Develop and implement policies and procedures to ensure that the certified public accountant submits audited financial statements by the required HUD deadline.
Publication Report
2018-DE-1001 | September 06, 2018
Meeker Housing Authority, Meeker, CO, Improperly Used Project Operating Funds for Its 221(d)(3) Multifamily Housing Insurance Program
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Meeker Family and Elderly Housing project based on a referral from HUD’s Office of Multifamily Housing Programs in Denver, CO. The project is… moreRelated Recommendations
Housing
Put all project bank accounts in the name of the project.
Separate all owner bank accounts from the project’s bank accounts.
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.
Take HUD-approved training related to operating and maintaining a multifamily project.
- Status2018-DE-1001-002-AOpenClosedClosed on December 16, 2021$142,805.00Questioned Costs
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.
Repay the project’s operating account from nonproject funds for the $142,805 spent on ineligible expenses.
- Status2018-DE-1001-002-BOpenClosedClosed on August 17, 2020$12,355.00Questioned Costs
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.
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.
Obtain training on the eligible use of project funds.
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.
Submit any outstanding audited financial statements.
Review the audited financial statements and determine the amount of outstanding mortgage payments due.
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.
Maintain separate books of account and submit audited financial statements solely for the project.
- Status2018-DE-1001-004-AOpenClosedClosed on August 14, 2020$50,400.00Questioned Costs
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.
Reimburse the project’s operating account $50,400 from the reserve for replacement account.
Receive training on the proper use of its reserve for replacement account.
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.