Verify all management fees charged to the projects from 2013 through 2015 were appropriate.
Publication Report
2017-KC-1001 | December 15, 2016
Majestic Management, LLC, a Multifamily Housing Management Agent in St. Louis, MO, Did Not Always Comply With HUD’s Requirements When Disbursing Project Funds
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Majestic Management, LLC, located in St. Louis, MO. Our objective was to determine whether Majestic Management charged only the appropriate fees in managing… moreRelated Recommendations
Housing
- Status2017-KC-1001-001-AOpenClosed$17,414.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Provide support showing that $17,414 in management fees charged to the projects using a budgeted amount represented actual amounts or repay the difference to each affected project.
- Status2017-KC-1001-001-BOpenClosed$447,345.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Provide documentation to support that it paid itself $447,345 for eligible purposes or reimburse the appropriate projects for the balance.
- Status2017-KC-1001-002-AOpenClosed$231,091.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Require Majestic Management to reimburse the appropriate projects their portion of $231,091 for work not completed or overbilled.
- Status2017-KC-1001-002-BOpenClosed$462,281.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Require Majestic Management to provide support that $462,281 paid for procurements was reasonable or reimburse the appropriate projects for the balance.
- Status2017-KC-1001-003-AOpenClosed$11,184.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Reimburse the appropriate projects their portion of $11,184 that it charged for ineligible items.
- Status2017-KC-1001-003-BOpenClosed$48,891.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Provide documentation to support that $48,891 was spent for eligible purposes or reimburse the appropriate projects for the balance.