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.

Develop and implement a procedure to verify all information presented in HUD’s consolidated financial statement note disclosures with its standalone note disclosures before certifying HUD’s statements and notes.

Revise its quarterly tie point analysis to include a check for all of its budgetary accounts.

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.

Work 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.

Require 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

Provide 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.

Foreclosure fraud schemes can happen when a homeowner falls behind on their mortgage, usually, after a sudden life changing event challenges their financial stability, such as a death, a job loss, a medical issue, or other unforeseen event.

Recover from owner $2,687,822, the difference between $3,662,822 owed to HUD by owner and $975,000 proceeds of foreclosure sale.

Require the PRPHA to submit all supporting documentation and determine the accuracy of the $4,230,646 owed by PBA and its public housing management agents. Any amounts determined ineligible must be reimbursed to the ACC projects, from non-Federal funds.

We recommend that HUD’s Director of Public Housing Hub, Detroit Field Office, assure the Royal Oak Township Housing Commission: Reimburse its Public Housing Program $367,516 from non-Federal funds for the improper use of HUD operating subsidy funds cited in this finding.

Require the Municipality to obtain and submit all supporting documentation and HUD determine the eligibility and propriety of $1,011,801 in administrative costs the Corporation charged to the Block Grant revolving fund. Any amounts determined ineligible must be reimbursed to the Block Grant program from nonfederal funds.

Require the Municipality to obtain and submit all supporting documentation and HUD determine the eligibility and compliance with national objectives of the $631,195 the Corporation disbursed for the four loans. Any amounts determined ineligible must be reimbursed to the Block Grant program from nonfederal funds.

We recommend that the director of HUD’s Public Housing Hub, Cleveland Field Office, require the Authority to provide support or reimburse its Section 8 program $812,967 ($738,708 in housing assistance payments plus $74,259 in related administrative fees) from nonfederal funds for unsupported housing assistance payments and unearned administrative fees related to the 65 tenants cited in this finding.

We recommend that the director of HUD’s Detroit Office of Public Housing require the Commission to Reimburse its program $535,903 from nonfederal funds ($507,860 for the property purchase plus $28,043 for legal costs) for the improper use of program funds to pay for the property’s acquisition costs.

We recommend that the director of HUD’s Cleveland Office of Public Housing require the Authority to provide documentation to support that the $913,365 in refunding savings cited in this finding was used to provide affordable, decent, safe, and sanitary housing to very low-income households or reimburse from nonfederal funds its refunding savings account(s), as appropriate, to be able to trace its use of the savings.