Finding 20767 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
$1
Year
2022
Accepted
2022-12-30

AI Summary

  • Core Issue: The Corporation paid unauthorized management fees, resulting in a prepaid amount of $1,122.
  • Impacted Requirements: This payment violated HUD's management certification, affecting the Corporation's cash position.
  • Recommended Follow-up: Ensure the Agent repays any excess fees, which has been completed as of July 20, 2022.

Finding Text

Finding reference number: #2022-002 Assistance Listing title and number (federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (101-HD029 and 2004) Auditor non-compliance code: J ? Unauthorized management fees Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $1,122 Statement of condition #2022-002: For the year ended March 31, 2022, the Corporation paid management fees to the Agent in excess of the fees earned resulting in prepaid management fees of $1,122 at March 31, 2022. Criteria: The HUD approved management certification provides for the payment of management fees subsequent to collections. Effect or potential effect: The Corporation is not in compliance with the HUD approved management certification and the Corporation?s cash position at March 31, 2022 has been reduced by $1,122. This amount has been included in the computation of surplus cash, distributions, and residual receipts so to not understate the deposit due to residual receipts. Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion date: July 20, 2022 Management response: The Corporation concurs with the finding and agrees with the auditor?s recommendation. The Agent repaid the prepaid management fees on July 20, 2022.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Cash Management

Other Findings in this Audit

  • 20763 2022-001
    Significant Deficiency Repeat
  • 20764 2022-002
    Significant Deficiency
  • 20765 2022-003
    Significant Deficiency
  • 20766 2022-001
    Significant Deficiency Repeat
  • 20768 2022-003
    Significant Deficiency
  • 20769 2022-001
    Significant Deficiency Repeat
  • 20770 2022-002
    Significant Deficiency
  • 20771 2022-003
    Significant Deficiency
  • 597205 2022-001
    Significant Deficiency Repeat
  • 597206 2022-002
    Significant Deficiency
  • 597207 2022-003
    Significant Deficiency
  • 597208 2022-001
    Significant Deficiency Repeat
  • 597209 2022-002
    Significant Deficiency
  • 597210 2022-003
    Significant Deficiency
  • 597211 2022-001
    Significant Deficiency Repeat
  • 597212 2022-002
    Significant Deficiency
  • 597213 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $340,446
14.181 Supportive Housing for Persons with Disabilities $3,729