This report presents the results of our audit of the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2015 compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA).

For the third consecutive fiscal year,  we determined that HUD did not comply with IPERA.  Out of the six requirements, In fiscal year 2015, HUD complied with four (compliance determinations a, c, d, and f) and did not comply with the remaining two (compliance determinations b and e).  Specific areas of noncompliance for fiscal year 2015 were related to HUD’s failure to (1) conduct an annual risk assessment in accordance with the Office of Management and Budget (OMB) guidance and (2) meet its annual improper payment reduction target.  Additionally, we noted some issues concerning (1) the completeness and accuracy of HUD’s improper payment data reporting, including payment recapture audit plans, and (2) the reasonableness of HUD’s improper payment estimate for its Rental Housing Assistance Programs. 

We made 13 recommendations to improve its compliance with IPERA and to address weaknesses identified in HUD’s payment recapture audit plans, rental housing assistance program  improper payment estimation process, and reporting of improper payment information in the agency financial report.