Finding Text
FINDING No. 2025-002: Section 202 - Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Total expenses. Sample Size Information: Management fees. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD, the Project shall only use funds as specified in the Regulatory Agreement and owe the management company fees at the rate specified in the Project Owner’s/Management Agent’s Certification (form HUD-9839-B). Statement of Condition: As a result of an expired form HUD-9839-B, the Project has been overcharged management fees, resulting in an unauthorized loan to the management Company. Cause: The Project’s form HUD-9839-B expired on August 2, 2025, and the management company kept charging the Project. Effect or Potential Effect: The Project has made an unauthorized loan to the management company as a result of overpaying management fees of $17,223. Auditor Non-Compliance Code: J – Unauthorized Management Fees. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor's recommendations will be adopted. Recommendation: The Project should implement procedures to monitor the expiration of all contracts to ensure timely preparation and approval. Response Indicator: Agree. Completion Date: 12/31/2026 Response: Management is in the process of renewing all management certifications and will provide accountants with extra training to monitor.