We recommend that the Office of Single Family Housing coordinate its efforts with the Office of Public and Indian Housing and the Office of Multifamily Housing Programs to further ensure that appropriate controls are in place to prevent HECM borrowers from violating principal residency requirements.
2022-PH-0801 | December 10, 2021
HUD Did Not Always Implement Corrective Actions To Further Ensure That HECM Borrowers Complied With Principal Residency Requirements
Housing
- Status2022-PH-0801-001-AOpenClosedClosed on May 28, 2025
2022-FO-0003 | December 09, 2021
Audit of FHA’s Fiscal Years 2021 and 2020 Consolidated Financial Statements
Housing
- Status2022-FO-0003-001-AOpenClosedClosed on June 16, 2022
Request an opinion from HUD’s Office of the Chief Financial Officer’s Appropriation Law Division on whether the abnormal balance in account 4901 constitutes a violation of the Antideficiency Act.
- Status2022-FO-0003-001-BOpenClosedClosed on September 30, 2022
Enhance standard operating procedures around system and account reconciliations to ensure that they cover all possible scenarios and are easy to follow.
- Status2022-FO-0003-001-COpenClosedClosed on September 30, 2022
Appropriately train and monitor new personnel to ensure that they understand and execute the procedures and controls.
- Status2022-FO-0003-001-DOpenClosedClosed on June 30, 2022
Update procedures to clearly define error thresholds that require follow-up and the communication process for elevating errors to supervisors, managers, and senior leadership.
- Status2022-FO-0003-001-EOpenClosedClosed on June 30, 2022
Establish clear lines of communication within and between divisions to ensure that all personnel become aware of issues that may impact their duties and responsibilities.
- Status2022-FO-0003-001-FOpenClosedClosed on September 30, 2022
Strengthen controls over the preparation of HECM-related reconciliations, reviews, and oversight by ensuring that (1) program personnel preparing such reconciliations understand how such reconciliations impact financial accounting and reporting and (2) financial personnel sufficiently understand programs and systems to determine their general ledger impact.
- Status2022-FO-0003-001-GOpenClosedClosed on September 30, 2022
Enhance the quarterly variance analysis to identify the business reasons for changes in account balances and pay specific attention to abnormal balances and activity.
- Status2022-FO-0003-001-HOpenClosedClosed on September 30, 2022
Strengthen the financial statement review controls by completing a compliance matrix to ensure all balances that are presented and disclosed reflect the most up-to-date financial accounting and reporting guidance.
- Status2022-FO-0003-002-AOpenClosedClosed on September 30, 2022
Perform a comprehensive analysis for all cohort years and assess the impact that the use of the scheduled UPB instead of the current UPB has on the LGL. If significant based on a quantitative threshold, update the SF cash flow model to incorporate the current UPB data.
- Status2022-FO-0003-002-BOpenClosedClosed on September 30, 2022
Develop and implement a new process to require the annual validation of the fourth quarter endorsement volume estimation method for the SF Forward model. The process should include a management review and approval control component. The process should be documented and should demonstrate that management’s estimate is based on the analysis of past experiences, current policy, and market considerations, and, if necessary, incorporate improvement recommendations.
- Status2022-FO-0003-002-COpenClosedClosed on September 30, 2022
Perform a comprehensive review of the SF and HECM model documentation and update the specific sections with the current practices and procedures required to execute the model activities.
- Status2022-FO-0003-002-DOpenClosedClosed on September 30, 2022
Establish a process that requires the timely review and update of model documentation. The process should include tracking the dates and nature of the revisions.
- Status2022-FO-0003-002-EOpenClosedClosed on June 15, 2022
Provide training and periodic reminders to field staff and management to ensure that the data fields in DAP and on the final Form HUD-290 are accurate and consistent.
- Status2022-FO-0003-002-FOpenClosedClosed on June 29, 2022
Develop and implement written procedures that provide guidance or best practices that should be followed to address data anomalies. At a minimum, these written procedures should include the following: (1) a process for identifying key data attributes that significantly impact the results, (2) the determination of preset thresholds for analyst and management attention, (3) the treatment of data anomalies, such as null values or values that exceed preset thresholds, (4) a process for providing feedback to the upstream data provider(s) for corrective and preventive actions when data integrity issues are detected and management concludes the issue is significant, and (5) a process for preparing documentation to support management decisions.
2021-FW-1003 | September 29, 2021
The Bay City Housing Authority, Bay City, TX, Did Not Follow Requirements for Its Legal Services Contract, Administrative Costs, and Board Meetings
Public and Indian Housing
- Status2021-FW-1003-001-AOpenClosed$5,000Questioned 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.
Closed on March 23, 2023We recommend that the Director of HUD’s Houston Office of Public Housing require the Authority to reimburse its Public Housing Operating Fund $5,000 from non-Federal funds for the unrecovered remaining balance of the $20,000 that was paid to the attorney.
- Status2021-FW-1003-001-BOpenClosed$24,250Funds 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.
Closed on January 26, 2022We recommend that the Director of HUD’s Houston Office of Public Housing require the Authority to ensure that no Federal funds are used to pay the remaining legal services invoices totaling $24,250, which will result in these funds being put to better use.
- Status2021-FW-1003-001-COpenClosedClosed on January 26, 2022
We recommend that the Director of HUD’s Houston Office of Public Housing require the Authority to update its policies to ensure the future commissioners obtain training on Texas’ Open Meetings Act requirements and HUD’s training for commissioners within 90 days after appointment, which will ensure that future commissioners understand the requirements for board meetings and procurement actions.
- Status2021-FW-1003-001-DOpenClosedClosed on February 08, 2023
We also recommend that the Director of HUD’s Houston Office of Public Housing evaluate the reported actions the three commissioners took when procuring the legal services contract and, if warranted, pursue administrative sanctions or other corrective actions.
- Status2021-FW-1003-002-AOpenClosed$2,172Questioned 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.
Closed on March 23, 2023We recommend that Director of the Houston Office of Public Housing require the Authority to Reimburse its low-rent operating fund $2,172 from non-Federal funds for the ineligible travel, training, and credit card expenditures.