Execute agreements with owners of the assisted units detailing the Department’s recapture policy and determine whether liens should be filed with the appropriate government office to ensure that Program funds used to assist the units are properly protected and able to be recaptured if assisted units are resold within 3 years. These protections should ensure that $297,924 in Program funds is adequately protected.

Implement adequate procedures and controls to ensure that (1) contracts are properly procured in accordance with HUD’s requirements, (2) annual income is properly calculated for households residing in assisted units, (3) the appropriate reimbursement payments are made to the subcontractor for lead-based paint and other health hazard control activities, (4) lead inspection results properly support lead-based paint hazard control activities, (5)…

Develop and implement adequate procedures and controls to ensure that assisted rental units are prioritized for families with children under 6 years of age.

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.

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.

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.

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 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.

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.