Finding Text
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.