Finding 21813 (2022-001)

TWIN PORTS ACCESSIBILITY PROJECT, INC. HUD PROJECT NO. 092-11251 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2022 C. Findings and Questioned Costs-Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project overpaid management fees to the management company. Criteria: The management company should calculate management fees using the correct formula. Effect: The Project's management fee expense is overstated. Context: The management fee for the year was tested for accuracy. The test determined that the management fee percentage for the year needed to be revised. The details and results of the sample are as follows: Number Dollars Population 1 $36,777 Sample 1 36,777 Not in Compliance 1 36,777 Questioned Costs $271 Cause: The management company did not compute the management fee correctly. Recommendation: The management company should repay the $271 to the Project. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. Questioned Costs - Department of Housing and Urban Development $271 Non-compliance code - J