Finding 513871 (2024-001)

-
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2024-12-11
Audit: 331887
Organization: Asi - Anoka County, Inc. (MN)

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 accurate expense reporting.
  • Recommended Follow-up: The management company should repay the $246 overpayment to the Project promptly.

Finding Text

C. Findings and Questioned Costs - Major Federal Award Programs Audit DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 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. Through testing, it was determined that the total cash receipts number used to calculate management fee was overstated. The details and results of the sample are as follows: Population - N/A, $8,761; Sample - N/A, $8,761; Not in Compliance - N/A, $8,761; Questioned Costs - $246. Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $246 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the management fee overpayment as soon as possible. Total-Department of Housing and Urban Development - $246; Non-compliance code - J

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI Anoka County, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit period: June 30, 2024 The finding from the June 30, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number 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 811, ASSISTANCE LISTING NUMBER 14.181 The Project overpaid management fees to the management company. Recommendation: The management company should repay the $246 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 Ling Han at 651-757-3038.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $75,546