1, $191, Questioned Costs - $191 Cause: The Project's management company mistakenly deposited one of the Project's checks that was intended for a vendor. Recommendation: The Project should ensure checks are being sent directly to the vendor. The management company should reimburse the Project for the incorrectly deposited check. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounts payable staff will be reminded to send checks directly to the vendor. Total-Department of Housing and Urban Development - $191. Non-compliance code - R

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Clark County, 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 findings from the June 30, 2023 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 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project's management company deposited one of the Project's checks into their account that was intended for a vendor. Recommendation: The Project should ensure checks are being sent directly to the vendor. The management company should reimburse the Project for the check that was incorrectly deposited. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. The management company reimbursed the Project in August 2023. 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 $128,993