Open Recommendations

(U) ???????Rec. 2: The DoD OIG recommended that the Commander of U.S. Cyber Command, the Chiefs of Staff for the U.S. Army and the U.S. Air Force, the Chief of Naval Operations, and the Commandant of the Marine Corps formalize an agreement to focus capability development on functional and mission areas consistent with results of the mission alignment board.

(U) ???????Rec. 2: The DoD OIG recommended that the Commander of U.S. Cyber Command, the Chiefs of Staff for the U.S. Army and the U.S. Air Force, the Chief of Naval Operations, and the Commandant of the Marine Corps formalize an agreement to focus capability development on functional and mission areas consistent with results of the mission alignment board.

Contact all other HUD program offices to determine whether any other programs authorize or are aware of grantees holding funds in advance of their immediate disbursement needs and determine financial statement impact on and compliance with Treasury cash management requirements of any found.

KPMG recommends that the OCIO document and map access rights in OPM systems to personnel roles and functions, following the principle of 'least privilege'.

KPMG recommends that the OCIO enhance OPM’s information security control monitoring program to detect information security control weaknesses by: • Implementing and monitoring procedures to ensure system access is appropriately granted to new users, consistent with the OPM access approval process; and Monitoring the process for the identification and removal of separated users to ensure that user access is removed timely upon separation; implementing procedures to ensure that user access, including user accounts and associated roles, are reviewed on a periodic basis consistent with the nature and risk of the system, and modifying any necessary accounts identified.

The CIO develop a process for managing access to shared user accounts.

The CIO should implement the annual compliance check required by the User Account Management Standard Operating Procedure for Administrator accounts to the shared user accounts.

Develop and implement system-based evaluation criteria and risk-based tools to aid ODA team members in targeting their oversight.

Rec. 2.a: The DoD OIG recommended that the Under Secretary of Defense for Personnel and Readiness, based on the results of Recommendation 1, revise current policies and procedures and integrate existing programs to develop a comprehensive DoD-wide approach to address prevention and response to workplace violence.

Rec. 2.b: The DoD OIG recommended that the Under Secretary of Defense for Personnel and Readiness develop and issue interim, comprehensive DoD-wide policy for the prevention and response to workplace violence until the publication of final policies and procedures.

Rec. 3: The DoD OIG recommended that the Defense Procurement and Acquisition Policy Director for the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics, in coordination with the Under Secretary of Defense for Personnel and Readiness, direct the Defense Acquisition Regulations Council to revise the Defense Federal Acquisition Regulation Supplement to address interim and final contractor requirements for the prevention of workplace violence.

We recommend that, to the extent possible, NARA revisit all site locations and ensure that appropriate and consistent PE, infrastructure, and cabling controls are implemented.  At a minimum, NARA should take the following appropriate steps to remediate the issues identified above, which represent the present risks and flaws applicable to NARA ensure that neat cable management and labeling mechanisms are employed for all sites.

We recommend that, to the extent possible, NARA revisit all site locations and ensure that appropriate and consistent PE, infrastructure, and cabling controls are implemented. At a minimum, NARA should take the following appropriate steps to remediate the issues identified above, which represent the present risks and flaws applicable to NARA Ensure that all server racks, switches, and network equipment are adequately secured from unauthorized access via locked racks.

Reimburse FHA borrowers $25,700 for fees that were not customary or reasonable and $46,510 in discount fees that did not represent their intended purpose.

Reimburse $13,726 to FHA borrowers for the fees that were not customary or reasonable.

Remedy $32,034,623 in unallowable expenditures associated with excessive building sizes for Grant Numbers 2009-ST-B9-0089 and 2009-ST-B9-0100.

Rec. I.1: The DoD OIG recommended that the Assistant Secretary of the Army for Installations, Energy, and Environment review and update its policy to ensure that Army publications properly and consistently address radon assessment and mitigation requirements.

Rectify the issues, including the systems limitations and unresolved diaries found during this review, causing overpayment to not be resolved.

We recommend that HUD's Deputy Assistant Secretary for Grant Programs instruct State officials to provide documentation to support that the $85,309 disbursed for four applicants was calculated correctly. If adequate support cannot be provided, the amount should be repaid to the State's line of credit from non-Federal funds.

(U) ???????Rec. A.5.a: The DoD OIG recommended that the Air Force Chief, Information Dominance Chief Information Officer review the deficiencies identified, require a thorough review of the Air Force Secret Internet Protocol Router Network security safeguards performed at each command, and apply corrective actions as necessary.

Comply with its Management Agent Handbook requirements that stipulate HUD must perform management reviews of the management agent's central office activities as well as regular onsite reviews of functions carried out at the projects. These central office reviews should be performed at least once every 18 months.

Implement controls to prevent or reduce instances of borrowers violating HECM program residency requirements by concurrently participating in multifamily programs, including policies and procedures to at least annually coordinate with HUD's Office of Multifamily Housing Programs to match borrower data in the Single Family Data Warehouse to member data in the Tenant Rental Assistance Certification System.

The Office of Programs should increase the quantity of cases during its quality assurance review for medical examinations and consultative opinions to ensure that the cases reviewed are representative of the number of cases processed each quarter.

The Bureau of Fiscal Operations should strengthen internal controls by establishing a due date for formal responses from all organizations with open obligations to ensure better management of these funds prior to the period of expiration.

The Bureau of Fiscal Operations should establish a follow-up process when responses are not provided within the designated timeframe from all organizations with open obligations.

Issue guidance to help participating jurisdictions accurately report the amount of match contributed and consumed.

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.

Determine the number of 203(k) loans impacted by the incorrect loan-to-value ratio for mortgage insurance premium calculations and when applicable, reimburse borrowers or apply the overpaid premiums as credits toward borrowers' future premium payments.

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.