Finding 1169765 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-01-20

AI Summary

  • Core Issue: The Project overpaid management fees by $64 due to incorrect calculations by the management company.
  • Impacted Requirements: Management fees must comply with HUD guidelines to ensure accurate billing.
  • Recommended Follow-Up: The management company should reimburse the Project for the overpayment promptly.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 223(f), Assistance Listing Number 14.155 Condition: The Project overpaid management fees by $64 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 - Number N/A, $ 23,700; Sample - Number - N/A, $23,700; Not in Compliance - Number - N/A, $64; Questioned Costs - $64; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should reimburse the Project for the $64 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 - $64; Non-compliance code - J

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT RCIL - Olmsted Barrier Free Housing Corporation respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2025 The finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT None; FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 223(f), Assistance Listing Number 14.155 Condition: The Project overpaid management fees to the management company. Recommendation: The management company should reimburse the Project for the $64 overpayment. Action Taken: The Project agrees with the finding. The management company repaid the Project in November 2025. If the Department of Housing and Urban Development has questions regarding this plan, please call Sarah Rosser at 952-876-9213.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.77M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $245,425