Audit Expenses

Submitted expenses are audited based on criteria set by Freddie Mac. Audit criteria (for example, a percentage of submitted loans), is subject to change. If an expense is selected for audit, Servicers will be notified via email notification that a new audit expense has been added to the Audit Queue.

Refer to Notifications and Reports for more information. Servicers are required to verify and update expenses as needed, attach supporting documentation, and submit the Audit Expense (response) to Freddie Mac no later than the Service Level Agreement (SLA) as stated on the Dashboard (Home page). The standard SLA deadline is seven business days and is subject to change.

Refer to the Dashboard for the total number of records in the Audit Queue and how many are approaching the deadline. As you review and submit an updated expense, the expenses in the Audit Queue will decrease accordingly.

How to Access Audit Expenses

There are two paths to view Audit Expenses. Perform the following steps to access.

From the PAID home page Dashboard, click on the Release Queue total records in the Release (Expenses) Queue. The Audit Expense page displays. OR

From the top navigation bar:

Click on Released Expenses.
Click on Audit Expenses. The Audit Expenses page displays.

Understanding the Audit Expenses Page

The Audit Expenses page lists the expenses that have been selected based on audit criteria set by Freddie Mac. Expenses listed on this page require supporting documentation to be attached at the expense level and resubmitted to Freddie Mac for review.

Section 1: Summary Information
Section 2: Expense Information (Expense Level)

Section	Description
Section 1: Summary Information	Displays total number of expenses in the Audit Queue. The list of expenses can be filtered and/or sorted according to selected criteria.
Section 2: Expense Information Symbols	The icon displays if there are comments associated with the expense. The icon displays if there are supporting documents attached for the expense. The icon displays if the expense is being edited by another PAID user. The icon displays when an expense is associated to a prior expense selected for audit and denied.
Section 3: Expense Information	Audit expenses are listed by expense code in descending order of submission date. Expense data includes the following: Expense Code Expense ID Freddie Mac Loan Number RPA (request for prior approval) indicator formatted as 'YES' or 'NO'. Servicer Loan Number Submitter Name and Organization Submitted date The days remaining to meet the audit requirements (i.e. to submit supporting documentation to Freddie Mac) The Requested, Adjusted, and Approved Amounts Click here for a complete list of data elements and their descriptions for this section.
General Navigation	Click the forward and backward arrows or applicable page number to display results. The number or results per page defaults to 10. Click on 25 or 50 to maximize the results viewed per page.

Audit Expenses

What do you want to learn about?

How to Filter Audit Expenses

How to Sort Audit Expenses

How to Filter Audit Expenses

The list of expenses on the Audit Expenses page can be filtered using one or more criteria. Click here for information on available filter criteria.

To filter the list of Audit Expenses, complete the following steps.

Click on the Filter By drop-down menu to select one or more criteria to narrow (filter) the list of Released Expenses.
When you have selected/entered all desired filter(s) click on one of the following:

Clear All: To remove filter(s) selected while remaining on the Filter By menu
Cancel: To remain on the Audit Expenses page without the list of expenses.
Apply Filter: To redisplay the Audit Expenses list according to the criteria selected.

To remove any filter criteria you wish to deselect, click on the X (‘pill’). The sorted list is displayed with the remaining filter criteria applied.

To add filter(s), click on the Filter By drop down menu to selected additional filters to add to the criteria already selected.
The Audit Expense list displays applying the filter(s) selected. $C:\Users\f228267\AppData\Local\Temp\SNAGHTML3614f8.PNG$ .

Note: You can apply filters and sort criteria (at the same time) to further narrow and refine the list of Audit Expenses. Refer to How to Sort the List of Audit Expenses for more information.

How to Sort Audit Expenses

Sort the list of Audit Expenses in queue using up to four criteria. Click here for more information to view available sort criteria.

To sort, complete the following steps:

Click on Sort Expense Information Fields. The available sort criteria displays.
Select the ‘first by’ criteria to sort the list of expenses. The sort by list displays indicating the first sort criterion and the ability to further sort the selected criteria in the following ascending or descending order depending on the criteria chosen:

Alpha (A-Z or Z-A)
Highest or lowest
Numeric (0-9 or 9-0)
Oldest or Newest

To determine the order per criterion (i.e. ascending or descending order), click on the circle to the left of each criterion.

To remove a chosen criterion, click on the .
Repeat steps 2 -4 to select up to a total of four sort criteria.
- Click on the Clear All hyperlink to deselect the chosen sort criteria
- Click on Cancel to remain on the Audit Expenses page
- Click on Apply Sort to apply the sort criteria selected.
From the list of sorted Audit Expenses, selected sort criteria are displayed.

To remove any search, click on the X (‘pill’) for the criterion you wish to deselect. The sorted list is displayed with the remaining sort criteria.
To add sort criteria, click on the Sort Expense Information Fields hyperlink to select additional criteria to add to the sort criteria already selected.

Click on Cancel to remain on the Audit Expenses page with the selected sort criteria.
Click on Apply Sort. The Audit Expenses are resorted according to the chosen sort criteria.

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Note: You can apply sort and filter criteria (at the same time) to further narrow and refine the list of Audit Expenses. Refer to How to Filter the List of Audit Expenses for more information.

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Audit Expenses Page Sort Criteria

Hover over each criteria name to view a description.

Amount Requested
Expense Code
Servicer Loan Number
Submitted Date
Submitting Organization

(Audit) Review Expense Detail

The Review Expense page for audited expenses provides loan details, expense information, a section to add supporting documentation, comments history, and other expenses in queue (if applicable).

What do you want to learn about?

How to View Audit Expense Detail

How to Add Supporting Documents to an Audited Expense

How to Submit an Audit Expense

How to View Audit Expense Detail

To view expense detail, click on an Expense ID on the Audit Expenses page. The Review Expense page displays.

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The (Audit Expense) Review Expense page has several sections as noted in the table below.

(Audit Expense) Review Expense Page-Loan Details Section
Section	Description
Section 1: General Information	Displays the Freddie Mac and Servicer Loan Numbers, property address, Servicer Name and status for the loan associated with the Audited Expense.
Section 2: Loan Details-Expense Information	Loan Details displayed includes the following: Loan Details Expense Information includes the oldest and current DDLPI, loan type, unpaid principal balance, and property value for the loan associated with the Audit expense. Click on the arrow to expand the Loan Details section to view additional sections to include: Repurchase Information Workout Information Liquidation Information Auctioneer Information (if applicable) Transfer of Servicer Negotiated Deal (if applicable)
Section 3: Comments History	A Comments History Displays a historical record of comments associated with the individual expense. Comments are color coded to indicate who entered the comment: The Comments HIstory section displays the following data fields for each comment: PAID Username Expense ID Reason - Freddie Mac's comments include the reason the expense was released Date & Time Comment text (1,000 character max) You should continue to view/check for comments in the Reimbursement System (Vendorscape®) until November 30, 2021. After this date, the Reimbursement System will be retired and the full comments history for an expense can be accessed in PAID.
Section 4: Expenses in Queue	To alleviate the need to return to the Released Expense page, Servicers can manage multiple released expenses for the same loan from the Review Expenses page. For each Expense in Queue, expense information includes the expense code, requested, adjusted and approved amounts, the expense from and to date, work completed and expense paid date. A history of Comments is also included. Edit and Withdraw icons will appear to the right of expenses in queue in this section; however, they will not be active.

(Audit Expense)- Review Expense General Navigation
Data Element	Description
	Click on the arrow to the left of the Review Expense page title to return to the Release Expense page.
	Freddie Mac loan number associated with the expense(s) is listed at the top of the page to the right of the title.
	Click the forward and backward arrows or applicable page number to display results. The number or results per page defaults to 10; however, you can select to display 50 per page.

Below is an example of the Loan Details section. Additional sections are displayed when you click on the arrow (to expand the section). Click on each section arrow to expand the individual section to view additional details. $C:\Users\f228267\AppData\Local\Temp\SNAGHTMLb5185a.PNG$

How to Add Supporting Documentation to an Audited Expense

Missing documentation is a common reason the expense is released back to the Servicer. Complete the following steps to add supporting documents to your Released Expense:

Click on Select files to browse and select documentation (from your desktop or Local Area Network (LAN) to add (attach) to the Released Expense. Click on Open. A specific naming convention is not required as the selected document(s) are added at the expense level.
The selected document(s) display in the Selected Files section of the Expense Information section on the Review Expense page.
To remove selected document, click on the Trash Can icon to the right of the file(s) you wish to delete (deselect). A pop-up message displays to Confirm the Deletion.

Click on Cancel to remain on the Review Expense page.
Click on Delete to confirm the deletion. The file is removed from the Add Supporting Documentation section.

How to Submit an Audit Expense

Complete the following steps to view and submit an updated Audited Expense to Freddie Mac.

Review loan details, expense information and comments history (as applicable). Refer to How to Add Supporting Documentation to an Audited Expense for information on attaching supporting documents to an expense.
Click on Submit Expense to resubmit the updated Audit expense to Freddie Mac.

If the expense, loan, and/or Servicer has a Suspend Reimbursements status and the user clicks Submit Expense, the expense status will change to "Denied" and the following message displays:

"Expense Denied, Loan has been identified as Suspend Reimbursement."

The Comments pop-up box displays. Enter up to 500 characters. The characters remaining will decrease as comments are typed:

Click on Cancel to remain on the Review Expense page. Attach Supporting Documentation as needed and click on Submit.
Click on Proceed With Submission to submit the expense without supporting documentation. The expense will be denied as indicated.

If you submit an expense and have not attached supporting documentation, a Warning message displays:

Click Cancel to remain on the Review Expense page.
Click on Submit to send the updated expense to Freddie Mac. The following message displays.

The Audited Expenses page displays with the total record count reduced accordingly.
Repeat the steps above to review audit expense information and add supporting documentation for the remaining items in your Audit Queue, no later than the required deadline (SLA).

Expenses in Audit Denied Status

When an expense gets denied out of Audit, it will have an expense status of Audit Denied. Additionally, if a subsequent expense is submitted and it is deemed a duplicate to an expense that was previously denied out of audit (determined by system rules), then the following will occur:

The expense will be routed to queue.
The expense will show a status of “Under Review” where it will be in queue for an additional review.
The following message will be generated:

Users can resubmit an expense that was previously denied out of audit as a new expense if they wish to appeal the expense.