Inspection Auto Flags in the HUD Active Partners Performance System (APPS)

Inspection Auto Flags

Last Fall HUD added inspection auto flags in the Active Partners Performance System (APPS), this addition may have been missed or gone unnoticed by many.  This new development by HUD to make the comments by HUD staff associated with HUD 2530 Flag(s) visible to Business Partners is a significant step towards greater transparency and accountability. It is an excellent way to provide Business Partners with the context and rationale behind the placement of flags, allowing them to respond appropriately.

While many companies are familiar with auto flags in financial audits, the same cannot be said for the APPS inspection flags. Coordinators may not be aware that updating property inspection records for previous participation reporting can trigger an automatic flag.

To address this issue, Secured Systems Consulting recommends that Coordinators save their property submission for new business before sending to HUD.  Run and review their HUD Flag Report. This way, they can proactively address any flags that have been triggered and ensure that their responses are reflected in the HUD 2530 submission. This approach will help to reduce the risk of delays or rejections of submissions due to unresolved flag issues.

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