Finding Text
Finding Reference Number: 2022-01 Title and CFDA Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: Not applicable Criteria: In accordance with HUD regulations, entities should not make unauthorized distributions of project funds. Statement of Condition: The project overpaid management fees by $4,142. Cause: The Corporation paid management fees in excess of the amount allowed by the Regulatory Agreement. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: J - Unauthorized Management Fees Questioned Costs: $4,142 Reportable Views of Responsible Officials: We agree that the Corporation overpaid the management fees, resulting in a receivable from HRC as of December 31, 2022. Management agrees that the fees were paid in excess of the amount allowed by the HUD approved management certification. Context: Not applicable Recommendation: Management fee calculations should be consistent with terms agreed upon. Auditors? Summary of the Auditee?s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2023