Develop and implement procedures for referring operators who fail to provide required financial statements to the Departmental Enforcement Center.
2018-BO-0001 | Septiembre 17, 2018
HUD’s Office of Residential Care Facilities Did Not Always Have and Use Financial Information to Adequately Assess and Monitor Nursing Homes
Housing
- Status2018-BO-0001-002-DOpenClosed
- Status2018-BO-0001-002-EOpenClosed
Develop and implement metrics to evaluate each nursing home’s financial data for changes in utilization, payments, profitability, and solvency (debt service credit ratios).
2018-DE-1001 | Septiembre 06, 2018
Meeker Housing Authority, Meeker, CO, Improperly Used Project Operating Funds for Its 221(d)(3) Multifamily Housing Insurance Program
Housing
- Status2018-DE-1001-001-AOpenClosed
Put all project bank accounts in the name of the project.
- Status2018-DE-1001-001-BOpenClosed
Separate all owner bank accounts from the project’s bank accounts.
- Status2018-DE-1001-001-COpenClosed
Develop and implement controls over the distinction between project funds and owner funds. These controls should include policies related to when the owner is allowed to take project funds owed to the owner.
- Status2018-DE-1001-001-DOpenClosed
Take HUD-approved training related to operating and maintaining a multifamily project.
- Status2018-DE-1001-002-AOpenClosed$142,805Questioned 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.
Repay the project’s operating account from nonproject funds for the $142,805 spent on ineligible expenses.
- Status2018-DE-1001-002-BOpenClosed$12,355Questioned 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 for the $12,355 in project funds spent to pay individuals who were not on the payroll and for services provided for project operations. For any portion of this amount that is not supported, the owner should repay the project operating account using nonproject funds.
- Status2018-DE-1001-002-COpenClosed
Obtain training on the eligible use of project funds.
- Status2018-DE-1001-002-DOpenClosed
Develop and implement detailed policies and procedures for procurement, travel, and the use of its credit cards. These controls should comply with HUD regulations regarding procurement and other disbursement documentation requirements.
- Status2018-DE-1001-003-AOpenClosed
Submit any outstanding audited financial statements.
- Status2018-DE-1001-003-BOpenClosed
Review the audited financial statements and determine the amount of outstanding mortgage payments due.
- Status2018-DE-1001-003-COpenClosed
Work with the local multifamily office to make any outstanding mortgage payments or devise a plan to bring the property current through the use of available funds.
- Status2018-DE-1001-003-DOpenClosed
Develop and implement policies and procedures to ensure that the certified public accountant submits audited financial statements by the required HUD deadline.
- Status2018-DE-1001-003-EOpenClosed
Maintain separate books of account and submit audited financial statements solely for the project.
- Status2018-DE-1001-004-AOpenClosed$50,400Questioned 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 project’s operating account $50,400 from the reserve for replacement account.
- Status2018-DE-1001-004-BOpenClosed
Receive training on the proper use of its reserve for replacement account.
- Status2018-DE-1001-004-COpenClosed
Develop and implement policies and procedures for the use of reserve for replacement funds, which ensure that the project does not use operating funds for any items that qualify for the use of reserve for replacement funds.
2018-FW-1006 | Agosto 31, 2018
Louis Manor Apartments, Port Arthur, TX, Multifamily Section 8 Program, Subsidized Unsupported Tenants and Uninspected Units
Housing
- Status2018-FW-1006-001-AOpenClosed$268,452Questioned 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.
We recommend that the Southwest Region Director of Multifamily Housing require the Louis Manor Apartments’ owner to support that the subsidies for 14 tenants with missing income verifications, income discrepancies, incorrect annual income, and missing annual certifications were adequately supported and accurate or repay HUD $268,452 for those subsidies. Repayment must be from nonproject funds.
- Status2018-FW-1006-001-BOpenClosed
We recommend that the Southwest Region Director of Multifamily Housing require the Louis Manor Apartments’ owner to implement appropriate controls to ensure that it conducts annual recertifications for all tenants in a timely manner, as required.