Finding 1149068 (2025-001)

-
Requirement
B
Questioned Costs
$1
Year
2025
Accepted
2025-08-05
Audit: 363740
Organization: Asi Freeport, Inc. (MN)

AI Summary

  • Core Issue: The Project overpaid management fees by $755 due to incorrect calculations by the management company.
  • Impacted Requirements: Management fees must align with HUD guidelines to avoid overstatements.
  • Recommended Follow-Up: Ensure the management company reimburses the Project for the overpayment promptly.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees by $755 to the management company. Criteria: Management fees should be calculated according to HUD guidelines. Effect: The Project's management fee is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee charged by the management company was more than the calculated amount. No sample was tested. Questioned Costs - $755; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should reimburse the Project for the $755 overpayment. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fee as soon as possible. Total-Department of Housing and Urban Development -$755; Non-compliance code - J

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $117,824