Finding Text
Finding #2023-001: Section 202 Capital Advance, Assistance Listing 14.157
Condition: The Company paid management fees during 2021 and 2022 in excess of
the maximum amount of management fees approved by HUD.
Criteria: The Company’s property management fees must follow the HUD
approved management agreement.
Effect: The Company overpaid property management fees in 2021 and 2022.
Questioned Cost: $6,719
Cause: Oversight
Repeat Finding: No
Recommendation: The Company should monitor property management fees to ensure the
management fees follow the terms set forth in the property management
agreement.
Auditor’s Comment:
We recommend the Company reduce current management fees by
$6,719 during 2023 to account for excess management