FAC Explorer

Finding 369616 (2023-001)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-02-16
Audit: 290995
Organization: Asi - Brainerd, Inc. (MN)
Auditor: Hinrichs & Associates LTD

AI Summary

  • Core Issue: A payment of $552 was made for expenses related to another project, which is against compliance rules.
  • Impacted Requirements: The Project must ensure that it only pays expenses directly related to its own operations.
  • Recommended Follow-Up: Review and verify invoices before payment to prevent future errors; accounts payable staff will receive reminders on compliance.

Finding Text

C. Findings and Questioned Costs - Major Federal Award Programs Audit DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Criteria: The Project should not pay the expenses of another project. Effect: The amount of expenses incorrectly paid was $552 out of a total sample of disbursements of $19,751. 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 - 217, $224,695, Sample - 25, $19,751, Not in Compliance - 1, $552, Questioned Costs - $552. Cause: The Project mistakenly paid part of an invoice of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. Total-Department of Housing and Urban Development - $552, Non-compliance code - R

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Brainerd, 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 In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. The finding was corrected in June 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 $104,051