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2022-FO-0003-002-B
Status
Closed
Date Issued
December 09, 2021
Closed Date
September 30, 2022
OIG Component Office
Audit
Develop and implement a new process to require the annual validation of the fourth quarter endorsement volume estimation method for the SF Forward model. The process should include a management review and approval control component. The process should be documented and should demonstrate that management’s estimate is based on the analysis of past experiences, current policy, and market considerations, and, if necessary, incorporate improvement recommendations.
Program Office
Housing
Questioned Costs
$0.00
Better Funds Use
$0.00
Publication Report Number
2022-FO-0003

Related Recommendations

Recomendation Status Date Issued Summary
2022-FO-0003-001-A Closed December 09, 2021 Request an opinion from HUD’s Office of the Chief Financial Officer’s Appropriation Law Division on whether the abnormal balance in account 4901 constitutes a violation of the Antideficiency Act.
2022-FO-0003-001-B Closed December 09, 2021 Enhance standard operating procedures around system and account reconciliations to ensure that they cover all possible scenarios and are easy to follow.
2022-FO-0003-001-C Closed December 09, 2021 Appropriately train and monitor new personnel to ensure that they understand and execute the procedures and controls.
2022-FO-0003-001-D Closed December 09, 2021 Update procedures to clearly define error thresholds that require follow-up and the communication process for elevating errors to supervisors, managers, and senior leadership.
2022-FO-0003-001-E Closed December 09, 2021 Establish clear lines of communication within and between divisions to ensure that all personnel become aware of issues that may impact their duties and responsibilities.
2022-FO-0003-001-F Closed December 09, 2021 Strengthen controls over the preparation of HECM-related reconciliations, reviews, and oversight by ensuring that (1) program personnel preparing such reconciliations understand how such reconciliations impact financial accounting and reporting and (2) financial personnel sufficiently understand programs and systems to determine their general ledger impact.
2022-FO-0003-001-G Closed December 09, 2021 Enhance the quarterly variance analysis to identify the business reasons for changes in account balances and pay specific attention to abnormal balances and activity.
2022-FO-0003-001-H Closed December 09, 2021 Strengthen the financial statement review controls by completing a compliance matrix to ensure all balances that are presented and disclosed reflect the most up-to-date financial accounting and reporting guidance.
2022-FO-0003-002-A Closed December 09, 2021 Perform a comprehensive analysis for all cohort years and assess the impact that the use of the scheduled UPB instead of the current UPB has on the LGL. If significant based on a quantitative threshold, update the SF cash flow model to incorporate the current UPB data.
2022-FO-0003-002-C Closed December 09, 2021 Perform a comprehensive review of the SF and HECM model documentation and update the specific sections with the current practices and procedures required to execute the model activities.
2022-FO-0003-002-D Closed December 09, 2021 Establish a process that requires the timely review and update of model documentation. The process should include tracking the dates and nature of the revisions.
2022-FO-0003-002-E Closed December 09, 2021 Provide training and periodic reminders to field staff and management to ensure that the data fields in DAP and on the final Form HUD-290 are accurate and consistent.
2022-FO-0003-002-F Closed December 09, 2021 Develop and implement written procedures that provide guidance or best practices that should be followed to address data anomalies. At a minimum, these written procedures should include the following: (1) a process for identifying key data attributes that significantly impact the results, (2) the determination of preset thresholds for analyst and management attention, (3) the treatment of data anomalies, such as null values or values that exceed preset thresholds, (4) a process for providing feedback to the upstream data provider(s) for corrective and preventive actions when data integrity issues are detected and management concludes the issue is significant, and (5) a process for preparing documentation to support management decisions.