FAC Explorer

Audit 22034

FY End
2022-06-30
Total Expended
$1.80M
Findings
2
Programs
1
Organization: Communidad Del Retiro (a Project of the Municipality of San Juan) (PR)
Year: 2022 Accepted: 2022-12-20
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25637 2022-001 - - J
602079 2022-001 - - J

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $1.80M Yes 1

Contacts

Name Title Type
EMMTCQXM4K39 Marta Hernandez Auditee
7877818200 Winell Belfonte Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB CircularA-122, "Cost Principles for Non-Profit Organizations" and the cost principles contained in the Uniform Guidance. Comunidad Del Retiro (a Project of the Municipality of San Juan), has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Findings and Questioned Costs - Major Federal Award Program Audit Department of Housing and Urban Development Finding No. 2022-001; Section 8, Assistance Listing 14.195 Criteria During the year ended June 30, 2022, the project paid management fees of $9,652 in excess of the amount approved by HUD. Condition Management fee payments are limited to the amounts determined in accordance with the terms of the management agreement. Cause Management pays fixed monthly fees and trues up these up at year-end to the amount allowed per the agreements with HUD. Due to the large vacancy amount at the project during the year ended June 30, 2022, the calculation resulted in an unusually large overpayment. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned Costs $9,652 Recommendation The management company should reimburse the project for overpaid management fee in the amount of $9,652 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: J - Unauthorized management fees Finding Resolution Status: Cleared Views of Responsible Officials In order to avoid any future overpayment management will proceed to calculate the fee based on the actual monthly collections instead of doing the reconciliation at year-end.
Finding 2022-001
Findings and Questioned Costs - Major Federal Award Program Audit Department of Housing and Urban Development Finding No. 2022-001; Section 8, Assistance Listing 14.195 Criteria During the year ended June 30, 2022, the project paid management fees of $9,652 in excess of the amount approved by HUD. Condition Management fee payments are limited to the amounts determined in accordance with the terms of the management agreement. Cause Management pays fixed monthly fees and trues up these up at year-end to the amount allowed per the agreements with HUD. Due to the large vacancy amount at the project during the year ended June 30, 2022, the calculation resulted in an unusually large overpayment. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned Costs $9,652 Recommendation The management company should reimburse the project for overpaid management fee in the amount of $9,652 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: J - Unauthorized management fees Finding Resolution Status: Cleared Views of Responsible Officials In order to avoid any future overpayment management will proceed to calculate the fee based on the actual monthly collections instead of doing the reconciliation at year-end.