Open Recommendations

Provide documentation to support that $500,000 in NSP funds transferred to the revolving loan fund was used for an eligible NSP2 activity or property or repay the program from non-Federal funds.

Develop and implement sufficient financial procedures and controls to ensure that program income is appropriately recorded and properly transferred to its NSP2 account.

Ensure it has sufficient staffing and capacity to administer the NSP2 program, including obtaining training for its staff to understand HUD requirements and how to use the DRGR system.

Amend the NSP2 action plan to include its revolving loan fund.

Adjust program income calculation methodology to ensure it is in accordance with HUD requirements.

Submit overdue NSP2 quarterly reports to DRGR and update prior reports that did not accurately report program income activity.

Provide adequate documentation to support its administrative and project delivery cost expenditures or repay the program $1,388,545 from non-Federal funds.

Provide supporting documentation to show whether the outstanding liability of $324,478 is correctly classified as an NSP2 liability. If not, HUD should ensure that NHSLA corrects its NSP2 cost reimbursement summary for the 12 months ending June 30, 2018, to reclassify the expenses to a non-NSP2 program. Such funds would be considered funds to be put to better use.

Develop and implement a HUD-approved cost allocation plan to properly account for indirect program costs.

Establish written payroll policies and procedures in accordance with program requirements for the tracking, recording, and maintenance of direct costs to ensure that time distribution records are in place to support the allocation of charges.

Obtain training to ensure that it understands NSP2 regulations and requirements related to payroll allocation for its administrative and project delivery costs and program income calculation methodology to ensure it properly computes the amount it is allowed to charge for administrative costs.

Support the reasonableness of the South Gate contract or repay NSP2 $856,692 from non-Federal funds.

Develop and implement additional procedures and controls to ensure that HUD procurement requirements are followed.

The Office of Cuba Broadcasting, in coordination with the U.S. Agency for Global Media, should prepare and communicate with its staff a comprehensive plan for timely implementation of the editorial oversight reforms, including annual program reviews.

The United States Agency for Global Media should direct each network to develop systematic employee training on journalistic standards and related professional development plans.

We recommend that the FWSrequire the Division to resolve the identified encroachments on land purchased with Federal awards.

Adopt and implement policies and procedures on military leave and pay requirements that comply with 5 U.S.C. §§ 5538, 6323, and 5519.

Provide resources for supervisors, timekeepers, and reservists on theirroles and responsibilities related to military leave under the law and Agency policies.

Establish and implement internal controls that will allow the Agency to monitor compliance with applicable laws, federal guidance, and Agency policies, including periodic internal audits of all military leave, to verify that(a) charges by reservists are correct and supported and (b) appropriatereservist differential and military offset payroll audit calculations are being requested and performed.

Require reservists to correct and supervisors to approve military leave time charging errors in PeoplePlus that have been identified during theaudit or as part of the Agency’s actions related to Recommendations 5 and 6.

Recover the approximately $11,000 in military pay related to unsupported 5 U.S.C. § 6323(a) military leave charges, unless the Agency can obtain documentation to substantiate the validity of thereservists’ military leave.

Submit documentation for the reservists’ military leave related to the approximately $118,000 charged under 5 U.S.C. § 6323(b) to the EPA’spayroll provider to perform payroll audit calculations and recover any military offsets that may be due.

Identify the population of reservists who took unpaid military leave pursuant to 5 U.S.C. § 5538 and determine whether those reservists are entitled to receive a reservist differential. Based on the results of this determination, take appropriate steps to request that the EPA’s payrollprovider perform payroll audit calculations to identify and pay the amounts that may be due to reservists.

For the time periods outside of the scope of our audit (pre-January 2017 and post-June 2019), identify the population of reservists who charged military leave under 5 U.S.C. § 6323(b) or 6323(c) and determine whether military offset was paid by the reservists. If not, review reservists’ military documentation to determine whether payroll audit calculations are required. If required, request that the EPA’s payroll provider perform payroll audit calculations to identify and recover military offsets that maybe due from the reservists under 5 U.S.C. §§ 6323 and 5519.

Report all amounts of improper payments resulting from paid military leave for inclusion in the annual Agency Financial Report, as required by the Payment Integrity Information Act of 2019.