Finding 520319 (2024-001)

-
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-01-27
Audit: 340032
Organization: Rose Court (MN)

AI Summary

  • Core Issue: The replacement reserve cash balance was underfunded by $85 as of September 30, 2024.
  • Impacted Requirements: Monthly deposits into the reserve account were not made correctly by the management company.
  • Recommended Follow-up: The Project should promptly deposit the $85 to correct the underfunding.

Finding Text

FINDING 2024-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's replacement reserve cash balance was underfunded at September 30, 2024. Criteria: The management company failed to make the correct monthly deposits into the account. Effect: The replacement reserve cash balance was $85 less than it should be at September 30, 2024. Context: Activity in the replacement reserve account for the year ended September 30, 2024 was tested. No sample was tested. Questioned Costs - $85, Cause: The management company failed to increase the monthly deposit amount during the correct month. Recommendation: The Project should deposit $85 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $85 into the replacement reserve account as soon as possible. Questioned Costs - Department of Housing and Urban Development - $85, Non-compliance code - N

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Rose Court respectfully submits the following corrective action plan for the year ended September 30, 2024. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2024 The finding from the September 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 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's replacement reserve cash balance was underfunded at September 30, 2024. Recommendation: The Project should deposit $85 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management will deposit $85 into the replacement reserve in December 2024. If the Department of Housing and Urban Development has questions regarding this plan, please call Craig Ritter at 320-302-0192.

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $897,600
14.871 Section 8 Housing Choice Vouchers $48,788