Finding Text
C. Findings and Questioned Costs - Major Federal Award Programs Audit DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees to the management company. Criteria: The management company should calculate management fees according to HUD guidelines. Effect: The Project's management fee expense is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee calculation had a mathematical error. The details and results of the sample are as follows: Population - 1, $24,187, Sample - 1, $24,187, Not in Compliance - 1, $24,187, Questioned Costs - $1,469, Cause: The management company made a mathematical error in computing management fees. Recommendation: The management company should recompute management fees, and make the necessary adjustments. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will recompute management fees for the year. Any overpayments will be refunded to the project. The finance team will be reminded to calculate management fees according to HUD guidelines. Questioned Costs - Department of Housing and Urban Development - $1,469, Non-compliance code - J