U.S. Department of Housing and Urban Development
Wanamaker Building, Suite 1005
100 Penn Square East
Philadelphia, PA 19107-3380
District Inspector General for Audit
Audit Related Memorandum
No. 96-PH-214-1803
November 2, 1995
MEMORANDUM FOR: Edward J. Palombizio, Director, Multifamily
Division, Pittsburgh Area Office, 3EHM
FROM: Edward F. Momorella, District Inspector General
for Audit, Mid-Atlantic, 3AGA
SUBJECT: Westgate Management Company
Survey of Management Agent Operations
Trenton, New Jersey
We completed the subject survey. The purpose of the survey was to
review selected management agent operations in the Mid-Atlantic,
Pittsburgh Field Office jurisdiction and determine whether further
audit work was necessary.
Specific areas reviewed during the survey were:
- general physical condition and maintenance of the
projects managed by Westgate;
- financial management; and
- leasing and occupancy.
We interviewed Multifamily Asset Management Branch staff, and
reviewed HUD files relative to projects managed by Westgate. We
reviewed the latest IPA audit reports. We visited the Westgate
offices and interviewed staff. We selected four projects for
physical inspection and tenant file review, Douglas Plaza Apts,
Hawksworth Garden II, Village of Searights and Mountainview
Gardens.
2
Our survey disclosed the following:
Village of Searights:
- Six of seven units inspected failed HQS for lack of a
discharge line on the water heaters. The manager
acknowledged that a discharge line would need to be
installed on all unit water heaters. The manager was not
aware this was an HQS requirement.
- Vacancy claims were submitted improperly. Supporting
documentation for 1995 vacancy claims disclosed that unit
turnaround times were greater than reported resulting in
an overpayment of $876. The manager attributed the
discrepancy to miscommunication between maintenance and
the person preparing the claims. The manager agreed to
document the date a unit is ready for occupancy via work
order in the future.
- The project received HAP payments totaling $950 for a
unit which was never occupied. A qualified applicant
paid a security deposit and two month's rent but never
moved into the unit. A medical disability arose between
eligibility processing and occupancy which precluded
move-in. The manager was unaware the tenant had not
moved in.
Douglas Plaza
- The manager inadvertently processed the last market rent
increase incorrectly. Market renters have been
undercharged $2 and $1 for one bedroom and one bedroom
deluxe units respectively since April, 1994. As a result
excess rental income payable to HUD has been underpaid by
$710.
No reportable deficiencies were noted regarding financial
management and leasing.
3
Review results were discussed with Westgate and they concurred with
OIG's presentation. Recovery of the excess vacancy claims,
ineligible HAP, and excess rental income was processed through
Westgate's October HAP request and Monthly Report of Excess Income
submittal. Corrective action was planned for the HQS violation.
Although no controlled findings resulted from our review, we
recommend your staff confirm the HQS resolution during your next
physical inspection of the Village of Searights. Based on the
survey work done, we have concluded no additional audit work is
necessary.
If you have any questions please contact Irving I. Guss, Assistant
District Inspector General for Audit at (215) 656-3401.
Attachment - Distribution
CC: OSWALD
CIANCI
3AGA:GUSS:AMP:11/02/95
Correspondence
Code 3AGA
Concurrence GUSS
Date
REPORT NAME: Westgate Management Company
Survey of Management Agent Operations
Trenton, New Jersey
REPORT NO: 96-PH-214-1803
ISSUE DATE: November 2, 1995
REGIONAL OFFICE (NON-OIG)
Edward J. Palombizio, Director, Multifamily Division, 1
Pittsburgh Area Office, 3EHM
Regional Comptroller, 3AF 1
HEADQUARTERS (OIG)
Director, Planning and Administration, GAP (Room 8180) 1
Director, Quality Assurance and Audit Follow-up Staff, GAD 1
(Room 8174)
Central Files, GFA (Room 8266) 2
Semi-Annual Report Coordinator, GFA (Room 8254) 1
DISTRIBUTION OUTSIDE HUD
Assistant Director in Charge, US GAO, 820 1st St. NE Union Plaza 1
Bldg 2, Suite 150, Washington, DC 20002 8
Attn: Mr. Cliff Fowler
From:
Edward F. Momorella, DIGA, Mid-Atlantic
Wanamaker Building, Suite 1005
100 Penn Square East
Philadelphia, PA 19107-3380
Attachment 1
_________________________________________________________________
DISTRIBUTION
Director, Multifamily Division, Pittsburgh Area Office, 3EHM
Regional Comptroller, 3AF
Assistant Director in Charge
US GAO
820 1st St.
NE Union Plaza
Bldg 2, Suite 150
Washington, DC 20002
ATTN: Mr. Cliff Fowler
Westgate Management Company, Trenton, NJ
Published by the Department of Housing and Urban Development, Office of Inspector General on 1995-11-02.
Below is a raw (and likely hideous) rendition of the original report. (PDF)