Obtain repayment of $322,314 from nonproject funds from the management agent for the ineligible bookkeeper and accounts payable clerk’s salary and benefits, incurred during 2014 and 2015.
2017-BO-1003 | January 23, 2017
Staffing Costs and Charges at Pine Grove Health Center, Pascoag, RI, Did Not Always Comply With Regulatory Requirements and Management Agreements
Housing
- Status2017-BO-1003-001-AOpenClosed$322,314Questioned 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.
Closed on December 13, 2018 - Status2017-BO-1003-001-BOpenClosed$139,027Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on December 13, 2018Decrease the payable to the management agent by $139,027 for ineligible employee services billed during 2014 and 2015, thereby reducing future expenditures because project funds will not be used for these ineligible expenses when funds become available.
- Status2017-BO-1003-001-COpenClosed$353,420Questioned 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.
Closed on December 13, 2018Support or decrease the payables to its management agent for the amounts related to ineligible employee services charges before January 1, 2014, which we estimated to be $353,420.
- Status2017-BO-1003-001-DOpenClosedClosed on March 22, 2018
Develop and implement controls over payments to include; ensuring that its management agreement clearly identifies services that are be provided by the management agent and paid for as part of the management fee, and the project is not charged for services that are part of the management fee.
2017-KC-1001 | December 14, 2016
Majestic Management, LLC, a Multifamily Housing Management Agent in St. Louis, MO, Did Not Always Comply With HUD’s Requirements When Disbursing Project Funds
Housing
- Status2017-KC-1001-001-AOpenClosed$17,414Questioned 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.
Closed on January 01, 2026Provide support showing that $17,414 in management fees charged to the projects using a budgeted amount represented actual amounts or repay the difference to each affected project.
- Status2017-KC-1001-001-BOpenClosed$447,345Questioned 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.
Closed on January 01, 2026Provide documentation to support that it paid itself $447,345 for eligible purposes or reimburse the appropriate projects for the balance.
- Status2017-KC-1001-001-DOpenClosedClosed on January 01, 2026
Verify all management fees charged to the projects from 2013 through 2015 were appropriate.
- Status2017-KC-1001-002-AOpenClosed$231,091Questioned 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.
Closed on January 01, 2026Require Majestic Management to reimburse the appropriate projects their portion of $231,091 for work not completed or overbilled.
- Status2017-KC-1001-002-BOpenClosed$462,281Questioned 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.
Closed on January 01, 2026Require Majestic Management to provide support that $462,281 paid for procurements was reasonable or reimburse the appropriate projects for the balance.
- Status2017-KC-1001-003-AOpenClosed$11,184Questioned 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.
Closed on January 01, 2026Reimburse the appropriate projects their portion of $11,184 that it charged for ineligible items.
- Status2017-KC-1001-003-BOpenClosed$48,891Questioned 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.
Closed on January 01, 2026Provide documentation to support that $48,891 was spent for eligible purposes or reimburse the appropriate projects for the balance.
2014-KC-0002 | July 01, 2014
The Data in CAIVRS Did Not Agree with the Data in FHA’s Default and Claims System
Housing
- Status2014-KC-0002-001-BOpenClosed$9,501,619Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
PriorityPriorityWe believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
Closed on March 31, 2026Update selection rules for CAIVRS to provide for complete reporting of all ineligible borrowers to put $9.5 million to better use.