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Open Recommendations by Oversight Area
Oversight Area	Priority Recommendations	Open Recommendations
Housing Assistance	75	100
Community Development	3	75
Disaster Recovery	3	82
Financial Risk and Accountability	6	130
Technology and Cybersecurity	4	88
Health and Safety	1	53
HUD's Operations	4	100
Total	96	628

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In coordination with our Office of Investigations, we audited the Housing Authority of the City of Jasper, TX, because we received a complaint. The complainant’s allegations included the executive director’s misuse of Authority vehicles and other issues. Our audit objective was to determine…

Oversight Area: Rental Assistance

Repay from nonfederal funds $27,818 to its Capital Funds program from non-Federal funds for the ineligible purchase of the truck and expenditure of 2013 funds before they were available.

Repay from nonfederal funds its HUD programs $7,446 for the executive director’s personal use of the Authority’s equipment, and amend the executive director’s prior Internal Revenue Forms W-2 to include the annual personal use of $5,888 as income.

Repay from nonfederal funds its HUD programs $4,739 paid to its fee accountant, which had a conflict of interest with the executive director.

Repay from nonfederal funds its HUD programs $1,273 lost on the conflict of interest sale of the Authority’s vehicle to the executive director’s daughter.

Repay from nonfederal funds its HUD programs $1,034 for ineligible charges on the Authority’s credit cards.

Support or repay from nonfederal funds its HUD programs $652 for unsupported charges on the Authority’s credit card.

Repay from nonfederal funds its HUD programs $4,000 paid for an ineligible 2011 training conference.

Provide support for the reasonableness of the unit repairs costs totaling $44,994 and repay from nonfederal funds any unsupported or unreasonable amount.

Provide training for the Authority’s commissioners on their responsibilities and duties.

Require the Authority to update its policies and procedures so that they contain current Federal guidance.

We recommend that the Director, Departmental Enforcement Center take appropriate administrative sanctions, including suspension, limited denial of participation, or debarment against the executive director.

We recommend that the Director, Departmental Enforcement Center seek civil money penalties, as appropriate, against the executive director.

We recommend that the Associate General Counsel for Program Enforcement determine legal sufficiency and, if legally sufficient, pursue remedies under the Program Fraud Civil Remedies Act against the executive director.

Provide technical assistance to the Mayor and the board concerning their responsibilities regarding the Authority.

Monitor the Authority to ensure it is holding its board meetings, as required by its bylaws.

We audited the Inglewood Housing Authority (Authority) based upon issues with participant eligibility identified during our previous review of the financial operations of the Authority’s Housing Choice Voucher program, audit report 2016-LA-1013. Our audit objective was to determine whether the…

Oversight Area: Rental Assistance

Reimburse its program $648 from non-Federal funds and use its internal control procedures to ensure that housing assistance payments are correctly calculated during the certification process to ensure that a $648 overpayment in program funds is appropriately used for future payments.

Reimburse the participants $84 from non-Federal funds for the underpayment of housing assistance.

Develop and implement an internal policy and procedure related to interim certifications to ensure that it obtains EIV reports and maintains those reports in participant files.

Develop and implement controls to minimize instances of overpayment and underpayment of housing assistance.

The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited HUD to determine whether it ensured that lenders properly processed voluntary terminations of insurance coverage on single-family Federal Housing Administration (FHA) loans and disclosed all implications of…

Oversight Area: Homeownership

Investigate the 14 loans with unpaid mortgage amounts totaling $3,035,819, and require the lenders to obtain the borrowers consent, reinstate the insurance coverage, or take other action as appropriate given the facts of each particular loan.

Remind lenders that voluntary termination is not the correct termination type to record third-party sales and that borrower consent is required to terminate insurance, even if the loans are indemnified.

Improve its procedures for detecting and sanctioning improper voluntary terminations.

Update Handbook 4000.1 to require the voluntary termination of insurance consent form to include an explanation that voluntary termination differs from mortgage insurance premium cancellation and the disclosure of any outstanding partial claims to put $285,215 to better use.

We audited the Housing Authority of DeKalb County’s Rental Assistance Demonstration (RAD) conversion and Public Housing Capital Fund program. We selected the Authority for review in accordance with our annual audit plan. Our audit objective was to determine whether the Authority properly…

Oversight Area: Rental Assistance

Deobligate $542,289 in fiscal year 2015 capital funds in HUD’s system until binding agreements are executed for eligible and reasonable purposes, or coordinate with HUD for terminating its funding.

Reclassify $398,022 in fiscal year 2016 capital funds as authorized in HUD’s system to an eligible and reasonable activity, or coordinate with HUD for terminating its funding.

Coordinate with HUD for terminating the allocation of the remaining $217,553 funds given the Authority’s current intentions to not build or purchase public housing units.

Develop and implement adequate procedures and controls to ensure that the reporting of allocated capital funds in HUD’s system is accurate.

Provide adequate training to staff responsible for making entries into HUD’s system to ensure accurate reporting on allocated funds. The training should include but not be limited to ensuring that its staff understands all of HUD’s reporting requirements for obligations and authorizations.

Confirm the replacement of program units was appropriate for the number of units demolished at Johnson Ferry East, and submit a development proposal to construct new public housing units, transfer public housing assistance to another public housing agency, or terminate its annual contributions contract and return all unobligated and unexpended capital funds to HUD.

We audited the Youngstown Metropolitan Housing Authority’s Housing Choice Voucher program based on the activities included in our 2016 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction. Our audit objective was to determine whether…

Oversight Area: Rental Assistance

Reconcile the $58,457 difference among its system report and subsidiary ledger and the information reported in HUD’s system ($1,944 in monthly escrow deposits $521 difference in monthly escrow deposits between HUD’s system and the amount reported in the Voucher Management system the average difference of $55,992 in total escrow account balances) to ensure that the monthly escrow deposits and total escrow balances are appropriately reported in HUD’s system and provide the supporting documentation to HUD.

Reconcile the current program participants and related information in its internal systems with the current participants listed in HUD’s systems.

Transfer $4,684 from its Housing Choice Voucher program account to its program account for the 12 participants with underfunded escrows.

Support or transfer $17,266 from its program account to its Housing Choice Voucher program for the 11 unsupported escrow calculations cited in this finding.

Transfer $7,574 from its program account to its Housing Choice Voucher program account for the five participants with overfunded escrows.

Support or reimburse its Housing Choice Voucher program $6,839 from non-Federal funds for the one unsupported interim disbursement and five unsupported graduation disbursements cited in this finding.

Reimburse its Housing Choice Voucher program $23,475 from non-Federal funds for the two ineligible interim and three ineligible graduation disbursements cited in this finding.

Reimburse two participants $7,076 from its Housing Choice Voucher program account for the underfunded graduation payments cited in this finding.

Ensure that it obtains a separate interest-bearing depository account for its program participants’ escrow funds in accordance with HUD’s requirements.

Ensure that its staff is appropriately trained and familiar with HUD’s requirements and its program action plan regarding the administration of its program to ensure that (1) participants’ contracts of participation and individual training and services plans are properly updated and contain the necessary signatures; (2) changes in participants’ files are properly identified and notated; and (3) participants are notified of changes in their monthly escrow deposits, total escrow balances, or both.

Develop and implement procedures and controls to ensure that (1) documentation required by HUD and its own action plan is correctly completed, documented, and updated; (2) escrow account balances are correctly calculated and disbursed; and (3) escrow accounts and disbursements are fully supported to ensure that $127,544 in coordinator grant funds is appropriately used over the next year.

Determine the amount of the $387,507 in coordinator grant funds that was appropriately earned by the Authority for meeting requirements. The funds that are determined to be unearned should be reimbursed to HUD from non-Federal funds.

Review the Authority’s graduate documentation and adjust the Authority’s minimum program size as necessary.

Review the Authority’s Section Eight Management Assessment Program scores for the Family Self-Sufficiency program and adjust as necessary.

Provide technical assistance and guidance to the Authority to ensure that it properly administers its Family Self-Sufficiency program.

Reimburse its program $34,666 from non-Federal funds ($21,990 $12,676 in administrative fees) for the overpayment of housing assistance due to inappropriate calculations of housing assistance.

Reimburse the appropriate households $1,265 from program funds for the underpayment of housing assistance due to inappropriate calculations.

Pursue collection from the applicable households or reimburse its program $9,644 from non-Federal funds for the overpayment of housing assistance due to unreported or underreported income.

Support or reimburse its program $1,666 from non-Federal funds for the unsupported payments of housing assistance cited in this finding.

Implement adequate procedures and controls to ensure that (1) housing assistance payments are appropriately calculated and supported, (2) repayment agreements are created to recover overpaid housing assistance when unreported income is discovered during the examination process, and (3) annual reexaminations are completed in a timely manner to ensure that $322,550 in program funds is appropriately used for future payments.

We audited the Louisville Metro Housing Authority’s Section 8 Housing Choice Voucher program based on our risk assessment of all Kentucky public housing agencies and as part of the activities in our annual audit plan. Our audit objective was to determine whether the Authority administered its…

Oversight Area: Rental Assistance

Reimburse the program $70,992 ($63,312 $7,680) from non-Federal funds for housing assistance payments made and administrative fees received for the units that materially failed to meet HUD’s housing quality standards.

Certify, along with the owners of the 103 units cited in the finding, that the applicable housing quality standards violations have been corrected.

Develop and implement adequate policies and procedures for conducting quality control inspections in accordance with HUD’s requirements.

Develop and implement adequate procedures and controls to ensure that its quality control inspection program functions properly to include adequately monitoring the inspection contractor to prevent $20,566,345 in program funds from being spent over the next year on units that do not materially comply with requirements.

Reimburse the program $2,492 ($2,286 in housing assistance payments and $206 in administrative fees received) from non-Federal funds for rental subsidies not abated on four units.

Complete a review of rental subsidy abatements for all current units for which a retroactive abatement was not conducted. The Authority should reimburse the program from non-Federal funds for any overpaid rental subsidy.

Develop and implement written procedures and a process for retroactively abating housing assistance payments.

Complete a rent reasonableness determination for all current units for which a determination was required but not completed. The Authority should reimburse the program from non-Federal funds for any overpaid rental subsidy.

Develop and implement written procedures to ensure that a rent reasonableness determination is performed before rent increases are approved.

Complete a review that owners of current assisted units are not debarred, suspended, or subject to a limited denial of participation.

Develop and implement written procedures for conducting a complete owner eligibility determination.

Provide adequate training to its staff to ensure compliance with HUD’s requirements for program units.

We audited Alpine First Preston Joint Venture II, LLC, a contracted asset manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2017 annual audit plan and because it was the sole contractor to market and sell U.S. Department of Housing…

Oversight Area: Homeownership

Implement adequate procedures and controls to ensure that it properly monitors the listing brokers to ensure compliance with its contract. The procedures and controls should include but not limited to performing quality control reviews and supervisory review of its brokers, and maintaining documentation of its quality control reviews and corrective actions.

Update its quality control plan to include the performance of physical inspections of the properties in its inventory.

We audited the Housing Choice Voucher and public housing programs at the West Warwick Housing Authority as a result of concerns from the U.S. Department of Housing and Urban Development (HUD) and a hotline complaint. The audit objectives were to determine whether (1) procurements were executed in…

Oversight Area: Rental Assistance

Provide documentation to support that $2,063,351 was spent for reasonable and necessary costs. Any amount that cannot be supported should be repaid to the Housing Choice Voucher or public housing programs from non-Federal funds.

Reimburse the Housing Choice Voucher and public housing programs $2,752 from non-Federal sources for improper conflict-of-interest purchases.

Deobligate $6,100 from the asbestos abatement procurement and redistribute the funds to the public housing programs for eligible purposes.

Develop and implement procurement policies and procedures that comply with Federal, State, and local laws.

Develop and implement controls to ensure that contracts are in place when applicable.

Develop and enforce written conflict-of-interest requirements in compliance with Federal rules and regulations.

Develop and maintain a contract management system, including a contract register for all procurements.

Evaluate the training of West Warwick’s board of commissioners and determine whether additional training is required or other changes are appropriate.

.Develop and implement written policies and procedures to ensure that each Housing Choice Voucher program tenant file has an appropriately documented rent reasonableness determination.

Develop and implement written policies and procedures to ensure that each public housing unit has an annual inspection, which is appropriately documented in the tenant file.

Determine whether tenants were underpaid for utility allowances and if so, reimburse the tenants from non-Federal funds.

Evaluate the training of West Warwick employees and determine what additional training is necessary..

Provide documentation to support that $18,501 in credit card charges was spent for reasonable and necessary costs. Any amount that cannot be supported should be repaid from non-Federal funds and returned to the Housing Choice Voucher and public housing programs.

Provide documentation to support that $4,530 in petty cash funds was spent for reasonable and necessary costs. Any amount that cannot be supported should be repaid from non-Federal funds and returned to the Housing Choice Voucher and public housing programs.

Develop and maintain property records and conduct an inventory in accordance with Federal regulations.

Oversight Area: Homeownership

Oversight Area: Rental Assistance

Open Recommendations by Oversight Area

Oversight Area

Status

Priority

The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD’s Requirements

The Inglewood Housing Authority, Inglewood, CA, Generally Ensured the Eligibility of Its Housing Choice Voucher Program Participants

HUD Did Not Ensure That Lenders Properly Processed Voluntary Terminations of Insurance Coverage on FHA Loans and Disclosed All Implications of the Terminations to the Borrowers

The Housing Authority of DeKalb County, Decatur, GA, Generally Administered RAD Appropriately but Did Not Accurately Report on Its Capital Fund Program

The Youngstown Metropolitan Housing Authority, Youngstown, OH, Did Not Always Comply With HUD’s and Its Own Requirements Regarding the Administration of Its Housing Choice Voucher Program

The Louisville Metro Housing Authority, Louisville, KY, Did Not Comply With HUD’s and Its Own Section 8 Housing Choice Voucher Program Requirements

Alpine First Preston Joint Venture II, LLC, Alpine, UT, Did Not Always Comply With Its Contract With HUD and Its Own Requirements for the Marketing and Sale of HUD-Owned Properties in the State of IL

The West Warwick Housing Authority, West Warwick, RI, Needs To Improve Its Compliance With Federal Regulations for Its Housing Choice Voucher and Public Housing Programs

Suburban Mtg, Inc.

The Jacksonville Housing Authority, Jacksonville, Arkansas, Mismanaged Public Housing Capital Fund Program Funding

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