oversight

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)

                                        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