Finding 559735 (2024-001)

-
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-05-06

AI Summary

  • Core Issue: One payment of $2,903 was made incorrectly for another project under common management.
  • Impacted Requirements: The Project must not pay expenses for other projects, ensuring compliance with funding criteria.
  • Recommended Follow-Up: Review and verify invoices before payment to prevent future errors; accounts payable staff will receive reminders about proper procedures.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 35 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 the expense incorrectly paid was $2,903 out of a total sample of disbursements of $65,998. 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 - 229, $223,414; Sample - 35, $65,998; Not in Compliance - 1, $2,903; Questioned Costs - $2,903; Cause: The Project mistakenly paid the 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 $2,903; Non-compliance code - R

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Memphis Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: December 31, 2024 The finding from the December 31, 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 In 1 of 35 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 December 2024. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

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 $141,775