We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to include milestones and appropriate consequences for not meeting those milestones in future subrecipient agreements to ensure that expenditure deadlines remain on track. Implementing this recommendation could assist the Texas GLO in avoiding possible future litigation based on the lack of required benchmarks in its contracts.
2022-FW-1001 | Enero 04, 2022
The City of Houston, Houston, TX, Faced Challenges in Administering Its Hurricane Harvey Program and Risked Losing Its Funding
Community Planning and Development
- Status2022-FW-1001-001-AOpenClosedClosed on Abril 19, 2022
- Status2022-FW-1001-001-BOpenClosedClosed on Septiembre 28, 2023
We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to provide its plan to ensure that processes are in place to assist those participants transitioning from the City’s programs to the Texas GLO’s programs.
- Status2022-FW-1001-001-COpenClosedClosed on Septiembre 29, 2023
With HUD’s approval of action plan amendment 8, we recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to provide its plan to continuously monitor the City’s pace and performance in its remaining Hurricane Harvey CDBG-DR program and take appropriate action to ensure that program goals are met. The plan should include a process for repurposing additional grant funds, if necessary, to avoid potential recapture due to the City’s inability to meet the expenditure deadline established under its subrecipient agreement with the Texas GLO and to allow the Texas GLO to meet the expenditure deadline for its grant award.
- Status2022-FW-1001-001-DOpenClosedClosed on Septiembre 29, 2023
With HUD’s approval of action plan amendment 8, we recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to set performance and financial milestones, including approval of the City’s projects and obligation and expenditure of funds, for all programs and activities funded under the City’s subrecipient agreement through the remainder of the contract and deadlines for the City to achieve those milestones. This requirement would include the Texas GLO’s (1) providing its plan to continually assess whether the City is meeting the established milestones within the prescribed period; (2) taking appropriate action as outlined in the subrecipient agreement for any missed deadlines; and (3) if necessary, determining whether programs need to be combined or eliminated from the subrecipient agreement.
- Status2022-FW-1001-001-EOpenClosedClosed on Septiembre 29, 2023
With HUD’s approval of action plan amendment 8, we recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to provide its plan to ensure that the City will comply with the Texas GLO’s program guidelines and required onsite technical assistance and supportive services. This plan would include (1) precise instructions and deadlines for submitting or resubmitting program and implementation guidelines, (2) terms for settling technical assistance and supportive services disagreements, and (3) appropriate consequences for noncompliance with the requirements the Texas GLO imposes.
2022-KC-0001 | Diciembre 15, 2021
FHA Borrowers Did Not Always Properly Receive COVID-19 Forbearances From Their Loan Servicers
Housing
- Status2022-KC-0001-001-AOpenClosedClosed on Diciembre 15, 2021
Perform data analysis of FHA’s portfolio to identify borrowers who are delinquent and did not fully benefit from the COVID-19 forbearance, including those in bankruptcy;
- Status2022-KC-0001-001-BOpenClosedClosed on Diciembre 15, 2021
Develop a standardized brochure or informational pamphlet that would inform delinquent borrowers of their right to a forbearance under the CARES Act; and
- Status2022-KC-0001-001-COpenClosedClosed on Diciembre 15, 2021$5,430,000,000Funds 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.
Ensure that this information is distributed to delinquent borrowers so it can benefit the greatest number of borrowers to put $5.43 billion to better use by avoiding potential future losses on 112,160 loans.
- Status2022-KC-0001-002-AOpenClosedClosed on Septiembre 19, 2023
Review the 21 loans with improperly administered forbearance to ensure that the borrowers were remedied by the servicers, if possible, and ensure that these servicers updated their forbearance procedures to prevent future noncompliance.
- Status2022-KC-0001-002-BOpenClosedClosed on Septiembre 14, 2022
Ensure that the issues found during our audit are incorporated into QAD’s servicing monitoring reviews.
- Status2022-KC-0001-002-COpenClosedClosed on Septiembre 14, 2022
Provide additional guidance to the servicers so they will limit their communication and collection efforts for the borrowers in forbearance.
2022-PH-0801 | Diciembre 10, 2021
HUD Did Not Always Implement Corrective Actions To Further Ensure That HECM Borrowers Complied With Principal Residency Requirements
Housing
- Status2022-PH-0801-001-AOpenClosed
We recommend that the Office of Single Family Housing coordinate its efforts with the Office of Public and Indian Housing and the Office of Multifamily Housing Programs to further ensure that appropriate controls are in place to prevent HECM borrowers from violating principal residency requirements.
2022-FO-0003 | Diciembre 09, 2021
Audit of FHA’s Fiscal Years 2021 and 2020 Consolidated Financial Statements
Housing
- Status2022-FO-0003-001-AOpenClosedClosed on Junio 16, 2022
Request an opinion from HUD’s Office of the Chief Financial Officer’s Appropriation Law Division on whether the abnormal balance in account 4901 constitutes a violation of the Antideficiency Act.
- Status2022-FO-0003-001-BOpenClosedClosed on Septiembre 30, 2022
Enhance standard operating procedures around system and account reconciliations to ensure that they cover all possible scenarios and are easy to follow.
- Status2022-FO-0003-001-COpenClosedClosed on Septiembre 30, 2022
Appropriately train and monitor new personnel to ensure that they understand and execute the procedures and controls.
- Status2022-FO-0003-001-DOpenClosedClosed on Junio 30, 2022
Update procedures to clearly define error thresholds that require follow-up and the communication process for elevating errors to supervisors, managers, and senior leadership.
- Status2022-FO-0003-001-EOpenClosedClosed on Junio 30, 2022
Establish clear lines of communication within and between divisions to ensure that all personnel become aware of issues that may impact their duties and responsibilities.
- Status2022-FO-0003-001-FOpenClosedClosed on Septiembre 30, 2022
Strengthen controls over the preparation of HECM-related reconciliations, reviews, and oversight by ensuring that (1) program personnel preparing such reconciliations understand how such reconciliations impact financial accounting and reporting and (2) financial personnel sufficiently understand programs and systems to determine their general ledger impact.
- Status2022-FO-0003-001-GOpenClosedClosed on Septiembre 30, 2022
Enhance the quarterly variance analysis to identify the business reasons for changes in account balances and pay specific attention to abnormal balances and activity.
- Status2022-FO-0003-001-HOpenClosedClosed on Septiembre 30, 2022
Strengthen the financial statement review controls by completing a compliance matrix to ensure all balances that are presented and disclosed reflect the most up-to-date financial accounting and reporting guidance.