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 minimis cost rate.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Project Based Rental Assistance (PBRA) 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 2024-001: 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.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Project Based Rental Assistance (PBRA) 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 2024-001: 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.