Finding 559738 (2024-001)

-
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-05-06
Audit: 355648
Organization: Asi - St. Cloud, Inc. (MN)

AI Summary

  • Core Issue: A cash disbursement of $212 was incorrectly paid for another project, violating compliance rules.
  • Impacted Requirements: Projects must only pay their own expenses, not those of other projects under common management.
  • Recommended Follow-up: Review and verify invoices before payment to ensure compliance; accounts payable staff will receive reminders to prevent future errors.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 25 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 $212 out of a total sample of disbursements of $26,259. Context: A sample of disbursements was selected for testing of compliance. The test found one disbursement that was not in compliance. The non compliances had a financial effect outlined below. The details and results of the sample are as follows: Population - 179, $222,704; Sample-25, $26,259; Not in Compliance -1, $212; Questioned Costs - $212; 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 -$212; Non-compliance code - R

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 In 1 of 25 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 October 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 $100,937