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Report Fraud, Waste and Abuse
2018-CH-1010-001-E
Status
Closed
Date Issued
September 30, 2018
Closed Date
November 04, 2021
OIG Component Office
Audit
Determine whether appropriate reimbursements were made to the subcontractor for the remaining 166 assisted units that were not a part of our review. If the Department determines that appropriate reimbursements were not made, it should provide support that the lead-based paint and other health hazard control activities are Program eligible and the subcontractor was not reimbursed for these activities from non-Program funds. If these conditions have been met, the Department should reimburse the subcontractor from Program funds.
Program Office
Lead Hazard Control
Questioned Costs
$0.00
Better Funds Use
$0.00
Publication Report Number
2018-CH-1010
Publication Report
The City of Chicago’s Department of Public Health, Chicago, IL, Did Not Administer Its Lead Hazard Reduction Demonstration Grant Program in Accordance With HUD’s and Its Own Requirements

Related Recommendations

Recomendation Status Date Issued Summary
2018-CH-1010-001-A Closed September 30, 2018 Support that grant administration services paid were cost reasonable or reimburse its Program $387,443 from non-Federal funds.
2018-CH-1010-001-B Closed September 30, 2018 Reimburse its Program $102,069 from non-Federal funds for the duplicate payments made to its subcontractor for lead-based paint and other health hazard control activities.
2018-CH-1010-001-C Closed September 30, 2018 Coordinate with HUD’s Office of Lead Hazard Control and Healthy Homes to determine whether $88,258 in Program funds ($77,597 $10,661) may be drawn down and used to reimburse its subcontractor if the lead-based paint and other health hazard control activities are determined to be eligible.
2018-CH-1010-001-D Closed September 30, 2018 Determine whether the subcontractor is owed payment for 21 units, which the Department’s records showed were assisted under the Program but were not identified as assisted units according to documentation maintained by the Department to support its drawdowns from HUD’s LOCCS. If the Department determines that the subcontractor is owed payment for the lead-based paint and other health hazard control activities, it should provide support that the lead-based paint and other health hazard control activities were eligible and that the subcontractor was not reimbursed for these activities from non-Program funds. If these conditions have been met, the Department should reimburse the subcontractor from Program funds.
2018-CH-1010-001-F Closed September 30, 2018 Support that the four households residing in assisted units were income eligible or reimburse its Program $59,883 from non-Federal funds for the lead-based paint and other health hazard control activities completed in the assisted units.
2018-CH-1010-001-G Closed September 30, 2018 Support that landlords gave preference in renting six vacant units to families with children under 6 years of age or reimburse its Program $41,240 from non-Federal funds for the lead-based paint and other health hazard control activities completed at these assisted units.
2018-CH-1010-001-H Closed September 30, 2018 Support that lead-based paint hazard control activities were necessary at 13 assisted units or reimburse its Program $23,857 from non-Federal funds for the unsupported lead-based paint hazard control activities completed at these assisted units.
2018-CH-1010-001-I Closed September 30, 2018 Reimburse its Program $2,900 from non-Federal funds for the two units in which the seven windows were not installed.
2018-CH-1010-001-J Closed September 30, 2018 Transfer $17,507 in non-Federal funds to its Childhood Lead Poisoning Prevention Program and use the funds in accordance with the program grant requirements since these funds were not recaptured after the four assisted units were sold within 3 years.
2018-CH-1010-001-K Closed September 30, 2018 Execute agreements with owners of the assisted units detailing the Department’s recapture policy and determine whether liens should be filed with the appropriate government office to ensure that Program funds used to assist the units are properly protected and able to be recaptured if assisted units are resold within 3 years. These protections should ensure that $297,924 in Program funds is adequately protected.
2018-CH-1010-001-L Closed September 30, 2018 Implement adequate procedures and controls to ensure that (1) contracts are properly procured in accordance with HUD’s requirements, (2) annual income is properly calculated for households residing in assisted units, (3) the appropriate reimbursement payments are made to the subcontractor for lead-based paint and other health hazard control activities, (4) lead inspection results properly support lead-based paint hazard control activities, (5) it complies with its work plan regarding executing agreements with property owners and determining whether other mechanisms are needed to enforce the agreements. This measure would ensure that future Program funds are protected, and (6) accurate and complete information regarding assisted units is reported to HUD.
2018-CH-1010-001-M Closed September 30, 2018 Develop and implement adequate procedures and controls to ensure that assisted rental units are prioritized for families with children under 6 years of age.