Finding 537285 (2024-001)

- Repeat Finding
Requirement
J
Questioned Costs
$1
Year
2024
Accepted
2025-03-26

AI Summary

  • Core Issue: Bookkeeping fees exceeded the HUD cap of $10 per unit per month, resulting in a $30 overpayment.
  • Impacted Requirements: Compliance with HUD regulations regarding management fees, specifically the Management Agent's Certification.
  • Recommended Follow-up: Ensure future payments align with HUD limits and monitor management oversight to prevent repeat findings.

Finding Text

Findings reference number: 2024-001 - Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities, AL 14.181 - Type of finding: Compliance - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: Yes - Criteria: Per the HUD approved Management Agent's Certification effective September 1, 2022, bookkeeping fee are capped at $10 per unit per month. - Condition: Bookkeeping fees for the year ended December 31, 2024 were overpaid. - Cause: Management oversight. - Effect: Management miscalculated the bookkeeping fees for January to April 2024, and hence, fees were paid in excess of the cap by $30. A receivable was recorded for the $30 of management and bookkeeping fees that were overpaid. - Noncompliance code: J. Unauthorized management fees - Questioned costs: $30 - Reporting views of officials: Auditee agrees with the finding, - Context: This was noted while performing audit procedures on management and bookkeeping fees during the audit. - Recommendation: Management should ensure that management and bookkeeping fees are paid in accordance with HUD limits. - Auditee's comments: Auditee agrees with the finding and will repay the overpayment. - Auditors' summary of auditee's comments: They are in agreement. - Completion date: 12/31/25 - Response: Management plans to repay the overpayment as soon as possible.

Corrective Action Plan

Audit Finding 2024-001: Bookkeeping fees for the year ended December 31, 2024 were overpaid by $30. Additionally, there was still $30 due to the Project for overpaid management fees from the prior year. - Management will repay the $60 by deducting $30 from the management fee and $30 from the bookkeeping fee for March. - Name and Title of contact person responsible for corrective action: -Steve Colella, - Making a Difference in Property Management, LLC - Management Agent - 6800 Park Ten Blvd, Ste 184-W - San Antonio, TX 78213

Categories

Questioned Costs HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $172,804