FAC Explorer

Finding 3974 (2023-001)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2023-12-12
Audit: 6258
Organization: Asi Freeport Senior Housing, Inc. (MN)
Auditor: Hinrichs & Associates LTD

AI Summary

  • Core Issue: The Project overpaid management fees due to incorrect calculations by the management company.
  • Impacted Requirements: Management fees must be calculated using the correct formula to ensure compliance.
  • Recommended Follow-Up: The management company should repay the $1,247 overpayment to the Project promptly.

Finding Text

Findings and Questioned Costs - Major Federal Award Programs Audit DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - FINDING 2023-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project overpaid management fees to the management company. Criteria: The management company should calculate management fees using the correct formula. Effect: The Project's management fee expense is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee percentage for the year needed to be revised. The details and results of the sample are as follows: Population -1, $22,908, Sample - 1, $22,908, Not in Compliance - 1, $22,908, Questioned Costs - $1,247. Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $1,247 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. Questioned Costs - Department of Housing and Urban Development - Questioned Costs $1,247. Non-compliance code - J

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Freeport Senior 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 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 202, ASSISTANCE LISTING NUMBER 14.157 The Project overpaid management fees to the management company. Recommendation: The management company should repay the $1,247 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. If the Department of Housing and Urban Development has questions regarding this plan, please call Les Russo at 847-424-5601.

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $138,408