Develop and implement a procedure to verify all information presented in HUD’s consolidated financial statement note disclosures with its standalone note disclosures before certifying HUD’s statements and notes.

Deobligate all obligations marked for deobligation during the departmentwide OOR, including as much as $51,396,319 in 735 administrative obligations and $5,350,112 in 68 program obligations marked for deobligation as of September 30, 2018.

Review the 65 identified inactive retained obligations with remaining balances totaling $4,310,534 and close out and deobligate amounts tied to obligations that are no longer valid or needed

Develop technical reestimates for the EHLP direct loan portfolio annually in accordance with the requirements in OMB Circular A-11, section 185, and submit the reestimates to OCFO and ARC for recording.

Revise its quarterly tie point analysis to include a check for all of its budgetary accounts.

Correct the impact of all of the modeling errors identified in this report.

Revise the modeling policies and procedures to use the established HECM loan limits in the HECM LLG cash flow model.

Develop alternative policies and procedures that would enable the use of the final single-family LLG cash flow model results and HECM return on notes cash flow model results in the final ROA models.

Reassess the HECM assumption that mortgages with an unpaid principal balance greater than the maximum claim amount will not be assigned to HUD and perform the following: (1) compare this assumption to historical experience, (2) document the basis for selecting the assumption as opposed to alternative assumptions, and (3) determine the impact of this assumption and the associated risk.

Reassess the model design that was implemented to avoid the double counting of the cash flows for HECM mortgages in the LLG cash flow and ROA models and perform the following: (1) determine whether there are alternative methodologies that will not result in the exclusion of cash flows in both models, (2) document the basis of the selected methodology, and (3) determine the impact and risk of the selected methodology.

Restate the fiscal year 2017 financial statements to correct the impact of using the improper discounting methodology in the HECM ROA model in fiscal year 2017.

Implement an automated subsidiary ledger system with the capability of obtaining loan-level transaction data from FHA, Treasury, and FFB source systems.

Work with Treasury and FFB to receive monthly loan-level transaction reports.

Identify the cause for the accrued interest differences and determine the correct accounting treatment.

Establish policies and procedures for recording and accounting for manual transactions, including the accounting rationale for the principal and interest on the direct loans and accrued interest on the borrowings.

Correct the error related to the allocation of the liquidating reestimates in fiscal years 2017 and 2018.

Restate salary and administrative costs on FHA’s fiscal year 2017 statement of net cost, statement of net position, and footnote disclosures.

Require FHA and HUD OCFO to work together to determine a policy and procedure to ensure that both parties receive and provide complete information related to salaries and administrative costs.

Establish and implement a review process for salary and administrative cost information that is received from HUD OCFO to ensure that the information is complete and accurate.

Ensure that $399.1 million identified as invalid obligations in fiscal year 2018 is deobligated as appropriate.