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.

Disclose in the AFR the results of HUD’s review concerning its current performance against program-specific improper payment reduction targets to promote transparency.

We recommend that the Director, Departmental Enforcement Center take appropriate administrative sanctions, including suspension, limited denial of participation, or debarment against the executive director.

We recommend that the Director, Departmental Enforcement Center seek civil money penalties, as appropriate, against the executive director.

We recommend that the Associate General Counsel for Program Enforcement determine legal sufficiency and, if legally sufficient, pursue remedies under the Program Fraud Civil Remedies Act against the executive director.

Acknowledge that the judgment awarded $10,373,998 against the former president and founder of MDR Mortgage to the U.S. Government, of which HUD’s loss totaled $3,452,499.

Acknowledge that $45 million in the attached settlement agreement represents an amount due HUD, less the Department of Justice’s civil debt collection fees.

We recommend that the Director of HUD’s Departmental Enforcement Center pursue administrative sanctions against any current or former Authority officials found to have spent public housing program funds for personal or unallowable use.

Acknowledge that $3,173,077 of the $4,250,000, in the attached settlement represents an amount due HUD.

Request sufficient monetary resources to upgrade HUD’s many legacy and financial systems so its technologies and data elements no longer differ and can perform the necessary data inventory and mapping to report HUD’s information in USASpending.gov accurately and in a timely manner.

Ensure that HUD program officials continue taking appropriate steps to fully resolve its errors and data quality issues that the agency identified during implementation, including those related to assigning a unique identifier consistent with the established DATA Act schema, such as the Federal Award Identification Number.

Designate official DATA Act points of contact for FHA and Ginnie Mae and oversee the progress of the two HUD components’ individual implementation plans, ensuring timely and successful completion of their steps.

Finalize required mapping of HUD’s, including FHA’s and Ginnie Mae’s, financial, budgetary and programmatic data, as required by the DATA Act and OMB guidance.

Evaluate the current content of HUD’s financial statement note disclosures to identify outdated or irrelevant information that may not be needed, while maintaining compliance with OMB Circular A-136 and presenting the reader with the information necessary to understand HUD’s financial statements.

Work with FHA and Ginnie Mae to reevaluate the note consolidation process to determine changes that can be made to the process to ensure compliance with financial reporting requirements.

Reassess HUD’s current consolidated financial statement and notes review process to ensure that (1) all reviewers have sufficient financial reporting experience; (2) it includes steps to verify that the notes match HUD’s financial statements, are sufficiently supported, and accurately include FHA and Ginnie Mae information; and the review can be completed within the required timeframe needed to allow for audit.

Develop a plan to ensure that restatements to HUD’s consolidated financial statements are properly reflected in all notes impacted by the restatement.

Acknowledge that the settlement agreement for $5,000 represents an amount due HUD.

The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.

The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.