Finding Text
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-002, SECTION 223(a)(7), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project overpaid management fees by $235 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. Population - $38,342; Sample - $38,342; Not in Compliance - $235; Questioned Costs - $235; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should reimburse the Project for the $235 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 - $235; Non-compliance code - J