FAC Explorer

Finding 38777 (2022-001)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-02-28
Audit: 37338
Organization: Asi Greeley Ii, Inc. (MN)
Auditor: Hinrichs & Associates LTD

AI Summary

  • Core Issue: The project improperly paid $2,170 for expenses related to another project under common management.
  • Impacted Requirements: Payments should only be made for expenses directly related to the project.
  • Recommended Follow-up: Implement a review process for invoices to ensure correct payments are made.

Finding Text

ASI - GREELEY, INC. HUD PROJECT NO. 101-HD047 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 expense of another project. Effect: The amount of expenses incorrectly paid was $2,170. Context: The Accounts and Note Receivable account was tested at June 30, 2022. No sample was tested. Questioned Costs $2,170 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 $2,170 Non-compliance code - R

Corrective Action Plan

ASI - GREELEY, INC. HUD PROJECT NO. 101-HD047 CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Greeley, 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 $2.92M
14.181 Prac Assistance $73,507