Finding reference number: #2022-001
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
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 information is not applicable to the finding.
Noncompliance information: See statement of condition #2022-001 for noncompliance information.
Statically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $8,680
Statement of condition #2022-001: From the period of January 1, 2022 through December 31, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the Regulatory Agreement and HUD Handbook 4381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: December 31, 2023
Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: #2022-002
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
Auditor non-compliance code: A - Unauthorized withdrawal from replacement reserve
Finding resolution status: Cleared
Universe population size: 5 invoices included in withdrawals from the reserve for replacements.
Sample size information: 2 invoices
Noncompliance information: See statement of condition #2022-002 for noncompliance information.
Statically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $288
Statement of condition #2022-002: The Corporation withdrew funds from the reserve for replacement in excess of actual costs incurred.
Criteria: Pursuant to HUD regulations, funds withdrawn from the reserve for replacements shall be used only for the work indicated on the request.
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $288.
Cause: The Property received advanced approval from HUD to withdrawal funds from the reserve for replacements based on quotes received from a vendor. When the final invoice was received, the total cost was $288 less than the amount withdrawn from the reserve for replacements.
Recommendation: Management should return $288 to the reserve for replacements.
Completion date: July 28, 2023
Management Response: Agree. Management returned $288 to the reserve for replacements on July 28, 2023.
Finding reference number: #2022-001
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
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 information is not applicable to the finding.
Noncompliance information: See statement of condition #2022-001 for noncompliance information.
Statically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $8,680
Statement of condition #2022-001: From the period of January 1, 2022 through December 31, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the Regulatory Agreement and HUD Handbook 4381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: December 31, 2023
Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: #2022-002
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
Auditor non-compliance code: A - Unauthorized withdrawal from replacement reserve
Finding resolution status: Cleared
Universe population size: 5 invoices included in withdrawals from the reserve for replacements.
Sample size information: 2 invoices
Noncompliance information: See statement of condition #2022-002 for noncompliance information.
Statically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $288
Statement of condition #2022-002: The Corporation withdrew funds from the reserve for replacement in excess of actual costs incurred.
Criteria: Pursuant to HUD regulations, funds withdrawn from the reserve for replacements shall be used only for the work indicated on the request.
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $288.
Cause: The Property received advanced approval from HUD to withdrawal funds from the reserve for replacements based on quotes received from a vendor. When the final invoice was received, the total cost was $288 less than the amount withdrawn from the reserve for replacements.
Recommendation: Management should return $288 to the reserve for replacements.
Completion date: July 28, 2023
Management Response: Agree. Management returned $288 to the reserve for replacements on July 28, 2023.
Finding reference number: #2022-001
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
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 information is not applicable to the finding.
Noncompliance information: See statement of condition #2022-001 for noncompliance information.
Statically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $8,680
Statement of condition #2022-001: From the period of January 1, 2022 through December 31, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the Regulatory Agreement and HUD Handbook 4381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: December 31, 2023
Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: #2022-002
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
Auditor non-compliance code: A - Unauthorized withdrawal from replacement reserve
Finding resolution status: Cleared
Universe population size: 5 invoices included in withdrawals from the reserve for replacements.
Sample size information: 2 invoices
Noncompliance information: See statement of condition #2022-002 for noncompliance information.
Statically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $288
Statement of condition #2022-002: The Corporation withdrew funds from the reserve for replacement in excess of actual costs incurred.
Criteria: Pursuant to HUD regulations, funds withdrawn from the reserve for replacements shall be used only for the work indicated on the request.
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $288.
Cause: The Property received advanced approval from HUD to withdrawal funds from the reserve for replacements based on quotes received from a vendor. When the final invoice was received, the total cost was $288 less than the amount withdrawn from the reserve for replacements.
Recommendation: Management should return $288 to the reserve for replacements.
Completion date: July 28, 2023
Management Response: Agree. Management returned $288 to the reserve for replacements on July 28, 2023.
Finding reference number: #2022-001
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
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 information is not applicable to the finding.
Noncompliance information: See statement of condition #2022-001 for noncompliance information.
Statically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $8,680
Statement of condition #2022-001: From the period of January 1, 2022 through December 31, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the Regulatory Agreement and HUD Handbook 4381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: December 31, 2023
Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: #2022-002
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
Auditor non-compliance code: A - Unauthorized withdrawal from replacement reserve
Finding resolution status: Cleared
Universe population size: 5 invoices included in withdrawals from the reserve for replacements.
Sample size information: 2 invoices
Noncompliance information: See statement of condition #2022-002 for noncompliance information.
Statically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $288
Statement of condition #2022-002: The Corporation withdrew funds from the reserve for replacement in excess of actual costs incurred.
Criteria: Pursuant to HUD regulations, funds withdrawn from the reserve for replacements shall be used only for the work indicated on the request.
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $288.
Cause: The Property received advanced approval from HUD to withdrawal funds from the reserve for replacements based on quotes received from a vendor. When the final invoice was received, the total cost was $288 less than the amount withdrawn from the reserve for replacements.
Recommendation: Management should return $288 to the reserve for replacements.
Completion date: July 28, 2023
Management Response: Agree. Management returned $288 to the reserve for replacements on July 28, 2023.