Support that $1,236,210 in funds not yet spent on the contracts reviewed, along with any new procurements, would be reasonable or reallocate the funds to ensure that they will be put to their intended use
2022-NY-1002 | Marzo 30, 2022
The Housing Authority of Plainfield, NJ, Did Not Always Comply With Requirements When Administering Its Public Housing Programs
Public and Indian Housing
- Status2022-NY-1002-002-BOpenClosed$1,236,210Funds 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.
- Status2022-NY-1002-002-COpenClosed
Review any ongoing time-and-materials contracts and if requirements were not followed, remedy the noncompliance or reprocure the contracts to ensure compliance with HUD requirements.
- Status2022-NY-1002-002-DOpenClosed
Ensure that all Authority staff members working with procurements and contract administration receive procurement training on applicable requirements, including the requirements related to cost reasonableness, contract types, the number of bids or quotations, contract provisions, and maintaining documentation to show the history of procurements.
- Status2022-NY-1002-002-EOpenClosed
Establish and implement adequate record-keeping procedures to comply with applicable procurement requirements, including a register of all contracts with key information and a checklist for each procurement action, to ensure that it completes required steps and receives all required documentation.
2022-KC-0002 | Marzo 22, 2022
Approximately 31,500 FHA-Insured Loans Did Not Maintain the Required Flood Insurance Coverage in 2020
Housing
- Status2022-KC-0002-001-AOpenClosed$1,090,636Funds 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.
Require lenders to provide evidence of sufficient flood insurance or execute indemnification agreements for the 21 loans in our statistical sample that did not have sufficient flood insurance at the time of our audit to put nearly $1.1 million to better use. (See appendix A.)
- Status2022-KC-0002-001-BOpenClosed$1,506,887,996Funds 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.
PrioridadPriorityWe believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
Develop a control to detect loans that did not maintain the required flood insurance to put $1.5 billion to better use by avoiding potential future costs to the FHA insurance fund from inadequately insured properties.
Corrective Action Taken
In November 2022, FHA published the Acceptance of Private Flood Insurance for FHA-Insured Mortgages final rule (Docket No. FR-6084-F-02) in the Federal Register and issued Mortgagee Letter 2022-18, Acceptance of Private Flood Insurance for FHA-Insured Mortgages (ML 2022-18). These policy changes not only strengthened Single Family’s Mortgagee requirements regarding flood insurance, but they also introduced the ability for borrowers and Mortgagees to purchase private flood insurance. In January 2023, the sections in ML 2022-18 that pertain to HUD’s forward mortgage programs were superseded by the FHA Single Family Housing Policy Handbook (Handbook 4000.1), adding a requirement that the Mortgagee review all FHA-insured properties annually to determine if the property is located within a Special Flood Hazard Area (SFHA). For properties located within a SFHA, the Mortgagee must ensure flood insurance is in force for the life of the mortgage and that the property has sufficient flood insurance coverage. To ensure compliance with the policy requirements, the Mortgagee must include updated flood insurance information for properties where flood insurance is required in the Servicing and Claims File. In addition, Handbook 4000.1 includes flood insurance servicing policy updates. HUD submitted a revised management decision reflecting this action on June 22, 2023.
- Status2022-KC-0002-001-COpenClosed
Consult with the Office of General Counsel to review the language in the statutes, regulations, and handbooks and if warranted, make adjustments to the forward mortgage handbook to ensure consistency with the statute.
- Status2022-KC-0002-001-DOpenClosed
Consult with the Office of General Counsel to review the language in the statutes, regulations, and handbooks and if warranted, make adjustments to the HECM handbook to ensure consistency with the statute and regulation.
2022-NY-0001 | Marzo 09, 2022
HUD Did Not Implement Adequate Grant Closeout and Reporting Processes To Ensure Consistent Application of GONE Act Requirements
Chief Financial Officer
- Status2022-NY-0001-001-AOpenClosed
Develop and implement controls for use of the bulk grant closeout process going forward to ensure that grants are closed in accordance with all applicable requirements, including that administrative actions and required work under the grant award have been completed by the grantee before the grant is closed out. These controls should include but not be limited to increased collaboration and communication between headquarters and field offices.
- Status2022-NY-0001-002-AOpenClosed
Develop and implement controls to ensure that future grant data reporting to stakeholders is consistent and accurate, including defining how records should be counted and data should be presented and ensuring that accurate POP dates are maintained in HUD’s systems.
2021-OE-0001 | Febrero 17, 2022
Fiscal Year 2021 Federal Information Security Modernization Act (FISMA) Evaluation Report
Chief Information Officer
- Status2021-OE-0001-01OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2021-OE-0001-02OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2021-OE-0001-03OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2021-OE-0001-04OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2021-OE-0001-05OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2021-OE-0001-06OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2021-OE-0001-07OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2021-OE-0001-08OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
PrioridadPriorityWe believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
Define and communicate policies and procedures to ensure that its products, system components, systems, and services comply with its cybersecurity and SCRM requirements. This recommendation includes:
- Identification and prioritization of externally provided systems (new and legacy), components, and services.
- How HUD maintains awareness of its upstream suppliers.
- The integration of acquisition processes tools, and techniques to use the acquisition process to protect the supply chain.
- Contract tools or procurement methods to confirm that contractors are meeting their obligations (derived from OIG FISMA metric 14).
Status
The Office of the Chief Information Officer (OCIO) estimated it would complete corrective action for this recommendation by August 2023. In May 2024, HUD OIG reviewed the Office of the Chief Information Officer’s (OCIO) progress in closing this recommendation as part of the FY 2024 FISMA evaluation. At that time, OCIO provided its draft SCRM Policy, SCRM Procedures, SCRMES Charter, and a SCRM Technical Roadmap. Additionally, HUD provided agency-specific clauses. As of November 2024, the guidance had not yet been finalized.
Analysis
To fully address this recommendation, HUD must establish that it has defined and communicated policies and procedures to ensure that its products, system components, systems, and services comply with its cybersecurity and SCRM requirements.
Implementation of this recommendation will result in HUD continuing to mature in supply chain risk management, establishing and defining the policies and procedures of SCRM requirements as it relates to systems and system components.
- Status2021-OE-0001-09OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2021-OE-0001-10OpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.