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Hotline

Crime, Fraud, Waste, and Abuse
  • Recommendation Number: 2025-FO-0006-002-A
  • Status: Open
  • Date Issued: May 13, 2025
  • Priority

Update HUD Handbook 1900.40, Do Not Pay policy, to clearly define the responsibilities for all parties and align it with current laws, processes, and procedures. This should include defining responsibilities for preaward and prepayment verification, and developing a process and governance structure to ensure that preaward and prepayment verification are consistently performed across HUD’s programs.

Status

As of January 2026, HUD has not provided a management decision for this recommendation. While HUD reestablished its computer matching agreement with the Department of Treasury through the Treasury Do Not Pay verification portal, HUD has not developed a policy to define responsibilities going forward.

HUD OIG recently initiated  the annual Payment Integrity Information Act (PIIA) audit for fiscal year 2025. During this audit we will work with HUD to determine the status of this recommendation.

Analysis

Updating the HUD Handbook 1900.40 will define responsible parties for ensuring compliance with the Do Not Pay Initiative (DNP).    

The implementation of this recommendation will result in consistent use of DNP, allowing for instant verification of eligibility across the billions in payments that HUD processes, resulting in the reduction of future improper payments.

Publication Report

2025-FO-0006 | May 13, 2025

HUD Did Not Comply With the Payment Integrity Information Act of 2019

HUD did not comply with PIIA because it did not report compliant improper and unknown payment estimates for the Office of Public and Indian Housing’s Tenant-Based Rental Assistance (PIH-TBRA) program and the Office of Multifamily Housing Programs’… more

Related Recommendations

Chief Financial Officer

  •  
    Status
      Open
      Closed
    2025-FO-0006-002-B

    Develop a standard operating procedure to ensure that the OCFO is 1) monitoring the DNP Computer Matching agreement to ensure continuity, 2) reporting accurately on its DNP matching, and 3) working with program offices to adjudicate any payments that are identified as potentially improper during the computer matching process.

  •  
    Status
      Open
      Closed
    2025-FO-0006-002-C
    $212,208,450.00
    Questioned Costs

    Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.

    Work with Multifamily Housing to investigate the 11 of 24 entities with expired SAM.gov registrations to determine if those entities should have received payments totaling $212,208,450 and perform the required follow-up actions once a determination is made.