FAC Explorer

Finding 484702 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-08-20
Audit: 317585
Organization: Sunray Communities, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Company overpaid management fees in 2021 and 2022, exceeding HUD's approved limits.
  • Impacted Requirements: Management fees must adhere to the terms of the HUD-approved management agreement.
  • Recommended Follow-Up: Monitor and adjust management fees to avoid future overpayments, including a $6,719 reduction in 2023.

Finding Text

Finding #2023-001: Section 202 Capital Advance, Assistance Listing 14.157 Condition: The Company paid management fees during 2021 and 2022 in excess of the maximum amount of management fees approved by HUD. Criteria: The Company’s property management fees must follow the HUD approved management agreement. Effect: The Company overpaid property management fees in 2021 and 2022. Questioned Cost: $6,719 Cause: Oversight Repeat Finding: No Recommendation: The Company should monitor property management fees to ensure the management fees follow the terms set forth in the property management agreement. Auditor’s Comment: We recommend the Company reduce current management fees by $6,719 during 2023 to account for excess management

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Sunray Communities, Inc. No. 112-EE003 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2023 Compliance Review: A. Comments on Findings and Recommendations: We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. Actions Taken: FINDING 1: Section 202 Capital Advance, Assistance Listing 14.157 CORRECTIVE ACTION COMPLETED: The Company reduced 2023 management fees by $6,719. Finding 2023-001 cleared. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 US. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Ms. Connie Quillen, Vice President, Asset Living.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $178,853