MONTGOMERY SUPPORTED HOUSING INC

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.

Findings reference number: 2023-001 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: No Criteria: Management fees and bookkeeping fees for the year ended December 31, 2023 were overpaid. Condition: Per the HUD approved Management Agent's Certification effective September 1, 2022, management fees are capped at $45 per unit per month with an additional $13 of add on fees allowed. Bookkeeping fee are capped at $10 per unit per month. Cause: Management oversight. Effect: Management miscalculated the additional fees for September to December 2022, and hence, fees were paid in excess of the cap by $60 and bookkeeping fees were paid in excess of the cap by $60. A receivable was recorded for the $120 of management and bookkeeping fees that were overpaid. Noncompliance code: J. Unauthorized management fees Questioned costs: $120 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: 12/31/24 Response: Management plans to repay the overpayment as soon as possible.