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Report Fraud, Waste and Abuse
  • Recommendation Number: 2019-BO-1004-001-D
  • Status: Closed
  • Date Issued: September 09, 2019
Closed Date:
January 29, 2021

Strengthen controls to ensure that project advances are reimbursed only when the project is in a surplus-cash position.

Publication Report

2019-BO-1004 | September 09, 2019

Tuscan Homes I and II in Hartford, CT, Was Not Always Managed in Accordance With Its Regulatory Agreement and HUD Requirements

We audited Tuscan Homes I and II, a multifamily project located in Hartford, CT, because our risk assessment ranked the project as the highest risk multifamily project in New England.  Our audit objective was to determine whether the owner managed… more

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-A
    Closed on September 30, 2020
    $17,761.00
    Questioned 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 $17,761 from nonproject funds for the project operating funds disbursed for ineligible expenses.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-B
    Closed on September 30, 2020
    $17,653.00
    Questioned 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.

    Support or reimburse the project $17,653 from nonproject funds for the project operating funds disbursed without sufficient supporting documentation.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-C
    Closed on January 29, 2021
    $45,000.00
    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.

    Reclassify and properly record $45,000 in owner advances misclassified as loans.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-E
    Closed on February 08, 2021

    Implement adequate controls to ensure the review of the management agent fee to ensure that it is properly calculated in accordance with the HUD management agent certification and approved prior to payment from project operating funds.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-F
    Closed on January 29, 2021

    Implement adequate controls to ensure that project funds are used only for eligible and supported operating expenses.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-G
    Closed on February 12, 2021

    Obtain a formal agreement and approval from HUD to specify who is authorized to use the project’s community and recreation rooms and what activities are authorized or prohibited. In addition, this agreement must ensure that sufficient legal and liability protections are in place, establish consequences for noncompliance, and determine who is to pay for the utilities and maintenance of the rooms.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-H
    Closed on January 29, 2021

    Amend the management agent agreement compensation schedule to remove bookkeeping fees as a fee separate from the 8.9 percent management agent fee.