FAC Explorer

Finding 2698 (2023-001)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2023-11-29
Audit: 4569
Organization: Roland M Boucher Apartments, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Core Issue: The property was overcharged management fees by $8,914 due to incorrect fee calculations.
  • Impacted Requirements: HUD regulations only allow payment for eligible costs related to the property.
  • Recommended Follow-Up: Management should reimburse the overcharged amount or adjust future fees accordingly and ensure accurate fee calculations moving forward.

Finding Text

Federal program - Section 223(f) Insured Mortgage: Criteria - HUD regulations specify that only eligible costs relating to the property are allowed to be paid by the property; Condition - the property was overcharged management fees totaling $8,914; Cause - the fee charged included vendor reimbursements, replacement reserve withdrawals and cash transfers in the cash receipts base in error; Recommendation - management should reimburse the property for the amount overcharged or reduce the next month’s fee by the amount overcharged and calculate the fee correctly in the future. Response: Management will reimburse the property for the amount overcharged and will calculate the fee correctly in the future.

Corrective Action Plan

Management will reimburse the property for the amount overcharged and will calculate the fee correctly in the future. HOC has made significant changes to our software systems, expanded our finance team and restructured functions to improve financial record keeping. The Senior Accountant responsible for this property, Corey Krajewski(krajewski@wdchoc.org), will ensure that appropriate fees will be allocated and charged

Categories

Questioned Costs Cash Management HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.43M
14.195 Section 8 Housing Assistance Payments Program $515,137
14.157 Supportive Housing for the Elderly $340,432
14.191 Multifamily Housing Service Coordinators $38,245