Finding Text
The corporation was charged excessive management fees of $3,027 by the management agent during the year ended September 30, 2023. The management agent correctly recorded a $3,027 receivable in the corporation's accounting records; however, the management agent appears to have also overcharged management fees from October 2023 through December 2023.
Criteria. The HUD Regulatory Agreement does not allow the project to pay out any funds except for reasonable operating expenses and necessary repairs.
Cause. Unknown.
Effect. The management agent has not reimbursed the project in a timely manner.
Recommendation. We recommend that the management agent reimburse $3,027 to the project as soon as possible.