Finding Text
FINDING 2024-001: Unauthorized fees paid by the Corporation Condition - A project wholly-owned by the Corporation (the Project) paid the management company of the Project a bookkeeping fee that was not authorized by HUD. Criteria - The Project must obtain approval from HUD to pay fees outside of the previously approved management fee. Effect - The Project paid the management company a bookkeeping fee that may constitute an unauthorized distribution. Cause - The management company charged a bookkeeping fee in the amount of $2,376 to the Project prior to the fee being approved by HUD. Recommendation 2024-001 - We recommend that management contact HUD to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - Management has contacted HUD and is awaiting a response.