Research why ARC provided incomplete monthly transactional data and identify a solution to ensure the completeness of future transmissions.
2020-KC-0001 | January 31, 2020
HUD’s Purchase Card Program Had Inaccurate Records, Untimely Training, and Improper Purchases
Chief Procurement Officer
- Status2020-KC-0001-001-EOpenClosed
- Status2020-KC-0001-002-AOpenClosed
Enhance the process to periodically analyze data for split transactions or improper MCCs and follow up on any potential issues identified.
- Status2020-KC-0001-002-BOpenClosed
Require ARC to update its MCC tracking log, to include the amount, the date of MCC override removal, and staff assigned, to ensure that an override is removed after the approved purchase is made.
- Status2020-KC-0001-002-COpenClosed
Implement a process with Citibank and ARC to provide global notifications to cardholders and approving officials before autoclosures of credit card statements.
- Status2020-KC-0001-002-DOpenClosed
Implement a process to suspend cardholders or approving officials who repeatedly cause HUD to pay interest.
- Status2020-KC-0001-002-EOpenClosed$1,807Questioned 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.
Obtain supporting documentation for the $1,807 spent on two cardholders’ purchase cards or require the vendors or cardholders to repay the funds to the applicable HUD program.
2020-LA-1001 | January 31, 2020
Community Action North Bay, Fairfield, CA, Did Not Administer Its Continuum of Care Program in Accordance With HUD Requirements
Community Planning and Development
- Status2020-LA-1001-001-AOpenClosed$577,670Questioned 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 that it met its $161,957 matching contribution required for the $647,827 it drew down for expenses related to its four HUD-funded programs. If the Community cannot provide support, it should reimburse HUD $577,6707 from non-Federal funds.
- Status2020-LA-1001-001-BOpenClosed
Develop and implement written policies and procedures to ensure that it maintains documentation to support matching contributions received in compliance with HUD requirements.
- Status2020-LA-1001-001-COpenClosed$15,163Questioned 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 HUD $15,163 from non-Federal funds for the rental assistance provided to five ineligible individuals.
- Status2020-LA-1001-001-DOpenClosed$26,676Questioned 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 the eligibility of the 11 individuals who received rental assistance through its rapid rehousing program or repay HUD $26,676 from non-Federal funds.
- Status2020-LA-1001-001-EOpenClosed$5,493Questioned 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.
Work with HUD to determine the eligibility of current permanent supportive housing residents and if residents are determined ineligible, take appropriate action.
- Status2020-LA-1001-001-FOpenClosed
Implement its written policies and procedures to ensure that only eligible individuals receive rapid rehousing assistance.
- Status2020-LA-1001-001-GOpenClosed
Implement its written policies and procedures to ensure that individuals entering its permanent supportive housing are eligible.
- Status2020-LA-1001-001-HOpenClosed$17,025Questioned 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 repay HUD $17,025 from non-Federal funds for the questioned payroll costs charged to the programs.
- Status2020-LA-1001-001-IOpenClosed
Develop and implement written policies and procedures to ensure accurate and complete reporting of staff hours charged to each program.
- Status2020-LA-1001-001-JOpenClosed$8,605Questioned 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 the validity of its indirect cost allocations or repay HUD $8,605 from non-Federal funds.
- Status2020-LA-1001-001-KOpenClosed
Develop and implement an indirect cost allocation plan, which ensures that indirect costs are charged to the correct program.
- Status2020-LA-1001-001-LOpenClosed
Provide technical assistance to the Community to ensure that its staff receives training on documentation of matching contributions and the use of program funds.
- Status2020-LA-1001-002-AOpenClosed$28,576Funds 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 the $28,576 as program income to the specific permanent supportive housing program that generated it and ensure these funds are used for that specific program.
- Status2020-LA-1001-002-BOpenClosed
Develop and implement written policies and procedures to ensure that all program income is recorded and used in accordance with HUD requirements.