Implement adequate policies and procedures for conducting complete and consistent monitoring of subrecipients’ matching requirements, including confirming eligibility and existence of matching funds to ensure compliance with HUD’s requirements.
2017-AT-1013 | Septiembre 28, 2017
The City of Chattanooga, TN, Did Not Always Administer Its ESG Program in Accordance With HUD’s Requirements
Community Planning and Development
2017-AT-1013-001-E
Closed on Agosto 02, 2018
2017-CH-1008 | Septiembre 28, 2017
Travelers Aid Society of Metropolitan Detroit, Detroit, MI, Did Not Always Administer Its Continuum of Care Program in Accordance With Federal Regulations
Community Planning and Development
2017-CH-1008-001-A
Closed on Agosto 30, 2018$1,776,381Questioned CostsRecommendations 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.
Support that it met its $526,170 matching contribution requirement associated with the more than $2.1 million in program funds it drew down for supportive services and administrative expenses. If Travelers Aid cannot provide sufficient support, it should reimburse HUD $1,776,381 from non-Federal funds.
2017-CH-1008-001-B
Closed on Octubre 30, 2018$305,936Questioned CostsRecommendations 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.
Support or reimburse HUD from non-Federal funds for the $305,936 in program administrative funds for which it did not provide sufficient documentation to support that the funds were used for eligible administrative expenses associated with the project for which the funds were drawn.
2017-CH-1008-001-C
Closed on Octubre 30, 2018$170,995Questioned CostsRecommendations 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.
Support or reimburse HUD from non-Federal funds for the $170,995 in program income for which it did not provide sufficient documentation to support that the funds were used for the project that generated the income ($147,534) and for eligible activities ($23,461).
2017-CH-1008-001-D
Closed on Octubre 30, 2018$54,770Questioned CostsRecommendations 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.
Support or reimburse HUD from non-Federal funds for the $54,770 in program funds for which it did not provide sufficient documentation to support that the funds were used for eligible project expenses for supportive services ($26,036) and leasing ($28,734).
2017-CH-1008-001-E
Closed on Junio 13, 2018$1,165Questioned CostsRecommendations 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 HUD from non-Federal funds for the $1,165 in program funds used for improper supportive service expenses.
2017-CH-1008-001-F
Closed on Junio 13, 2018Implement adequate procedures and controls to ensure that it maintains sufficient documentation to support that matching contributions, program funds, and program income are accounted for and used in accordance with Federal regulations and it uses program funds for the projects in accordance with Federal regulations.
2017-CH-1008-001-G
Closed on Junio 04, 2018Provide technical assistance to Travelers Aid to ensure that its staff is adequately trained on how to account for and use matching contributions, program funds, and program income in accordance with Federal regulations.
2017-LA-1803 | Septiembre 28, 2017
RMS & Associates, Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
Housing
2017-LA-1803-001-A
Closed on Marzo 06, 2019$2,460,446Funds Put to Better UseRecommendations 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.
Work with HUD to nullify the restrictions on conveyance that violate HUD policy or indemnify HUD. This action will protect HUD against future losses of $2,434,204 for the 49 loans.
2017-LA-1803-001-B
Closed on Enero 05, 2018$26,242Questioned CostsRecommendations 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 HUD $26,242 for partial claims paid on two FHA loans that contained prohibited restrictive covenants.
2017-LA-1803-001-C
Closed on Febrero 27, 2019Develop and implement policies and procedures to identify prohibited restrictions on conveyance to ensure that it does not originate FHA loans with prohibited restrictive covenants.
2017-LA-1803-001-D
Closed on Febrero 27, 2019Provide training to its employees regarding HUD’s requirements related to prohibited restrictions on conveyance.
2017-CH-1007 | Septiembre 28, 2017
The Menard County Housing Authority, Petersburg, IL, Did Not Comply With HUD’s and Its Own Requirements Regarding the Administration of Its Housing Choice Voucher Program
Public and Indian Housing
2017-CH-1007-001-A
Closed on Septiembre 11, 2023$373,860Questioned CostsRecommendations 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 its program $373,860 ($302,638 in ineligible housing assistance payments $63,643 in associated administrative fees $7,579 in program funds paid to the contractor) from non-Federal funds for the inappropriate payments cited in this finding.
2017-CH-1007-001-B
Closed on Septiembre 11, 2023$358,237Questioned CostsRecommendations 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.
Seek retroactive approval or reimburse its program $358,237 ($339,908 in housing assistance payments $18,329 in program funds paid to the contractor) for the housing quality standards inspections of units owned by entities substantially controlled by the Authority, completed by contractors that were not approved by HUD.
2017-CH-1007-001-C
Closed on Abril 16, 2019Implement adequate procedures and controls to ensure that the Authority complies with HUD’s requirements for program conflicts of interest, including but not limited to ensuring that (1) its staff does not complete inspections for units owned by entities substantially controlled by the Authority, (2) its staff is appropriately trained and familiar with HUD’s requirements for units owned by entities it substantially controls, and (3) future contracts to perform housing quality standards inspections for program units owned by entities substantially controlled by the Authority are with a HUD-approved independent third party.
2017-CH-1007-002-A
Closed on Septiembre 06, 2023$163,316Questioned CostsRecommendations 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 its program $163,316 from non-Federal funds ($29,074 in housing assistance due to calculation errors 74,957 due to inappropriate voucher sizes, payment standards, and utility allowances $18,141 $41,144 in administrative fees) for the inappropriate payments cited in this finding.
2017-CH-1007-002-B
Closed on Julio 09, 2019$9,280Funds Put to Better UseRecommendations 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.
Reimburse the appropriate households $9,280 ($2,588 in housing assistance underpayments due to calculation errors $6,692 due to inappropriate voucher sizes, payment standards, and utility allowances) from program funds for the inappropriate underpayments cited in this finding.
2017-CH-1007-002-C
Closed on Septiembre 27, 2019$2,533Questioned CostsRecommendations 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.
Support or reimburse its program $2,533 from non-Federal funds for the unsupported payments of housing assistance cited in this finding.
2017-CH-1007-002-D
Closed on Septiembre 27, 2019$470Questioned CostsRecommendations 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.
Pursue collection from the applicable households or reimburse its program $470 from non-Federal funds for the overpayment of housing assistance due to unreported or underreported income.
2017-CH-1007-002-E
Closed on Noviembre 26, 2018$3,178Questioned CostsRecommendations 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 appropriate households $3,178 from non-Federal funds for the rent amount paid in excess of 40 percent of the adjusted monthly income for the units that were not affordable.