Finding Text
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (073-HD015-NP-HIV and 1995)
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size population 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: $2,383
Statement of condition 2023-001: Management fees of $2,383 were prepaid at December 31, 2023.
Criteria: In accordance with the HUD approved Management Agent Certification (HUD-9839-B), the management agent earns a fee based on an established rate of 5.37% of residential and miscellaneous income collected capped at $48 per unit per month, plus special fees of $8 per unit per month.
Effect: The Corporation is not in compliance with the HUD approved management agent certification. As a result, the Community's cash position at December 31, 2023, has been reduced by $2,383.
Cause: The Agent inadvertently paid fees in excess of fees earned.
Recommendation: The Agent should reimburse $2,383 to the Community.
Management's response: Agree. On March 26, 2024, the Agent reimbursed $2,383 to the Community.