Finding Text
Criteria Management fee payments are limited to amounts determined in accordance with the terms of the HUD approved management agreement. Condition During the period ended May 20, 2025, the Project paid management fees of $2,955 in excess of the amount approved by HUD. Cause Management inadvertently recorded and paid management fee for receipts that should have been allocated to New Weinberg House. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned Costs $2,955 Identification as a Repeat Finding This is a repeat finding. Recommendations The management company should reimburse the Project for overpaid management fee in the amount of $2,955 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the HUD approved management agreement. Auditor Noncompliance Code: J. Unauthorized management fees View of Responsible Officials Management agrees with the findings and recommendations, management fee transfer was completed on 7/1/25. Finding Resolutions Status: Resolved