Reimburse its program $153,222 from non-Federal funds for the housing assistance paid for the 50 units that materially failed to meet HUD’s housing quality standards and its own requirements.
2019-CH-1001 | December 20, 2018
The Housing Authority of the City of North Chicago, North Chicago, IL, Did Not Always Comply With HUD’s Requirements and Its Own Policies Regarding the Administration of Its Housing Choice Voucher Program
Public and Indian Housing
- Status2019-CH-1001-001-BOpenClosed$153,222Questioned 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.
- Status2019-CH-1001-001-COpenClosed$15,796Questioned 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 its program $15,796 from non-Federal funds for administrative fees earned for the 50 units that materially failed to meet HUD’s housing quality standards and its own requirements.
- Status2019-CH-1001-001-DOpenClosed
Ensure that its staff is properly trained and familiar with HUD’s and its own requirements regarding housing quality standards inspections.
- Status2019-CH-1001-001-EOpenClosed$1,236,000Funds 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.
Implement adequate procedures and controls to ensure that all units meet HUD’s housing quality standards and its own requirements to prevent $1,236,000 in program funds from being spent on units that do not comply with HUD’s requirements over the next year. The procedures should include but not be limited to ensuring that inspectors are properly trained and familiar with HUD’s and the Authority’s requirements and that they consistently conduct accurate and complete inspections and reinspections.
- Status2019-CH-1001-002-AOpenClosed$93,651Questioned 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 its program $93,651 from non-Federal funds for the missing required eligibility documentation.
- Status2019-CH-1001-002-BOpenClosed$76Questioned 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 its program $76 from non-Federal funds for the overpayment of housing assistance due to inappropriate calculations of housing assistance.
- Status2019-CH-1001-002-COpenClosed$2,193Funds 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.
Reimburse the appropriate households $2,193 from program funds for the underpayment of housing assistance due to inappropriate calculations.
- Status2019-CH-1001-002-DOpenClosed$9,870Questioned 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 its program $9,870 ($7,663 $2,207) from non-Federal funds for the administrative fees it inappropriately earned for the missing required eligibility documentation and inappropriate calculations of housing assistance.
- Status2019-CH-1001-002-EOpenClosed
Implement adequate procedures and controls to ensure that the required documentation to support household eligibility is obtained and maintained and housing assistance payments are appropriately calculated.
- Status2019-CH-1001-002-FOpenClosed
Review the utility allowance schedules to ensure that all applicable utilities are provided to the households and that the utility allowances are based on the lower of the voucher size or unit size in accordance with HUD’s requirements.
2019-FO-0003 | November 15, 2018
Additional Details To Supplement Our Fiscal Years 2018 and 2017 (Restated) U.S. Department of Housing and Urban Development Financial Statement Audit
Public and Indian Housing
- Status2019-FO-0003-002-MOpenClosed
Design and implement a policy or procedure that ensures the accuracy of all information provided to HUD OCFO related to the PIH prepayment estimation methodology.
- Status2019-FO-0003-005-IOpenClosed$588,694Funds 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.
Deobligate all obligations marked for deobligation during the departmentwide OOR, including as much as $588,694 in 12 administrative obligations marked for deobligation as of September 30, 2018.
- Status2019-FO-0003-005-JOpenClosed$78,069Funds 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.
Review the three identified retained inactive obligations with remaining balances totaling $78,069 and close out and deobligate amounts tied to obligations that are no longer valid or needed.
2018-AT-0801 | September 28, 2018
HUD’s Improper Approvals Resulted in Invalid Exemptions and an Ineligible Capital Funds Expenditure for the Lexington-Fayette Urban County Housing Authority
Public and Indian Housing
- Status2018-AT-0801-001-AOpenClosed$1,385,791Questioned 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.
Ensure that $1,385,791 ($1,229,684 in housing assistance payments and $156,107 in associated administrative fees) used by the Lexington-Fayette Urban County Housing Authority is supported through a valid and retroactive exemption from HUD’s third-party requirements. If a retroactive exemption cannot be issued, HUD should follow recovery procedures prescribed in HUD Handbook 2000.06, REV-4.
- Status2018-AT-0801-001-BOpenClosed
Revise the standard MTW agreement for all existing 39 MTW housing agencies to clearly and specifically support which provision(s) waive the third-party inspection requirements.
- Status2018-AT-0801-001-COpenClosed
Issue clarifying guidance to all existing 39 MTW housing agencies advising that HUD intended to waive the third-party inspection requirements via attachment C to the standard agreement.
- Status2018-AT-0801-001-DOpenClosed
Ensure that reviews of MTW annual plans are thorough by verifying that the MTW plan accurately identifies the appropriate exemptions as authorized in the MTW agreements.
- Status2018-AT-0801-001-EOpenClosed
Verify that the Office of Public Housing Investments’ approvals of all MTW public housing agencies’ MTW plans’ exemptions from HUD’s third-party requirements were valid and appropriate.
- Status2018-AT-0801-001-FOpenClosed$38,411Questioned 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.
Require the Authority to reimburse its Public Housing Capital Fund program $38,411 from nonproject funds for the inappropriate use of funds for the Section 8 Project-Based Voucher Program units.
- Status2018-AT-0801-001-GOpenClosed
Ensure that the Louisville, KY, PIH field office sends to the Office of Recapitalization any requests it receives for approving capital funds expenditures after the RAD conversion is complete.