Develop and implement a cost allocation methodology that includes all HUD programs and components, including Ginnie Mae, in the distribution of administrative costs.
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
Chief Financial Officer
2019-FO-0003-001-F
Closed on September 13, 20192019-FO-0003-001-G
Closed on September 12, 2019In 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.
2019-FO-0003-001-H
Closed on September 12, 2019In 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.
2019-FO-0003-001-I
Closed on March 30, 2020Determine 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.
2019-FO-0003-001-J
Closed on September 12, 2019Develop 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.
2019-FO-0003-002-A
Closed on August 24, 2020Evaluate the impact of the DRGR weaknesses identified in audit memorandum 2018- FW-0802 during the improper payment risk assessment process.
2019-FO-0003-002-B
Closed on June 17, 2019Evaluate 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.
2019-FO-0003-002-C
Closed on November 27, 2019Work with CPD on remediation plans to address application control weaknesses within DRGR identified by audit memorandum 2018-FW-0802 that have contributed to continuing FFMIA noncompliance.
2019-FO-0003-002-D
Closed on May 31, 2019Require the grantees to submit supporting documentation with their survey responses to substantiate the amounts certified in support of OCFO’s validation of grant accrual estimates
2019-FO-0003-002-E
Closed on May 31, 2019Provide periodic training to grantees to assist them with understanding and completing the information requested in the survey letter to validate HUD’s grant accrual estimates.
2019-FO-0003-002-F
Closed on August 14, 2019Research the survey responses received as part of OCFO’s validation of grant accrual estimates that resulted in a positive cash on hand to determine whether a cash advance exists. If so, OCFO should coordinate with CPD to (1) determine whether the grantees have proper documentation and approvals allowing for cash advances and (2) develop and implement procedures to estimate and account for cash advances for financial reporting purposes.
2019-FO-0003-002-G
Closed on June 29, 2020Develop and implement standard operating procedures for recording and periodically evaluating sustained audit receivables to ensure that (1) all receivables are supported by a claim to cash and (2) an allowance for loss is recorded that reasonably estimates uncollectible amounts to reduce the gross amount of receivables to its net realizable value.
2019-FO-0003-002-H
Closed on June 29, 2020Develop and implement procedures that require action officials to certify the validity of accounts receivables periodically, at least quarterly. OCFO should use this information to assess the reasonableness of the allowance for loss estimate.
2019-FO-0003-002-I
Closed on September 13, 2019Work with action officials to determine the validity of all receivables from OIG sustained audit findings, determine whether restatement is necessary, and adjust HUD’s current and prior-year accounts receivable balances accordingly, ensuring that all writeoffs are reported to the Treasury.
2019-FO-0003-002-J
Closed on November 15, 2019Perform a validation, comparing the data used in OCFO’s PIH prepayment estimate calculation to the data used by PIH in its RNP reports to ensure that all CAM 1 codes and VMS fields are appropriately included. If it is determined that CAM 1 codes or VMS codes are missing or not properly included, OCFO should update the standard operating procedure and all estimates made to ensure that they are included.
2019-FO-0003-002-K
Closed on September 24, 2019Design and implement a procedure that ensures periodic communication between OCFO and PIH regarding all events that impact the PIH prepayment estimate.
2019-FO-0003-002-L
Closed on November 19, 2019Review FMC’s final December 31, 2016, balances and update the PIH prepayment beginning balance accordingly.
2019-FO-0003-004-A
Closed on September 30, 2019Delegate responsibilities to the appropriate program office and assign risk owners to provide responses for the acceptance, mitigation, and elimination of risks identified in HUD’s ERM risk profile.
2019-FO-0003-004-B
Closed on September 30, 2019Develop, implement, and document internal controls in response to identified risks from HUD’s ERM risk profile in compliance with OMB Circular No. A-123, Management's Responsibility for Enterprise Risk Management and Internal Control.
2019-FO-0003-004-C
Closed on September 30, 2019Complete and issue final FERA policy to the Department and communicate the requirements within the policy to program offices in a timely manner.