Open Recommendations

Require the 10 jurisdictions that overstated their excess match balances to remove the overstated amounts from their reported HOME match carry-forward balances.

We recommend that HUD's Deputy Assistant Secretary for Single Family Housing require the lenders to support that the repairs to the properties associated with the 32 loans without evidence of permits complied with local code or reimburse HUD $792,837 for the escrow repair funds.

We recommend that HUD's Deputy Assistant Secretary for Single Family Housing require the lenders to support that the repairs to the properties associated with the six loans were not structural repairs or indemnify HUD for the four active loans with a total estimated loss of $222,073 and reimburse HUD for the actual loss of $83,322 incurred on the sale of two properties associated with FHA case numbers 052-4308836 and 034-8239100.

We recommend that HUD's Deputy Assistant Secretary for Single Family Housing require the lenders to support that the borrower for FHA case number 451-1165810 was not reimbursed for the cost of labor or indemnify the loan with an estimated loss amount of $83,715, based on the loss severity rate of 50 percent of the unpaid principal balance of $167,429 as of January 29, 2015.

Support that the repair conditions and comments indicated in the direct endorsement underwriter form, form HUD-54114, were satisfied for FHA case number 501-8198149. If the repair conditions and comments were not properly addressed, the lenders should indemnify the loan with an estimated loss amount of $39,367, based on the loss severity rate of 50 percent of the unpaid principal balance of $78,733 as of January 29, 2015.

Rec. 6: The DoD OIG recommended that the Army Deputy Chief of Staff for Personnel, the Chief of Naval Personnel, and the Air Force Deputy Chief of Staff for Manpower, Personnel, and Services ensure that programs of instruction for commissioned and noncommissioned officers include the updated guidance regarding religious accommodations contained in Department of Defense Instruction 1300.17.

Reimburse FHA borrowers $376,102 for the unallowable, misrepresented discount fees and $7,110 for fees that were not customary or reasonable.

Develop and implement written policies and procedures with an emphasis on increased controls toward the monitoring, tracking, underwriting, and evaluating of the Section 184 program. Implementing these controls would reduce the current high level of risk in the program and result in potentially $76,967,618 in funds to be put to better use (see appendix A).

Develop and implement policies and procedures for a standardized monthly delinquency report format that lenders must follow when submitting information to OLG.

Develop and implement policies and procedures to deny payments to direct guarantee lenders for claims on loans that have material underwriting deficiencies.

Develop and implement policies and procedures to ensure that OLG uses enforcement actions available under 12 U.S.C. 1715z-3a(g) for lenders that do not underwrite loans according to the Section 184 processing guidelines.

Ensure that only underwriters that are approved by OLG are underwriting Section 184 loans.

Develop and implement written policies and procedures for situations in which the borrower for a Section 184 loan is an Indian housing authority, a tribally designated housing entity, or an Indian tribe.

Reconcile the total list of guaranteed Section 184 loans to the complete loan file storage list and identify and locate any missing loan files.

Rec. 3.b: The DoD OIG recommended that the Commander of the Naval Supply Systems Command implement controls in the Defense Travel System to automatically route all travel orders for travel outside of the continental United States to transportation office personnel to check Patriot Express availability before booking commercial transportation.

Rec. 2: The DoD OIG recommended that the Assistant Secretary of the Navy (Financial Management and Comptroller) develop a process or system interface between Navy Enterprise Resource Planning and Wide Area Work Flow that provides timely processing of transactions and update the Department of the Navy's system business processes to ensure transactions are processed in compliance with the Statement of Federal Financial Accounting Standards 1.

Establish FedRAMP compliance guidelines and oversight for the Department, and ensure that each Operating Administration put plans in place to meet FedRAMP requirements.

Repay HUD $3,119,448 from non-Federal funds for program funds spent on ineligible participants.

Provide supporting documentation for $136,346 in program funds used for participants for whom eligibility could not be determined or repay HUD from non-Federal funds (see appendix D).

Develop sections in release preparation courses that address the post-incarceration medical care and retirement needs of aging inmates.

We recommend that the Department of Homeland Security Deputy Secretary require the Office of Policy to develop and implement a plan to collect, analyze, and report data on the Department's use of prosecutorial discretion to assess immigration enforcement activities and improve future policy. The plan should include steps taken to ensure the completeness and accuracy of the prosecutorial discretion data.

Corrected identified design and operating effectiveness weaknesses in its anti-fraud measures.

Provide support showing that it took proper remedial action regarding five NSP3 grantees that missed the expenditure deadline, thereby putting $3,379,269 to better use.

Work with 134 grantees (29 NSP1 and 105 NSP3) that reported missing expenditure deadlines in DRGR to ensure that expenditure information submitted is accurate and up to date.