This page previously contained our independent auditor’s report on HUD’s fiscal year 2016 and 2015 (Restated) consolidated financial statements  (OIG Audit Report 2017-FO-0004), issued November 15, 2016.  In the report, one basis for our disclaimer of opinion was that HUD was unable to provide final consolidated financial statements and accompanying notes in a timeframe that would allow us to obtain sufficient, appropriate evidence to determine if they were free from material misstatement.  After we issued our disclaimer of opinion, we continued our review of HUD’s financial statement presentation and notes and identified material pervasive errors throughout 19 of HUD’s 31 notes and an error in the classification between budgetary and non-budgetary credit program financing accounts on HUD’s statement of budgetary resources.  We brought these errors to the attention of HUD management, and HUD agreed that reissuance was necessary.  HUD withdrew its agency financial report (AFR) and reissued it on March 1, 2017. 

As a result, we withdrew our previously issued independent auditor’s report which was included in this audit report and replaced it with the report included in audit report 2017-FO-0005.  Our reissued independent auditor’s report removes the basis for disclaimer regarding our inability to review the final consolidated financial statements due to management imposed delays in completing the statements.  However, while we audited the reissued consolidated financial statements and notes, our previous audit opinion of a disclaimer remains unchanged due to other material matters that were identified in our audit which continue to support our basis for a disclaimer of opinion.