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.