Support that healthy homes assessment and data collection services were cost reasonable or reimburse its Program $361,850 from non-Federal funds.

Support that landlords gave preference in renting eight vacant units to families with children under 6 years of age or reimburse its Program $112,917 from non-Federal funds for the lead-based paint hazard control activities completed at these assisted units.

Support that lead-based paint hazard control activities were necessary at 19 assisted units or reimburse its Program $70,266 from non-Federal funds for the unsupported lead-based paint hazard control activities completed at these assisted units

Coordinate with HUD’s Office of Lead Hazard Control and Healthy Homes to determine whether $51,930 in healthy homes supplemental funds used for four units in excess of $5,000 per unit was for eligible activities. If the activities are deemed ineligible, the Department should reimburse its Program the appropriate amount from non-Federal funds.

Support that one household residing in an assisted unit was income eligible or reimburse its Program $19,500 from non-Federal funds for the lead-based paint hazard control activities completed in the assisted unit.

Implement adequate procedures and controls to ensure that (1) documentation is maintained to support that contracted services are cost reasonable, (2) landlords give preference in renting assisted vacant units to families with children under 6 years of age, (3) lead inspection documentation properly supports lead-based paint hazard control activities, (4) HUD approval is obtained when more than $5,000 per unit in healthy homes supplemental funds is budgeted to assist units, and (5) its staff is fully knowledgeable of the Program requirements.

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.

Develop and implement a procedure to ensure that all differences identified during financial statement and note validations are corrected before certification.

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.

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.

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.

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.

Develop and implement a cost allocation methodology that includes all HUD programs and components, including Ginnie Mae, in the distribution of administrative costs.

In consultation with the Office of Chief Human Capital Officer (OCHCO), develop and establish an activity-based costing process to validate the accuracy of factors used to allocate personnel and other administrative costs to each program and ensure that the validation is performed annually.

In collaboration with the Office of the Chief Information Officer (OCIO), implement an improved cost allocation methodology for IT cost based on direct costs used by the programs.

Determine whether HUD’s FSSP, ARC, has resources available to enhance HUD’s cost allocation methodology to identify, trace, and allocate costs directly to program activities periodically and at yearend.

Develop and implement a procedure that (1) detects significant fluctuations or discrepancies in Ginnie Mae’s budgetary data, (2) investigates the fluctuation or discrepancy to determine whether an error has occurred, and (3) performs corrections as needed, in a timely manner.

Evaluate the impact of the DRGR weaknesses identified in audit memorandum 2018- FW-0802 during the improper payment risk assessment process.

Evaluate the impact of the improper accounting for grant funds issued under the Disaster Relief Appropriations Act, 2013, identified in audit memorandum 2018-FW- 0802 and perform an adjustment or restatement of the impact if deemed significant.