We recommend that the Director of HUD’s New Orleans Office of Community Planning and Development require the Parish to support the cost reasonableness or repay its program from non-Federal funds $30,702 paid to its construction contractor for cost increases without adequate cost analyses.
2017-FW-1004 | Abril 06, 2017
St. Tammany Parish, Mandeville LA, Did Not Always Administer Its CDBG Disaster Recovery Grant in Accordance With HUD Requirements or as Certified
Community Planning and Development
- Status2017-FW-1004-001-COpenClosed$30,702Questioned 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.
- Status2017-FW-1004-001-DOpenClosed$58,873Questioned 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 Director of HUD’s New Orleans Office of Community Planning and Development require the Parish to support the cost reasonableness or repay its program from non-Federal funds $58,873 paid to its surveyor contractor for the sole-sourced contract without an adequate cost analysis.
- Status2017-FW-1004-001-EOpenClosed
We recommend that the Director of HUD’s New Orleans Office of Community Planning and Development require the Parish to maintain program files with all required documentation for each activity.
- Status2017-FW-1004-001-FOpenClosed
We recommend that the Director of HUD’s New Orleans Office of Community Planning and Development require the Parish to implement an internal audit function that satisfies program requirements.
- Status2017-FW-1004-001-GOpenClosed
We recommend that the Director of HUD’s New Orleans Office of Community Planning and Development require the Parish to revise its monitoring policy to include the role of the internal auditor once implemented, and finalize and fully implement or revise its fraud, waste, and abuse detection policy to reflect current procedures.
- Status2017-FW-1004-001-HOpenClosed
We recommend that the Director of HUD’s New Orleans Office of Community Planning and Development require the Parish to update its Web site to include current quarterly performance, budget, and progress reports.
- Status2017-FW-1004-001-IOpenClosed
We recommend that the Director of HUD’s New Orleans Office of Community Planning and Development require the Parish to obtain technical assistance concerning the disaster recovery program requirements, including related Federal Register requirements. Specifically, the technical assistance should include guidance on how to satisfy the requirement regarding maintaining an internal audit function and Web site maintenance.
2017-CH-1801 | Marzo 31, 2017
Judgment Imposed on the Former President and Founder of MDR Mortgage Corporation Regarding Allegations of Failing To Comply With HUD’s Federal Housing Administration Requirements
General Counsel
- Status2017-CH-1801-001-AOpenClosed$3,452,499Questioned 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.
Acknowledge that the judgment awarded $10,373,998 against the former president and founder of MDR Mortgage to the U.S. Government, of which HUD’s loss totaled $3,452,499.
2017-CF-1803 | Marzo 29, 2017
Final Civil Action – United Shore Financial Services, LLC, Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
General Counsel
- Status2017-CF-1803-001-AOpenClosed$45,000,000Questioned 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.
Acknowledge that $45 million in the attached settlement agreement represents an amount due HUD, less the Department of Justice’s civil debt collection fees.
2016-OE-0004S | Marzo 29, 2017
Opportunities for Improvement within CPD's Risk Management Process for Hurricane Sandy Grants
Enforcement Center
- Status2016-OE-0004S-01OpenClosed
Director for the Office of Field Management ensure that the CDBG-DR risk analysis worksheet includes risk factors that show the measurement of performance outputs to determine completed activities.
Community Planning and Development
- Status2016-OE-0004S-02OpenClosed
Director for the Office of Field Management update the risk analysis guidance for CDBG-DR grants to include the assessment of the likelihood of risk occurrence to help inform management which critical risks to address during monitoring.
- Status2016-OE-0004S-03OpenClosed
Director for the DRSI Division ensure that monitoring strategies correlate to the high-risk areas identified during the risk analysis and are in compliance with the central risk factor categories identified in HUD’s Monitoring Desk Guide.
- Status2016-OE-0004S-04OpenClosed
Ensure that CPD personnel that plan for, award, and manage grants and other forms of financial assistance receive formal risk analysis training.
2017-PH-1002 | Marzo 24, 2017
The Owner of Laurentian Hall Apartments, Pittsburgh, PA, Did Not Always Manage Its HUD-Mortgaged Project in Accordance With HUD Requirements
Housing
- Status2017-PH-1002-001-AOpenClosed$282,578Funds 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.
Pay the project $282,578 from non-project funds for the fair value of the commercial rent not collected from the lessees.
- Status2017-PH-1002-001-BOpenClosed$36,858Funds 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.
Request approval from HUD to lease the commercial space. If HUD approves the request, then execute a lease at fair market rent thereby increasing the project’s rent revenue by at least $36,858 per year.
- Status2017-PH-1002-001-COpenClosed$31,769Questioned 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.
Request approval from HUD for the $31,769 in project operating funds spent on building improvements or repay the project from nonproject funds for any amount not approved.
- Status2017-PH-1002-001-DOpenClosed$39,920Questioned 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 show that the $39,920 paid to replace an air conditioning system was fair and reasonable or repay the project from nonproject funds any amount determined not to be fair and reasonable (excluding any amount repaid as a result of recommendation 1C).
- Status2017-PH-1002-001-EOpenClosed$25,000Funds 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.
Remove the $25,000 lien on the project property.
- Status2017-PH-1002-001-FOpenClosed$8,597Questioned 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 $8,597 from nonproject funds for the ineligible expenses it incurred for management fee and gas utility expenses that were identified by the audit and any additional management fee and gas utility expenses improperly paid outside of our review period.
- Status2017-PH-1002-001-GOpenClosed
Develop and implement controls to ensure that financial statements are submitted to HUD in a timely manner, including paying the correct amount of annual payments according to the terms of the mortgage.