Finding Text
Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: In progress Universe population status: N/A Sample size information: N/A Statistically valid sample: N/A Name of Federal agency: U.S Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $1,741 Statement of condition #2025-001: During the year ended June 30, 2025, the Property overpaid management fees by $1,741. Criteria: Pursuant to the Project Owner's Certification for Owner-Managed Multifamily Housing Projects (Form HUD-9839-A) Section 1(b), the Agent will manage the project for the term and fee described in Project Owner's/Management Agent's Certification. Effect: The Property is not in compliance with the Project Owner's Certification for Owner-Managed Multifamily Housing Projects. As a result the Property's cash position at Jun 30, 2025 has been reduced by $1,741. Cause: The Agent inadvertently paid fees in excess of fees earned. Recommendation: The Agent should review its calculation of management fees on a monthly basis and compare the calculation to actual cash collections. We recommend that the Agent reimburse the Property $1,741 for the fees prepaid.