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Línea Directa

REPORTAR FRAUDE, DESPERDICIO O ABUSO
  • Recommendation Number: 2017-LA-1004-001-I
  • Status: Closed
  • Date Issued: Junio 13, 2017
Closed Date:
Febrero 01, 2018

Repay the project from non-project funds $1,352 for expenses related to the identity-of-interest hair salon.

Publication Report

2017-LA-1004 | Junio 13, 2017

Cypress Meadows Assisted Living, Antioch, CA, Was Not Administered in Accordance With Its Regulatory Agreement and HUD Requirements

We audited Cypress Meadows Assisted Living based on a U.S. Department of Housing and Urban Development (HUD), Departmental Enforcement Center, referral.  The referral asserted that the owner took distributions from Cypress Meadows for expenses... más

Related Recommendations

General Counsel

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-A
    Closed on Mayo 29, 2019
    $15,000.00
    Questioned 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.

    Summary

    Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies against Cypress Meadows, LLC; Skyline Crest Enterprises, LLC; the project’s owner; or all three for inappropriately disbursing funds in violation of the project’s regulatory agreement, operating lease agreement, and HUD requirements.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-B
    Closed on Septiembre 19, 2018
    Summary

    Pursue appropriate civil money penalties and administrative actions, up to and including debarment, against Cypress Meadows LLC; Skyline Crest Enterprises LLC; the project’s owner; or all three for violating the project’s regulatory agreement, operating lease agreement, and HUD requirements.

Housing

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-C
    Closed on Febrero 01, 2018
    $263,289.00
    Questioned 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.

    Summary

    Repay the project from non-project funds $263,289 for ineligible salary expenses.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-D
    Closed on Febrero 01, 2018
    $283,307.00
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Summary

    Remove $283,307 in ineligible accrued salary fees payable from its financial statements and records and ensure that these expenses are not accrued or paid for with project funds.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-E
    Closed on Febrero 01, 2018
    $110,710.00
    Questioned 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.

    Summary

    Repay the project from non-project funds $110,710 for ineligible offsite accounting expenses.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-F
    Closed on Febrero 01, 2018
    $129,416.00
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Summary

    Remove $129,416 in ineligible accrued offsite accounting fees payable from its financial statements and records and ensure that these expenses are not accrued or paid for with project funds.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-G
    Closed on Febrero 01, 2018
    $99,160.00
    Questioned 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.

    Summary

    Repay the project from non-project funds $99,160 for ineligible personal health insurance expenses of the owner.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-H
    Closed on Febrero 01, 2018
    $4,179.00
    Questioned 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.

    Summary

    Repay the project from non-project funds $4,179 for excessive bank fees.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-J
    Closed on Febrero 01, 2018
    Summary

    Obtain approval from HUD for a lease agreement with the hair salon.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-K
    Closed on Febrero 01, 2018
    $65,232.00
    Questioned 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.

    Summary

    Provide documentation to support that $65,232 in disbursements was used on reasonable and necessary operating expenses or repay the project from non-project funds.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-L
    Closed on Febrero 01, 2018
    $620,937.00
    Questioned 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.

    Summary

    Pay the project $620,937 in uncollected rent from non-project funds.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-M
    Closed on Febrero 01, 2018
    $162,462.00
    Questioned 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.

    Summary

    Pay the project from non-project funds $162,462 in lease agreement charges not deposited into Cypress Meadows’ bank account.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-N
    Closed on Febrero 01, 2018
    Summary

    Remove Skyline Crest Enterprises, LLC, as the operator and replace it with a HUD-approved independent operator.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-O
    Closed on Febrero 01, 2018
    Summary

    Develop and implement written policies and procedures for the management of the project, including but not limited to financial policies for cash disbursements, cash receipts, and documentation requirements.