Finding 572626 (2025-001)

-
Requirement
B
Questioned Costs
$1
Year
2025
Accepted
2025-08-05
Audit: 363740
Organization: Asi Freeport, Inc. (MN)

AI Summary

  • Core Issue: The Project overpaid management fees by $755 due to incorrect calculations by the management company.
  • Impacted Requirements: Management fees must align with HUD guidelines to avoid overstatements.
  • Recommended Follow-Up: Ensure the management company reimburses the Project for the overpayment promptly.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees by $755 to the management company. Criteria: Management fees should be calculated according to HUD guidelines. Effect: The Project's management fee is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee charged by the management company was more than the calculated amount. No sample was tested. Questioned Costs - $755; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should reimburse the Project for the $755 overpayment. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fee as soon as possible. Total-Department of Housing and Urban Development -$755; Non-compliance code - J

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI Freeport, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2025. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: March 31, 2025. The finding from the March 31, 2025 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 - FEDERAL AWARD PROGRAMS AUDIT - FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project overpaid management fees to the management company. Recommendation: The management company should reimburse the Project for the $755 overpayment. Action Taken: The Project agrees with the finding. The management company will repay the overpaid management fee as soon as possible. If the Department of Housing and Urban Development has questions regarding this plan, please call Les Russo at 847-424-5601.

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 $117,824