Conduct a review to determine whether the Authority is complying with the reexamination schedule in its Moving to Work policy and incorporate timely reexaminations in the risk management assessment.
2019-SE-1001 | December 21, 2018
The Tacoma, WA, Housing Authority Generally Satisfied RAD Requirements but Did Not Follow Its Moving to Work Policy by Conducting Annual Tenant Reexaminations for Its RAD Converted Units
Public and Indian Housing
- Status2019-SE-1001-001-DOpenClosed
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-AOpenClosed
Certify, along with the owners, that the applicable housing quality standards violations have been corrected for the 78 units cited in this finding.
- 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.
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.
- 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.
Chief Financial Officer
- Status2019-FO-0003-001-AOpenClosed
Develop and implement a procedure to ensure that all differences identified during financial statement and note validations are corrected before certification.
- Status2019-FO-0003-001-BOpenClosed
Develop and implement a process that ensures the routine collection of information needed to accurately complete the narratives required according to GAAP and OMB Circular A-136.
- Status2019-FO-0003-001-COpenClosed
Develop and implement a procedure to ensure that HUD’s quarterly consolidated financial statements accurately reflect HUD’s current contingent liabilities resulting from pending or threatened litigation or unasserted claims.
- Status2019-FO-0003-001-DOpenClosed
Restate the following in HUD’s fiscal year 2017 consolidated financial statements: (1) Note 3, Fund Balance with Treasury, so that it is comparable to HUD’s new status of fund balance with Treasury presentation, (2) the statement of net cost by reducing the administrative costs for non-FHA programs by $174 million, and (3) the balance sheet to correct the $136.7 million misstatements in the Commitments and Contingencies and Other Liabilities line items. If a partial restatement or no restatements are made, OCFO should provide justifications and support for the decisions.
- Status2019-FO-0003-001-EOpenClosed
In consultation with the Office of Housing FHA Comptroller, develop and establish internal controls to ensure periodic communications for assessing and agreeing to the cost allocation accounting policies and procedures.