Audit 17470

Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Section 811 loan identification number 054-HD106, year 2022) Auditor non-compliance code: J ? Unauthorized management fees Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2022-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $665 Repeat Finding: No. Statement of condition #2022-001: The Corporation paid management fees of $665 in excess of the amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 7.3% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 811 Regulatory Agreement. Cause: The Agent inadvertently charged a management fee percentage of 8.23% instead of 7.3% of cash collections and miscellaneous income collected. Recommendation: The Agent should review the percentage fee used for management fees on a monthly basis to ensure there were no changes to the management certifications (Form HUD-9839-B). Additionally, the Agent should reimburse the Corporation $665 for the overpaid management fees. Completion date: September 30, 2023 Management's response: Agree.

Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Section 811 loan identification number 054-HD106, year 2022) Auditor non-compliance code: J ? Unauthorized management fees Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2022-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $665 Repeat Finding: No. Statement of condition #2022-001: The Corporation paid management fees of $665 in excess of the amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 7.3% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 811 Regulatory Agreement. Cause: The Agent inadvertently charged a management fee percentage of 8.23% instead of 7.3% of cash collections and miscellaneous income collected. Recommendation: The Agent should review the percentage fee used for management fees on a monthly basis to ensure there were no changes to the management certifications (Form HUD-9839-B). Additionally, the Agent should reimburse the Corporation $665 for the overpaid management fees. Completion date: September 30, 2023 Management's response: Agree.

Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Section 811 loan identification number 054-HD106, year 2022) Auditor non-compliance code: J ? Unauthorized management fees Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2022-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $665 Repeat Finding: No. Statement of condition #2022-001: The Corporation paid management fees of $665 in excess of the amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 7.3% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 811 Regulatory Agreement. Cause: The Agent inadvertently charged a management fee percentage of 8.23% instead of 7.3% of cash collections and miscellaneous income collected. Recommendation: The Agent should review the percentage fee used for management fees on a monthly basis to ensure there were no changes to the management certifications (Form HUD-9839-B). Additionally, the Agent should reimburse the Corporation $665 for the overpaid management fees. Completion date: September 30, 2023 Management's response: Agree.

Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Section 811 loan identification number 054-HD106, year 2022) Auditor non-compliance code: J ? Unauthorized management fees Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2022-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $665 Repeat Finding: No. Statement of condition #2022-001: The Corporation paid management fees of $665 in excess of the amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 7.3% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 811 Regulatory Agreement. Cause: The Agent inadvertently charged a management fee percentage of 8.23% instead of 7.3% of cash collections and miscellaneous income collected. Recommendation: The Agent should review the percentage fee used for management fees on a monthly basis to ensure there were no changes to the management certifications (Form HUD-9839-B). Additionally, the Agent should reimburse the Corporation $665 for the overpaid management fees. Completion date: September 30, 2023 Management's response: Agree.