Finding Text
Finding No. 2022-001; Section 202, Assistance Listing 14.157 Statement of Condition During the year ended December 31, 2022, the project paid management fees of $2,450 in excess of the amount approved by HUD. Criteria Management fee payments are limited to amounts determined in accordance with the terms of the management agreement. Questioned Costs $2,450 Effect The overpaid amount is a nonallowable expense of the project and therefore considered to be questioned costs. Cause Lack of management oversight caused management fees to be overpaid during the current year. Recommendation The management company should apply the overpaid management fee to a future month's payment or reimburse the property in the amount of $2,450 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: N ? Special tests and provisions Finding Resolution Status: Resolved.