Finding Text
FINDING 2025-001: Unauthorized fees paid by the Corporation Criteria – The Project must obtain approval from HUD to pay fees outside of the previously approved management fee. Condition – A project wholly-owned by the Corporation (the Project) paid the management company of the Project a bookkeeping fee that was not authorized by HUD. Questioned costs and how they were computed – $2,376. The questioned costs are bookkeeping fees that were paid by the Project prior to being approved by HUD. Context – The entire unauthorized bookkeeping fee of $2,376 that was charged to the Project in 2024 should not have been paid by the Project. Cause – In 2024, the management company charged a bookkeeping fee in the amount of $2,376 to the Project prior to the fee being approved by HUD. Effect – The Project paid the management company a bookkeeping fee that may constitute an unauthorized distribution. Identification of Repeat Finding – Yes, 2024-001. The finding remains open. Recommendation 2025-001 – We recommend that management continue to work with HUD to resolve the situation. Auditee’s comments and response – The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer