Finding Text
FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees to the management company. Criteria: The management company should calculate management fees using the correct formula. Effect: The Project's management fee expense is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee percentage for the year needed to be revised. The details and results of the sample are as follows: Population - 1, $32,454; Sample - 1, $32,454; Not in Compliance - 1, $32,454; Questioned Costs $120; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $120 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. Questioned Costs - Department of Housing and Urban Development $120; Non-compliance code - J