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Date Issued
September 06, 2018
Closed Date
July 22, 2020
OIG Component Office
Put all project bank accounts in the name of the project.
Program Office
Questioned Costs
Better Funds Use
Publication Report Number

Related Recommendations

Recomendation Status Date Issued Summary
2018-DE-1001-001-B Closed September 06, 2018 Separate all owner bank accounts from the project’s bank accounts.
2018-DE-1001-001-C Closed September 06, 2018 Develop and implement controls over the distinction between project funds and owner funds. These controls should include policies related to when the owner is allowed to take project funds owed to the owner.
2018-DE-1001-001-D Closed September 06, 2018 Take HUD-approved training related to operating and maintaining a multifamily project.
2018-DE-1001-002-A Closed September 06, 2018 Repay the project’s operating account from nonproject funds for the $142,805 spent on ineligible expenses.
2018-DE-1001-002-B Closed September 06, 2018 Provide support for the $12,355 in project funds spent to pay individuals who were not on the payroll and for services provided for project operations. For any portion of this amount that is not supported, the owner should repay the project operating account using nonproject funds.
2018-DE-1001-002-C Closed September 06, 2018 Obtain training on the eligible use of project funds.
2018-DE-1001-002-D Closed September 06, 2018 Develop and implement detailed policies and procedures for procurement, travel, and the use of its credit cards. These controls should comply with HUD regulations regarding procurement and other disbursement documentation requirements.
2018-DE-1001-003-A Closed September 06, 2018 Submit any outstanding audited financial statements.
2018-DE-1001-003-B Closed September 06, 2018 Review the audited financial statements and determine the amount of outstanding mortgage payments due.
2018-DE-1001-003-C Closed September 06, 2018 Work with the local multifamily office to make any outstanding mortgage payments or devise a plan to bring the property current through the use of available funds.
2018-DE-1001-003-D Closed September 06, 2018 Develop and implement policies and procedures to ensure that the certified public accountant submits audited financial statements by the required HUD deadline.
2018-DE-1001-003-E Closed September 06, 2018 Maintain separate books of account and submit audited financial statements solely for the project.
2018-DE-1001-004-A Closed September 06, 2018 Reimburse the project’s operating account $50,400 from the reserve for replacement account.
2018-DE-1001-004-B Closed September 06, 2018 Receive training on the proper use of its reserve for replacement account.
2018-DE-1001-004-C Closed September 06, 2018 Develop and implement policies and procedures for the use of reserve for replacement funds, which ensure that the project does not use operating funds for any items that qualify for the use of reserve for replacement funds.