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Funds Put to Better Use
Funds 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.
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.
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
We 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.
2023-CH-1002 | Mayo 24, 2023
Public and Indian Housing
2023-CH-1002-001-C$48,310We recommend that the Director of HUD’s Cleveland Office of Public Housing require the Authority to support the $48,310 in excess costs paid for landscaping services or reimburse its program from non-Federal funds.
2023-CH-1002-001-BWe recommend that the Director of HUD’s Cleveland Office of Public Housing require the Authority to Support the reasonableness of the amounts paid for the two noncompetitively awarded contracts (0917 and 1125) that lacked adequate support for the independent cost estimate and price analysis or repay its Public Housing Operating Fund or Capital Fund program from non-Federal funds for any amount determined not to be reasonable.
2023-CH-1002-001-A$80,685We recommend that the Director of HUD’s Cleveland Office of Public Housing require the Authority to Support the reasonableness of $80,685 paid to a vendor for pest control services without a valid contract or repay its Public Housing Operating Fund or Capital Fund program from non-Federal funds for any amount determined not to be reasonable.
2023-CH-0003 | Mayo 23, 2023
Public and Indian Housing
Implement adequate policies, procedures, and controls to ensure that public housing properties will be inspected within required timeframes.
NSPIRE regulations clarified/modified the timing for which inspections should occur. The date for inspection of each public housing property must then be programmed into HUD's system to ensure that inspections occur within required timeframes. The Real Estate Assessment Center (REAC) continues to work with its management and system support contractors on the list of public housing properties to inspect and the date the inspections should be completed by under the new NSPIRE regulations. REAC is in the process of adjusting the list based on information relating to small, rural public housing. REAC believes that it is on track to meet the final action target date of May 31, 2024.
To fully address this recommendation, HUD must provide evidence demonstrating that it has implemented control activities that ensure public housing properties are inspected within required timeframes.
Implementation of this recommendation will result in HUD accurately tracking the dates in which public housing properties should be inspected and that they are timely completed.
2023-CH-0003-001-APrioritize the inspection of public housing properties that were (1) not included in the NSPIRE demonstration but were identified as high priority under the Center’s Big Inspection Plan and (2) approved to participate under the NSPIRE demonstration that the Center was unable to inspect by March 31, 2023.
2023-FO-0009 | Mayo 22, 2023
Chief Financial Officer
2023-FO-0009-002-CClosed on Septiembre 29, 2023Reassess the Homeless Assistance Grants program as part of the fiscal year 2023 risk assessment.
2023-FO-0009-002-BClosed on Septiembre 29, 2023Until program-specific fraud risk assessments are completed, revise the PIIA fraud risk questionnaire process to compensate for the lack of program-specific fraud risk assessments.
2023-FO-0009-002-AClosed on Septiembre 29, 2023Reevaluate the methodology and reassess the weight assigned to each risk factor to ensure that appropriate weight is given to risks associated with non-Federal administrators or consider doing one risk assessment for HUD’s internal payment cycle and another risk assessment for the non-Federal entities that administer HUD’s program funds.
2023-FO-0009-001-CClosed on Septiembre 29, 2023Develop a secure platform for the collection and storage of PIIA data that contain PII and formally assign a staff with adequate training and skillsets to administer the data and application (including maintaining and managing access controls of a chosen application that will be used to store the PIIA data with PII).
2023-FO-0009-001-BDevelop and complete a detailed plan and timeline for completing compliant PIH-TBRA and PBRA program estimates and ensure that the improper payment council prioritizes completion of the plan in time for fiscal year 2023 reporting.
Establish an improper payment council within HUD that consists of senior accountable officials from across the Department with a role in the effort that would work to identify risks and challenges to compliance and identify solutions as a collaborative group.
HUD agreed to capture and monitor the risks related to improper payment compliance through the Risk Management Council (RMC), chaired by the HUD Deputy Secretary, which meets quarterly. Consistent with guidance issued by the GAO in June 2023 (GAO-23-106585), HUD will assign Senior Accountable Officials at the Program Office level. While we are generally agreeable to this being handled through the Risk Management Council, we informed HUD that we needed assurance that the Risk Management Council will accept this as a risk and work on it in the immediate future. We communicated our position to OCFO who agreed to update the proposed language and include as evidence deliverables from the Chief Risk Officer showing that this risk is being worked on. However, OCFO has not yet updated they’re corrective action plan to reflect our agreement. As of January 2, 2024, we do not have official agreement on HUD’s corrective actions, and therefore do not have a final action target date.
To fully address this recommendation, HUD must provide evidence that it has established a process by which the Risk Management Counsel (RMC) has accepted that improper payment compliance as a risk, identifies sub-risks and challenges to achieving compliance, identifies solutions to those risks and challenges, and provide evidence that the RMC is implementing the solutions that will position HUD towards compliance.
Implementation of this recommendation will result in HUD better safeguarding taxpayer dollars and decrease improper payments.
2023-FW-0002 | Mayo 17, 2023
Community Planning and Development
2023-FW-0002-001-HWe recommend that the Director for HUD’s Office of Disaster Recovery provide training to grantees regarding the reporting, tracking, and expenditure of program income.
2023-FW-0002-001-GWe recommend that the Director for HUD’s Office of Disaster Recovery develop and implement controls to ensure that grantees’ policies and procedures related to program income are adequate.
2023-FW-0002-001-FWe recommend that the Director for HUD’s Office of Disaster Recovery implement quality control procedures to ensure that HUD staff completes the action plan and QPR checklists.
2023-FW-0002-001-EWe recommend that the Director for HUD’s Office of Disaster Recovery establish a mechanism to train grantees and HUD staff on existing guidance regarding supporting documentation for expenditures, FFRs, and program income balances on a recurring basis. Additionally, provide guidance and establish recurring training for HUD staff to monitor grantees for program income and submission of the FFRs..
2023-FW-0002-001-DWe recommend that the Director for HUD’s Office of Disaster Recovery develop and implement controls to ensure that untimely FFRs are identified and corrected.
2023-FW-0002-001-CWe recommend that the Director for HUD’s Office of Disaster Recovery develop and implement controls to ensure that program income balance discrepancies are identified and corrected.
2023-FW-0002-001-BWe recommend that the Director for HUD’s Office of Disaster Recovery work with its grantee to resolve or correct program income balances for the three grants that had program income balances outstanding.
2023-FW-0002-001-A$2,551,375We recommend that the Director for HUD’s Office of Disaster Recovery require grantees to support or repay to its program $2,551,375, from nonfederal funds, for the 9 vouchers that did not have adequate supporting documentation for expenditures.
2023-NY-0002 | Mayo 15, 2023
2023-NY-0002-001-JConsider evaluating whether and how a similar policy for disasters or emergencies or a permanent version of the policy could be used to manage risk to the insurance fund while increasing lender participation. This should include further studying lenders’ use of the policy and the long-term performance of loans endorsed under it. It could also include reviewing the compliance, guidance, and process issues identified during this audit and through the resolution of the other recommendations to refine any future endorsement policies related to forbearance.