Finding 12125 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-04-25

AI Summary

  • Core Issue: The project lacks a HUD approved management agreement, which is required for compliance.
  • Impacted Requirements: Payments made may not align with HUD requirements due to the absence of this agreement.
  • Recommended Follow-Up: Management should collaborate with HUD to secure approval for the current management agreement.

Finding Text

Federal agency: U.S. Department of Housing and Urban Development Criteria or specific requirement: Management is required to retain the HUD approved management agreement to ensure payments made are in accordance with HUD requirements. Condition: The Project does not have a HUD approved management agreement. Questioned costs: None Context: Management and HUD were unable to find the HUD approved agreement. Cause: Management did not retain the HUD approved management agreement. Effect: Due to the project not having a HUD approved management agreement, there is a possibility that management fees paid by the project are inaccurate. Repeat Finding: N/A Recommendation: Recommend that management work with HUD to have the current management agreement approved. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Management is required to retain the HUD approved management agreement to ensure payments made are in accordance with HUD requirements. The Project does not have a HUD approved management agreement. Recommendation: Recommend that management work with HUD to have the current management agreement approved. There is no disagreement with the audit finding. Action taken in response to finding: We have contacted HUD to obtain an approved management agreement. Name of the contact person responsible for corrective action: Lisa Gindt Planned completion date for corrective action plan: May 2023 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Lisa Gindt at 651-766-4368.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 588567 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $18.99M