Finding Text
Section II-Financial Statement Findings Our audit disclosed no findings or questioned costs that are required to be reported. Section III-Federal Award Findings and Questioned Costs Finding reference number: 2025-001 ALN title and number (federal award identification number and year): Supportive Housing for the Elderly, CFDA 14.157 (102-EE029-WAH) Auditor non-compliance code: J – Unauthorized management fee Finding resolution status: Outstanding Universe population size: The universe is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition 2025-001. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $3,118 Statement of condition 2025-001: Management fees of $3,118 were prepaid at May 31, 2025. Criteria: The HUD approved management certification (Form HUD 9839-B) provides the Agent may earn a fee of 12.3% of resident, commercial, and miscellaneous income up to a yield cap of $45 per unit per month. Effect or potential effect: The Corporation is not in compliance with the HUD approved management certification. Cause: The Corporation did not apply the correct yield cap of $45 per unit per month in the monthly management fee calculation. Recommendation: The Agent should reduce management fees charged in the following periods or repay the balance prepaid. Completion Date: N/A Reporting views of responsible officials: Management concurs with the finding recommendation. The Agent will reimburse $3,118 to the Corporation.