Finding 486147 (2024-001)

-
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2024-09-09

AI Summary

  • Core Issue: The Project overpaid management fees by $809 due to a mathematical error in the calculation.
  • Impacted Requirements: Management fees must align with HUD guidelines to avoid overpayments.
  • Recommended Follow-Up: The management company should reimburse the Project for the overpaid amount and ensure staff are reminded to double-check calculations.

Finding Text

FINDING 2024-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project overpaid management fees by $809. Criteria: Management fees should be calculated according to HUD guidelines. Effect: The Project's management fee is higher than it should be. Context: The management fee calculation was tested at March 31, 2024. No sample was tested. Questioned Costs $809, Cause: There was a mathematical error in the management fee calculation. Recommendation: The management company should reimburse the Project for the $809 overpayment. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounting staff will be reminded to be careful when calculating management fees. Total-Department of Housing and Urban Development - $809, Non-compliance code - J

Corrective Action Plan

Hudson Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2024. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd., 1000 Shelard Parkway, Suite 110, Minneapolis, MN 55426 Audit Period: March 31, 2024; The findings from the March 31, 2024 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 2024-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 The Project overpaid management fees by $809. Recommendation: The management company should reimburse the Project for the $809 overpayment. Action Taken: The Project agrees with the finding. The accounting staff will be reminded to be careful when calculating management fees. 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
14.157 Supportive Housing for the Elderly $99,903