FAC Explorer

Finding 38770 (2022-001)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-02-28
Audit: 35468
Organization: Henderson Supportive Housing, Inc. (MN)
Auditor: Hinrichs & Associates LTD

AI Summary

  • Core Issue: The project improperly paid $698 in expenses for another project managed by the same organization.
  • Impacted Requirements: Payments should only be made for expenses directly related to the project, not for other projects.
  • Recommended Follow-up: Implement a review process for invoices to ensure accurate payments and prevent future errors.

Finding Text

HENDERSON SUPPORTIVE HOUSING, INC. HUD PROJECT NO. 125-HD074 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 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 $698. Context: The Accounts and Note Receivable account was tested at June 30, 2022. No sample was tested. Questioned Costs $698 Cause: The Project mistakenly paid an invoice of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it pays the correct 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 $698 Non-compliance code - R

Corrective Action Plan

HENDERSON SUPPORTIVE HOUSING, INC. HUD PROJECT NO. 125-HD074 CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Henderson Supportive Housing, 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 paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it pays the correct amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. 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 $4.10M
14.239 Home Investment Partnerships Program $1.00M
14.181 Prac Assistance $108,393