Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Department of Housing and Urban Development requires management fees to be charged based on the contract. Condition: Upon performing recalculation of the management fee, we noted that the amount being charged was 6.5% rather than the agreed upon rate of 6.18%. Questioned Costs: $574 Context: The amount charged for management fees was higher than the agreed upon amount, therefore resulting in the program being improperly charged. Cause: This was an oversight by management. Effect: Improperly charging the program Repeat Finding: No Recommendation: We recommend that management review the rates used to calculate management fees to ensure that they agree to the agreed upon percentages outlined in the agreement. Views of Responsible Officials: There is no disagreement with the audit finding.