Finding 480341 (2023-002)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-08-04
Audit: 316560
Organization: Asi - Minot, Inc. (MN)

AI Summary

  • Issue: One out of 25 cash disbursements incorrectly paid $125 for another project’s expenses.
  • Requirements Impacted: Projects should not cover expenses for other projects under common management.
  • Recommended Follow-Up: Review invoices carefully before payment to ensure compliance; accounts payable staff will receive reminders.

Finding Text

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 $125 out of a total sample of disbursements of $11,561. 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 - 239, $155,379; Sample - 25, $11,561; Not in Compliance - 1, $125; Questioned Costs - $125. 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 - $125. Non-compliance code - R.

Corrective Action Plan

Condition: 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 January 2024. If the Department of Housing and Urban Development has questions regarding these plans, please call Chuck Reuter at 651-645-7271.

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $99,716