Finding Text
Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities (Assistance Listing No. 14.181, year 2025) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $1,675 Statement of condition #2025-001: The Corporation paid management fees of $1,675 in excess of the amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD-9839-B) provides for the payment of management fees equal to 6.97% of residential and miscellaneous income collected. Effect: The Corporation is not in compliance with the HUD approved management agent certification and Section 811 Regulatory Agreement. Cause: The Agent inadvertently paid management fees of $1,675 in excess of the amount approved by HUD. Recommendation: The Agent should review the percentage fee used for management fees on a monthly basis to ensure there were no changes to the management certifications. Additionally, the Agent should reimburse the Corporation $1,675 for the overpaid management fees. Management's response: Agree.