Finding 480344 (2023-001)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-08-04
Audit: 316599
Organization: Asi - Reno, Inc. (MN)

AI Summary

  • Core Issue: The replacement reserve cash balance was underfunded by $5,500 as of December 31, 2023.
  • Impacted Requirements: Funds were not deposited back into the replacement reserve account after insurance reimbursement.
  • Recommended Follow-Up: Ensure the Project deposits the $5,500 into the replacement reserve account as agreed by management.

Finding Text

FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at December 31, 2023. Criteria: The Project withdrew funds from the replacement reserve account that were subsequently reimbursed by the insurance company. Effect: The replacement reserve cash balance was $5,500 less than it should be at December 31, 2023. Context: Activity in the replacement reserve account for the year ended December 31, 2023 was tested. No sample was tested. Questioned Costs - $5,500, Cause: The Project failed to deposit funds into the replacement reserve account upon receiving the insurance reimbursement. Recommendation: The Project should deposit $5,500 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $5,500 into the replacement reserve account. Total-Department of Housing and Urban Development - $5,500; Non-compliance code - N

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI-Reno, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2023. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: December 31, 2023 The findings from the December 31, 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 The Project withdrew funds from the replacement reserve account that were subsequently reimbursed by the insurance company. Recommendation: The Project should deposit $5,500 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management will deposit $5,500 into the replacement reserve account. 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 Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $94,616