Finding Text
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: During 2024, the Project overpaid management fees to the management company. This is a repeat of Finding 2024-001. Criteria: The management company should calculate management fees using the correct formula. Effect: The Project's management fee expense for the year ended December 31, 2024 was overstated. Context: The management fee for the year ended December 31, 2024 was tested for accuracy. Through testing, it was determined that the total cash receipts number used to calculate management fee was overstated. The details and results of the sample are as follows: Population - N/A, $45,648; Sample - N/A, $45,648; Not in Compliance - N/A, $388; Questioned Costs - $388; Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $388 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company repaid the management fees to the Project in January 2026. Total-Department of Housing and Urban Development - $388; Non-compliance code - J