Finding 613206 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-05-09
Audit: 35137
Organization: Asi - Jackson County, Inc. (MN)

AI Summary

  • Core Issue: The Project has not made required monthly deposits of $654 to the reserve for replacements since August 2022.
  • Impacted Requirements: This non-compliance with the regulatory agreement affects the Project's financial standing and could lead to further penalties.
  • Recommended Follow-Up: Ensure the Project deposits the $3,271 shortage by June 30, 2023, and establish a plan to maintain monthly deposits moving forward.

Finding Text

Finding No. 2022-002 ? Section 811 ? CFDA No. 14.181 Type of Finding ? Federal Award Finding Finding Resolution Status ? In progress Criteria or Specific Condition ? The Regulatory Agreement requires the Company to make monthly deposits of $654 to the reserve for replacements. Statement of Condition ? The Project has not made monthly deposits of $654 to the replacement reserve since August 2022. Cause ? The Project did not have sufficient cash flows to make the required deposits. Effect or Potential Effect ? The Project is not in compliance with the regulatory requirements. Auditor Non-Compliance Code ? N ? Reserve for replacements deposits. Questioned Costs ? $3,271 Reporting View of Responsible Officials ? We concur with the auditor?s recommendation. Recommendation ? The Project should deposit the reserve for replacement shortage of $3,271. Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations ? Agree Response Indicator ? Agree Completion Date ? June 30, 2023 Response ? Once the Project starts receiving the subsidy payments, the reserve for replacement deposits will be caught up and made monthly thereafter.

Categories

Questioned Costs HUD Housing Programs Reporting

Other Findings in this Audit

  • 36763 2022-001
    Material Weakness
  • 36764 2022-002
    Material Weakness
  • 613205 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.91M