Finding 31483 (2022-003)

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

AI Summary

  • Core Issue: The Corporation overpaid management fees by $4,484, leading to non-compliance with HUD regulations.
  • Impacted Requirements: Payments must align with HUD-approved management certifications, which specify fees should only be paid after collections.
  • Recommended Follow-Up: Ensure the Agent repays the excess fees, which has been completed as of December 21, 2022.

Finding Text

Finding reference number: #2022-003 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 2,957 CO99T851006 REDI IV 2017 1,527 Auditor non-compliance code: P - Other 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: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,484 Repeat Finding: Yes Statement of condition #2022-003 (Assistance Listing No. 14.195): 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 $4,484 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 various HUD approved management certifications and the Corporation's cash position at March 31, 2022 has been reduced by $4,484. Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion date: December 21, 2022 Management response: Agreed. The Corporation concurs with the finding and agrees with the auditor's recommendation. The Agent repaid the prepaid management fees on December 21, 2022.

Corrective Action Plan

Statement of Condition #2022-003: 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 $4,484 at March 31, 2022. Recommendation: The Agent should repay the prepaid management fee balance. Action(s) Taken or Planned on the Finding: Agreed. The Corporation concurs with the finding and agrees with the auditor's recommendation. The Agent will repay the prepaid management fees.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 31482 2022-002
    Material Weakness Repeat
  • 31484 2022-004
    Material Weakness Repeat
  • 31485 2022-005
    Significant Deficiency
  • 31486 2022-001
    Significant Deficiency Repeat
  • 31487 2022-002
    Material Weakness Repeat
  • 31488 2022-003
    Significant Deficiency Repeat
  • 31489 2022-004
    Material Weakness Repeat
  • 31490 2022-005
    Significant Deficiency
  • 31491 2022-001
    Significant Deficiency Repeat
  • 31492 2022-002
    Material Weakness Repeat
  • 31493 2022-004
    Material Weakness Repeat
  • 31494 2022-005
    Significant Deficiency
  • 31495 2022-002
    Material Weakness Repeat
  • 31496 2022-004
    Material Weakness Repeat
  • 31497 2022-005
    Significant Deficiency
  • 31498 2022-006
    Material Weakness
  • 31499 2022-005
    Significant Deficiency
  • 607924 2022-002
    Material Weakness Repeat
  • 607925 2022-003
    Significant Deficiency Repeat
  • 607926 2022-004
    Material Weakness Repeat
  • 607927 2022-005
    Significant Deficiency
  • 607928 2022-001
    Significant Deficiency Repeat
  • 607929 2022-002
    Material Weakness Repeat
  • 607930 2022-003
    Significant Deficiency Repeat
  • 607931 2022-004
    Material Weakness Repeat
  • 607932 2022-005
    Significant Deficiency
  • 607933 2022-001
    Significant Deficiency Repeat
  • 607934 2022-002
    Material Weakness Repeat
  • 607935 2022-004
    Material Weakness Repeat
  • 607936 2022-005
    Significant Deficiency
  • 607937 2022-002
    Material Weakness Repeat
  • 607938 2022-004
    Material Weakness Repeat
  • 607939 2022-005
    Significant Deficiency
  • 607940 2022-006
    Material Weakness
  • 607941 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $592,026
14.195 Section 8 Housing Assistance Payments Program $65,923
14.191 Multifamily Housing Service Coordinators $54,116