Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Corporation has elected to not use the 10% de minmis cost rate.
Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Payments Contract CFDA No. 14.195 (HAP Contract No. TN40-0020-01 and 2016) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: In process 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. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-001: The Corporation did not obtain a HUD approved Project Owner's/Management Agent's Certification (Form HUD-9839-B) and the Property paid unapproved management fees to the Agent. Criteria: The HUD Management Agent Handbook and Chapter 3 requires the management agent to have a HUD approved Project Owner's/Management Agent's Certification in order to manage the Property. Effect: The Corporation is not in compliance with the HAP Contract. Cause: The previous Project Owner's/Management Agent's Certification expired on December 31, 2015 and an updated certification was not submitted to HUD for review and approval to extend the term. Recommendation: The Agent should submit an updated Project Owner's/Management Agent's Certification for HUD's review and approval. Management's response: Management concurs with the finding and recommendation, and the Agent will submit an updated Project Owner's/Management Agent's Certification for HUD's review and approval.
Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Payments Contract CFDA No. 14.195 (HAP Contract No. TN40-0020-01 and 2016) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: In process 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. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-001: The Corporation did not obtain a HUD approved Project Owner's/Management Agent's Certification (Form HUD-9839-B) and the Property paid unapproved management fees to the Agent. Criteria: The HUD Management Agent Handbook and Chapter 3 requires the management agent to have a HUD approved Project Owner's/Management Agent's Certification in order to manage the Property. Effect: The Corporation is not in compliance with the HAP Contract. Cause: The previous Project Owner's/Management Agent's Certification expired on December 31, 2015 and an updated certification was not submitted to HUD for review and approval to extend the term. Recommendation: The Agent should submit an updated Project Owner's/Management Agent's Certification for HUD's review and approval. Management's response: Management concurs with the finding and recommendation, and the Agent will submit an updated Project Owner's/Management Agent's Certification for HUD's review and approval.