Open Recommendations

Require the Authority to take action to reclaim its properties valued at $2,032,266 to improve its financial position, decrease its reliance on HUD program funding, and address its comingling issues.

Require the Authority to determine how much of the $243,442 in salaries for individuals assigned to work at multiple properties was improperly paid with Federal funds and repay the amounts to the appropriate programs from non-Federal funds. If the Authority is unable to accurately determine the amount due to and due from each program or support that the funds charged to the Federal programs were appropriate, the full $243,422 should be repaid to HUD.

Require the Authority to determine whether the Authority improperly used Federal funds totaling $40,600 to make lease payments on the parking lot it already owned. If Federal funds were improperly used, the Authority should repay $40,600 from non-Federal funds to its Federal program accounts. If the Authority is unable to accurately determine the amount due to and due from each program or support that the funds charged to the Federal program were appropriate, the full $40,600 should be repaid to HUD.

Require the Authority to determine whether the Authority improperly used Federal funds totaling $11,833 which were used to cancel an existing phone system and purchase a new one. If Federal funds were improperly used, the Authority should repay $11,833 to its Federal program accounts from non-Federal funds. If the Authority is unable to accurately determine the amount due to and due from each program or support that the funds charged to the Federal program were appropriate, the full $11,833 should be repaid to HUD.

Require the Authority to determine whether the Authority improperly used Federal funds totaling $50,000 which were used to pay unnecessary severance contract costs. If Federal funds were improperly used, the Authority should repay $50,000 to its Federal program accounts from non-Federal funds. If the Authority is unable to accurately determine the amount due to and due from each program or support that the funds charged to the Federal program were appropriate, the full $50,000 should be repaid to HUD.

We recommend the Assistant Secretary for Employee Benefits Security provide additional formal guidance to plan administrators to identify and adequately support the fair value of plan assets.

Implement controls to prevent or mitigate instances of borrowers violating HECM program residency requirements by concurrently participating in the Voucher program, including policies and procedures to at least annually coordinate with HUD's Office of Public Housing to match borrower data in the Single Family Data Warehouse to member data in the Public Housing Information Center.

Rec. D.2.a-b: The DoD OIG recommended that the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics include guidance for both accompanied and unaccompanied housing within the Overseas Environmental Baseline Guidance Document for: a) control and remediation of mold; and b) radon evaluation and mitigation.

Take additional steps to ensure aged auxiliary beneficiaries without a Social Security number are alive.

Work with the state of California to obtain and process death information for the 64,193 non-beneficiary numberholders or process the death information contained in the California Department of Public Health data files used for the audit.

Rec. 1.b: The DoD OIG recommended that the Brooke Army Medical Center Commander review, research, and pursue collections on the remaining open delinquent medical service accounts.

The Office of Administration should re-evaluate its audit follow-up process to ensure that open recommendations are closed in a timely manner.

We recommend that the Director of HUD's New York Office of Community Planning and Development instruct Palladia officials to provide documentation to justify that the $1,615,057 in unsupported costs is associated with eligible program activities. Any unsupported costs determined to be ineligible should be reimbursed from non-Federal funds.

We recommend that the Director of HUD's New York Office of Community Planning and Development instruct Palladia officials to strengthen oversight controls over disbursements to ensure that adequate supporting documentation is maintained and complies with applicable regulations.

We recommend that the Director of HUD's New York Office of Community Planning and Development instruct Palladia officials to follow its policies and procedures for record-keeping to maintain records that adequately identify the source and application of funds provided for financially assisted activities.

We recommend that the Director of HUD's New York Office of Community Planning and Development instruct Palladia officials to provide records detailing the funding sources of the non-Federal cash match for the six grant activities reviewed.

We recommend that the Director of HUD's New York Office of Community Planning and Development instruct Palladia officials to provide source documentation to substantiate that the $584,579 in required non-Federal cash matching funds for five of the six program projects reviewed were met.

We recommend that the Director of HUD's New York Office of Community Planning and Development instruct Palladia officials to reconcile its accounting records to ensure that total revenues and expenditures in its general ledgers reconcile to the revenues and expenditures reported in its annual performance reports and LOCCS.

Rec. 53.b: The DoD OIG recommended that the Under Secretary of Defense for Personnel and Readiness, under the authority given to the Secretary of Defense in section 411(d)(3), title 24, United States Code, issue a directive?type memorandum for immediate action (followed by a revision of Department of Defense Instruction 1000.28, "Armed Forces Retirement Home," February 1, 2010) to codify the results from Recommendation 53.a.

The Board should seek legislative changes to disallow service months credited as pay for time lost through an injury settlement when determining service eligibility for an occupational disability.

The Board should seek legislative changes to tax all creditable compensation.

Based on the outcome of the State's investigation and criminal trial, make a referral to HUD recommending administrative sanctions, as appropriate, up to and including debarment of the Authority's former rehabilitation specialist, the Planning District Commission's former deputy director, and the involved contractors.

Require controllers to maintain their own time-on-position records by signing in and out in Cru-X/ART.

Rec. 1.a: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) verify that the General Fund Enterprise Business System posting logic documentation is accurate and complete, and use it to validate General Fund Enterprise Business System general ledger account postings.