Finding 1140254 (2023-001)

Finding reference number: #2023-001 Assistance Listing title and number (federal award identification number and year): Housing Finance Agencies (HFA) Risk Sharing No. 14.188 (101-98145 and 2015) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: Cleared 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. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $8,370 Statement of condition #2023-001: For the year ended October 31, 2023, the Corporation paid management fees to the Agent in excess of the fees earned resulting in prepaid management fees of $8,370 at October 31, 2023. Criteria: The HUD approved management certification provides for the payment of management fees subsequent to collections. Effect or potential effect: The Corporation is not in compliance with the HUD approved management certification and the Corporation’s cash position at October 31, 2023 has been reduced by $8,370. Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion date: October 31, 2024 Management response: The Corporation concurs with the finding and agrees with the auditor’s recommendation.