Finding Text
Finding reference number: #2022-003 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 2,957 CO99T851006 REDI IV 2017 1,527 Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information 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: $4,484 Repeat Finding: Yes Statement of condition #2022-003 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid management fees to the Agent in excess of the fees earned resulting in prepaid management fees of $4,484 at March 31, 2022. Criteria: The HUD approved management certification provides for the payment of management fees subsequent to collections. Effect or potential effect: The Corporation is not in compliance with the various HUD approved management certifications and the Corporation's cash position at March 31, 2022 has been reduced by $4,484. Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion date: December 21, 2022 Management response: Agreed. The Corporation concurs with the finding and agrees with the auditor's recommendation. The Agent repaid the prepaid management fees on December 21, 2022.