Finding 504183 (2024-001)

Requirement

Questioned Costs

Year

2024

Accepted

2024-10-30

Audit: 326638

Organization: St. Matthias Senior Housing, Inc. (KY)

Auditor: Miller Mayer Sullivan Stevens LLP

AI Summary

Issue: The corporation overpaid management fees by $6,143, which were recorded but not reimbursed until later.
Requirements: Management fees should not exceed 8.18% of income, as per the management agreement.
Follow-up: Ensure timely reimbursement of excessive fees to prevent future cash flow issues.

Finding Text

The corporation was charged excessive management fees of $6,143 by the management agent during the year ended June 30, 2024. The management agent correctly recorded the $6,143 receivable in the company's accounting records; however, the corporation was not reimbursed for the overpayment until August and September 2024. Federal Program: Capital advance grant and project rental assistance contract Federal Award Identification: 083-EE077 Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development Criteria. The management agreement limits management fees to 8.18% of residential and miscellaneous income collected. Cause. Unknown. Effect. The corporation was charged excessive management fees of $6,143. Recommendation. We recommend that excessive management fees be reimbursed more timely.

Corrective Action Plan

We have only managed this property since June 1 of 2023. This was an error in the management fee calculation that has since been corrected. And the funds have been returned to the property.

Other Findings in this Audit

1080625 2024-001

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Programs in Audit

ALN	Program Name	Expenditures
14.157	Supportive Housing for the Elderly	$61,866