Federal Reports

The Office of National Drug Control Policy’s (ONDCP) Circular, Accounting of Drug Control Funding and Performance Summary, requires each National Drug Control Program agency to submit to the ONDCP Director a detailed accounting of all funds expended for National Drug Control Program activities during the previous fiscal year. Williams, Adley & Company –DC, LLP (Williams Adley), under contract with the Department of Homeland Security OIG, issued an Independent Accountant’s Report on U.S. Coast Guard’s (Coast Guard) Detailed Accounting Submission. Coast Guard management prepared the Table of FY 2018 Drug Control Obligations and related disclosures in accordance with requirements of ONDCP Circular, Accounting of Drug Control Funding and Performance Summary, dated May 8, 2018 (the Circular). Based on its review, nothing came to Williams Adley’s attention that caused it to believe that the Coast Guard’s FY 2018 Detailed Accounting Submission is not presented in conformity with the criteria in the Circular. Williams Adley did not make any recommendations as a result of its review.

We conducted a limited scope audit of the Ohio Arts Council (OAC) for the period of July 1, 2015 through June 30, 2018. Limited scope audits involve a limited review of financial and non-financial information of NEA award recipients to ensure validity and accuracy of reported information, and compliance with Federal requirements. Our limited scope audit concluded that the OAC generally did not comply with the financial management system and recordkeeping requirements established by the OMB and NEA. Following is a summary of our findings: the OAC included unallowable costs on the Federal Financial Report (FFR) for award No. 15-6100-2037; the OAC included unsupported costs on the FFRs for award Nos. 15-6100-2037 and 16-6100-2044; the OAC included costs incurred outside the period of performance on the FFRs for award Nos. 15-6100-2037 and 16-6100-2044; the OAC did not provide accurate, current, and complete disclosure of the financial results of award Nos. 15-6100-2037 and 16-6100-2044; the OAC did not provide notice of Federal award participation to subrecipients of awards used to meet the Federal cost share/match; and the OAC generally did not administer NEA awards in compliance with NEA and Federal regulations.

Weill Cornell Medicine awarded subawards and monitored subaward recipients in compliance with National Institutes of Health (NIH) grant polices and Federal regulations. In addition, as both a prime recipient and a subrecipient of NIH funds, Weill Cornell claimed allowable expenditures on subawards it both awarded and received. Accordingly, this report contains no recommendations.

We audited selected general and application controls over the Federal Housing Administration’s Computerized Homes Underwriting Management System as part of the internal control assessments required for the fiscal year 2018 financial statement audit under the Chief Financial Officer’s Act of 1990.  Our objective was to review the effectiveness of controls for compliance with HUD information technology policies and Federal information system security and financial management requirements.The OIG has determined that the contents of this audit report would not be appropriate for public disclosure and has therefore limited its distribution to those officials listed on the report distribution list.

We audited the Louisville-Jefferson County Metropolitan Government’s tenant-based rental assistance (TBRA) activity in its HOME Investment Partnerships and Continuum of Care (CoC) programs, based on a hotline complaint alleging inappropriate administration of TBRA. In addition, we selected Louisville Metro for review in accordance with the Office of Inspector General’s annual audit plan. Our audit objective was to determine whether Louisville Metro administered the TBRA activity in its HOME and CoC programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements for participants’ recertifications and calculations of housing assistance payments.Louisville Metro did not (1) complete the annual recertifications in a timely manner with a signed housing assistance payments contract before providing housing assistance for 12 and 41 participants and (2) correctly calculate housing assistance payments for 13 and 16 households of the 34 and 68 HOME and CoC participants reviewed, respectively. This condition occurred because Louisville Metro did not enforce its policy and its staff had not been trained on calculating housing assistance payments. As a result, it (1) overpaid more than $123,000 in housing assistance for its HOME and CoC programs; (2) underpaid more than $720 in housing assistance for HOME and CoC participants; and (3) lacked documentation to support nearly $7,350 in CoC program funds used for housing assistance payments. In addition, Louisville Metro and HUD lacked assurance that the TBRA activity in the HOME and CoC programs was administered in accordance with HUD’s and Louisville Metro’s requirements.We recommend that the Acting Director for the Louisville, KY, Office of Community Planning and Development require Louisville Metro to (1) reimburse its programs more than $123,000 and its program participants more than $720, (2) support nearly $7,350 or reimburse its CoC program from non-Federal funds, (3) enforce its policy or implement other methods to ensure that annual recertifications are completed in a timely manner before issuing housing assistance, and (4) correct its certification process to ensure that nearly $385,700 in housing assistance payments is provided appropriately over the next year.