CPD's Risk Assessment and Monitoring Program Did Not Provide Effective Oversight of Federal Funds
We recommend that the Deputy Assistant Secretary for Operations establish a monitoring tracking system, organized on a CPD field office basis, to incorporate and track internal and external data and provide an immediate, multiyear quantification of grantees, grants, and dollar value for both monitored and not monitored grantees, allowing immediate assessment of monitoring findings, resolutions, and coverage individually and in total.
The Middlesex Health Care Center, Middletown, CT, Was Not Always Operated According to Its Regulatory Agreement and HUD Requirements
Repay the project the $1,168,000 in ineligible distributions made to affiliated healthcare facilities during fiscal years 2015 and 2016.
The Middlesex Health Care Center, Middletown, CT, Was Not Always Operated According to Its Regulatory Agreement and HUD Requirements
Implement controls to ensure that project distributions are made from surplus cash and comply with the regulatory agreement and HUD requirements.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Support that the $592,266 spent on the HACS rental rehabilitation projects was reasonable or repay the program from non-Federal funds.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Support that the $401,614 spent on STANCO rental rehabilitation projects was reasonable and met one of HUD’s national objectives and that it completed an environmental review or repay the program from non-Federal funds.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Develop and implement policies to safeguard HUD funds by ensuring that its projects meet national objectives, have a completed environmental review, and have executed agreements for all projects and verify that work is complete before approving payment, including its rental rehabilitation projects.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Update policies and procedures to ensure that costs are reasonable, including preparing an independent cost estimate and a detailed scope of work for each project.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Support that $173,508 spent on homeowner rehabilitation project expenses was reasonable or repay the program from non-Federal funds.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Update and implement policies and procedures to ensure that all procurements are conducted in a manner that promotes full and open competition and avoids any arbitrary action in the procurement process, including ensuring that contractors are given sufficient time to respond to solicitations.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Repay from non-Federal funds $257,737 from voucher 6035061 for the duplicate draw.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Support that $45,304 drawn in advance met eligibility and procurement requirements and costs were reasonable or repay the unsupported amount from non-Federal funds.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Update its policies and procedures to ensure that the City issues payments to vendors and obtains reimbursement from HUD only after the City’s Community and Economic Development Department has verified that work is complete.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Support that $323,563 spent on rehabilitation administration charged in program year 2015 costs was reasonable and benefited the City’s rehabilitation program or repay the program from non-Federal funds any amount determined to be unreasonable or ineligible.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Reclassify $69,794 in employee payroll and benefits for City employees that did not work on rehabilitation-related activities or repay the program from non-Federal funds.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Support that expenses were related to rehabilitation activities for $66,910 in payroll expenses charged to the rehabilitation delivery expenses activity for its former environmental review specialist or repay the program from non-Federal funds.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Support that expenses were related to rehabilitation activities for $13,263 in unsupported payroll or repay the program from non-Federal funds.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Reclassify $517 in miscellaneous expenses that was incorrectly prorated or repay the program from non-Federal funds.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Provide training for its staff to ensure sufficient knowledge of CDBG requirements regarding when to charge delivery costs, including when to charge payroll to rehabilitation administration, versus general administrative costs.
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance With HUD Requirements
Implement policies and procedures to ensure that the City includes all recipients of CDBG funds in its monitoring plan and that it selects objective sample items for monitoring.
The Lexington-Fayette Urban County Housing Authority, Lexington, KY, Did Not Always Comply With HUD's and Its Own Section 8 Housing Choice Voucher Program Requirements
Reimburse its Section 8 Housing Choice Voucher program $124,075 ($108,687 in housing assistance payments and $15,388 in associated administrative fees) from non-Federal funds for the payments related to the Authority-owned units’ inspections not conducted by an independent entity.