Audit 361607

Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2025) Auditor non-compliance code: J-Unauthorized management fees Finding resolution status: Unresolved. Universe population size: Not applicable. Sample size information: Not applicable. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable. Questioned costs: $2,480 Statement of condition 2025-001: During the year ended March 31, 2025, the Corporation paid management fees of $2,480 in excess of amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 5.93% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 202 Regulatory Agreement. Cause: The Agent inadvertently charged a management fee percentage of 7.52% instead of 5.93% 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 $2,480 for the overpaid management fees. Management's response: Management concurs with the recommendation.

Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2025) Auditor non-compliance code: J-Unauthorized management fees Finding resolution status: Unresolved. Universe population size: Not applicable. Sample size information: Not applicable. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable. Questioned costs: $2,480 Statement of condition 2025-001: During the year ended March 31, 2025, the Corporation paid management fees of $2,480 in excess of amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 5.93% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 202 Regulatory Agreement. Cause: The Agent inadvertently charged a management fee percentage of 7.52% instead of 5.93% 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 $2,480 for the overpaid management fees. Management's response: Management concurs with the recommendation.

Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2025) Auditor non-compliance code: J-Unauthorized management fees Finding resolution status: Unresolved. Universe population size: Not applicable. Sample size information: Not applicable. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable. Questioned costs: $2,480 Statement of condition 2025-001: During the year ended March 31, 2025, the Corporation paid management fees of $2,480 in excess of amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 5.93% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 202 Regulatory Agreement. Cause: The Agent inadvertently charged a management fee percentage of 7.52% instead of 5.93% 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 $2,480 for the overpaid management fees. Management's response: Management concurs with the recommendation.

Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2025) Auditor non-compliance code: J-Unauthorized management fees Finding resolution status: Unresolved. Universe population size: Not applicable. Sample size information: Not applicable. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable. Questioned costs: $2,480 Statement of condition 2025-001: During the year ended March 31, 2025, the Corporation paid management fees of $2,480 in excess of amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 5.93% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 202 Regulatory Agreement. Cause: The Agent inadvertently charged a management fee percentage of 7.52% instead of 5.93% 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 $2,480 for the overpaid management fees. Management's response: Management concurs with the recommendation.