Finding Text
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 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. Through testing, it was determined that the total cash receipts number used to calculate management fee was overstated. The details and results of the sample are as follows: Population - Number -N/A, $45,648; Sample - Number N/A, $45,648; Not in Compliance -Number N/A, $45,648; Questioned Costs - $388; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $388 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the management fee overpayment as soon as possible. Total-Department of Housing and Urban Development - $388. Non-compliance code - J