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c. Fraud, Misrepresentation, and Other Findings (03/14/2016)
i. Standard
The nonprofit must take prompt, effective, and corrective measures to investigate and document suspected instances of fraud, misrepresentation, and other related Findings.
ii. Internal Reporting to Senior Management
The nonprofit’s QC Plan must contain a process for its QC staff to promptly report and document Findings delivered to senior management. Nonprofit staff must report Findings to senior management no more than 15 business days from the date of discovery.
iii. External Reporting to FHA
The nonprofit’s senior management must contact the FHA Resource Center at answers@hud.gov to submit QC Findings. FHA will review the Findings and determine the appropriate course of action.