Finding Text
2024-001The corporation was charged excessive management fees of $15,928 by the management agent during the year ended June 30, 2024. The management agent correctly recorded the $15,928 receivable in the corporation's accounting records; however, the corporation was not reimbursed for the overpayment until August 2024.
Federal Program: Capital advance grant and project rental assistance contract
Federal Award Identification: 083-EE050
Assistance Listing Number: 14.157
Federal Agency: U.S. Department of Housing and Urban Development
Criteria. The management agreement limits management fees to 8.58% of residential and miscellaneous income collected.
Cause. Unknown.
Effect. The corporation was charged excessive management fees of $15,928.
Recommendation. We recommend that excessive management fees be reimbursed more timely.