Provide documentation to show that prices paid for purchases of products and services totaling $970,381 were fair and reasonable or reimburse the project from nonproject funds for any amounts that were not fair and reasonable.
2017-PH-1003 | May 21, 2017
The Yorkville Cooperative, Fairfax, VA, Did Not Administer Its HUD-Insured Property and Housing Assistance Contract According to Applicable Requirements
Housing
- Status2017-PH-1003-001-AOpenClosed$970,381Questioned 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.
- Status2017-PH-1003-001-BOpenClosed$716,693Questioned 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.
Provide documentation to show that payments for work totaling $716,693 complied with applicable building codes or reimburse the project from nonproject funds for payments that did not comply with the codes and take action to bring the work up to code.
- Status2017-PH-1003-001-COpenClosed$163,885Questioned 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.
Provide documentation to support payments totaling $163,885 or reimburse the project from nonproject funds for payments that it cannot support.
- Status2017-PH-1003-001-DOpenClosed
Develop and implement written procedures to ensure that it obtains written cost estimates as required and maintains complete documentation to support expenditures and that contractors performing or managing construction, removal, repair, or improvement work are properly licensed as required.
- Status2017-PH-1003-002-AOpenClosed$296,787Questioned 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 $296,787 from nonproject funds for the ineligible legal expenses.
- Status2017-PH-1003-002-BOpenClosed$3,892Questioned 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 HUD $3,892 from nonproject funds for the overpayment of housing assistance.
- Status2017-PH-1003-002-COpenClosed
Correct the errors in the tenant files identified during the audit.
2017-FO-0006 | May 10, 2017
Fiscal Year 2016 Audit of HUD’s Compliance with the Improper Payments Elimination and Recovery Act
Chief Financial Officer
- Status2017-FO-0006-001-AOpenClosed
Ensure that all payments to Federal employees are included in HUD’s periodic risk assessment cycle.
- Status2017-FO-0006-001-BOpenClosed
Establish and implement procedures and controls, in coordination with FHA, to ensure that FHA information reported in the AFR is accurate and consistent with supporting documents.
- Status2017-FO-0006-004-AOpenClosed
Develop and implement steps to ensure that the description of corrective actions highlights current efforts and key milestones for ongoing efforts and explain in the AFR how it specifically tailored its corrective actions to better reflect the unique processes, procedures, and risks involved with RHAP as required by OMB.
- Status2017-FO-0006-004-BOpenClosed
Develop and implement steps to ensure that adequate disclosures are made when future-year reduction targets for improper payments reported in the AFR are higher than the current-year improper payment estimates.
- Status2017-FO-0006-004-COpenClosed
Disclose in the AFR the results of HUD’s review concerning its current performance against program-specific improper payment reduction targets to promote transparency.
2017-BO-1005 | April 20, 2017
Health Concepts Ltd’s., Providence, RI Service Charges at FHA-Insured Nursing Homes Did Not Always Comply With Management Agreements.
Housing
- Status2017-BO-1005-001-AOpenClosed
Develop and implement adequate controls over payments for services that are part of the management fee.
- Status2017-BO-1005-001-BOpenClosed
Amend and resubmit the management agreements and the management certifications for HUD approval and ensure that the agreements do not conflict with the management certifications.
- Status2017-BO-1005-001-COpenClosed
Identify all unallowable fees and reimburse from non-project funds.
2017-PH-1002 | March 23, 2017
The Owner of Laurentian Hall Apartments, Pittsburgh, PA, Did Not Always Manage Its HUD-Mortgaged Project in Accordance With HUD Requirements
Housing
- Status2017-PH-1002-001-AOpenClosed$282,578Funds 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.
Pay the project $282,578 from non-project funds for the fair value of the commercial rent not collected from the lessees.
- Status2017-PH-1002-001-BOpenClosed$36,858Funds 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.
Request approval from HUD to lease the commercial space. If HUD approves the request, then execute a lease at fair market rent thereby increasing the project’s rent revenue by at least $36,858 per year.
- Status2017-PH-1002-001-COpenClosed$31,769Questioned 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.
Request approval from HUD for the $31,769 in project operating funds spent on building improvements or repay the project from nonproject funds for any amount not approved.
- Status2017-PH-1002-001-DOpenClosed$39,920Questioned 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.
Provide documentation to show that the $39,920 paid to replace an air conditioning system was fair and reasonable or repay the project from nonproject funds any amount determined not to be fair and reasonable (excluding any amount repaid as a result of recommendation 1C).
- Status2017-PH-1002-001-EOpenClosed$25,000Funds 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.
Remove the $25,000 lien on the project property.