The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) reviewed concerns from a complaint within HUD regarding the physical condition of HUD-insured residential care facilities (RCF).  This review is part of an ongoing effort of the Office of Inspector General (OIG).  At least 10 RCFs had received a score below 31 out of a possible 100 on their most recent Real Estate Assessment Center (...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of grants funded through its resident home-ownership program under the Low-Income Housing Preservation and Resident Homeownership Act of 1990, based on the results we reported for HUD’s program grants for Carmen-Marine Apartments (2015-CH-1010) and West Park Place Condominium (2016-CH-1009) and the preliminary results of our audit of HUD’s program grant for...

The Inspector General Act of 1978 requires the Inspector General to prepare semiannual reports summarizing the activities of the Office of Inspector General for the preceding six-month periods. The semiannual reports are intended to keep the Secretary and the Congress fully informed of significant findings, progress the Agency has made and recommendations for improvement.

We audited general and application controls over the Ginnie Mae Financial Accounting System (GFAS) as part of the internal control assessments required for the fiscal year 2017 financial statements audit under the Chief Financial Officer’s Act of 1990.  Our objective was to review internal controls over the security, integrity, confidentiality, and availability of the data maintained in GFAS. We also reviewed the functionality and...

HUD has a contract with Leidos Innovations Corporation for E-Discovery services using the E-Discovery Management System.  The process for collecting electronically stored information (ESI) and delivering it to customers has two major subprocesses: (1) an initial ESI collection and (2) a keyword search to refine the initial collection results.  OGC’s and Leidos’ collection of ESI does not meet customer demand because processing ESI...

In accordance with the Chief Financial Officers Act of 1990, as amended, we are required to annually audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD) and the stand-alone financial statements of the Federal Housing Administration and the Government National Mortgage Administration (Ginnie Mae). Our objective was to express an opinion on the fairness of HUD’s consolidated financial...

This report was reissued on December 6, 2017 to correct an error in recommendation 2G found in Finding 2.  Recommendation 2G now reflects the correct prior year recommendation that must be reopened. We are required to audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD) annually in accordance with the Chief Financial Officers Act of 1990 as amended. This report supplements our...

This report presents the results of our audit of Ginnie Mae’s fiscal years 2017 and 2016 (restated) financial statements, including our report on Ginnie Mae’s internal control and test of compliance with selected provisions of laws and regulations applicable to Ginnie Mae.  In fiscal year 2017, for the fourth consecutive year, we were unable to obtain sufficient, appropriate evidence to express an opinion on the fairness of the $3.6...

While working with the U.S Department of Housing and Urban Development’s (HUD) Office of Program Enforcement, we noted that the Office of Public Housing did not clearly identify the certifications that public housing agencies were making in the Application for Federal Assistance, SF (standard form)-424.  As a result, we reviewed the guidance concerning the Application, with an objective to determine whether the Office of Public Housing...

In accordance with the statutory requirements of the Digital Accountability and Transparency Act of 2014 (DATA Act) and standards established by the Office of Management and Budget (OMB), we audited the U.S. Department of Housing and Urban Development’s (HUD) Office of the Chief Financial Officer’s (OCFO) compliance with the DATA Act for the second quarter of fiscal year 2017. In the DATA Act Compliance Audit of the U.S. Department of Housing...

The Federal Information Security Modernization Act of 2014 (FISMA) directs Inspectors General to conduct an annual evaluation of the agency information security program.  FISMA, Department of Homeland Security (DHS), Office of Management and Budget (OMB) and National Institute of Standards and Technology (NIST) establish information technology (IT) security guidance and standards for Federal agencies. We conducted this evaluation to assess...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of the disposition of real properties assisted with Community Development Block Grant (CDBG) funds.  We conducted the audit as part of our annual audit plan.  Our audit objective was to determine whether HUD had adequate controls over the disposition of real properties assisted with CDBG funds. We found that HUD could improve its oversight of the...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD’s rulemaking process for its single family note sales program.  This is the second in a series of audits on the note sales program.  The previous audit, 2017-KC-0006, reported that HUD did not conduct rulemaking or develop formal procedures for its single-family note sales program.  This audit examines a different aspect of the...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of safe water requirements for Federal Housing Administration (FHA)-insured loans nationwide.  We conducted the audit based on news reports that identified lead contamination in public water systems across the country and also because of an audit in which we found that HUD did not have adequate controls to ensure that FHA-insured properties located in Flint,...

We audited the functionality of the U.S. Department of Housing and Urban Development’s (HUD) New Core Financial Management Solution as part of the internal control assessments required for the fiscal year 2017 financial statement audit under the Chief Financial Officer’s Act of 1990.  Our objective was to determine whether effective business processes and interface processing controls were in place for the New Core Financial Management...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the HUD’s travel and purchase card programs for fiscal year 2016 based on (1) our annual risk assessment of these programs and (2) our requirement under the Charge Card Abuse Prevention Act of 2012 to periodically review government travel and purchase cards.  The most recent risk assessment found that there was a moderate risk of illegal,...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the HUD’s government purchase card program.  We initiated the review based on our participation in a collaborative effort with other inspectors general under the direction of the Council of Inspectors General on Integrity and Efficiency (CIGIE) to issue a consolidated report to the Office of Management and Budget on government purchase card use...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of disaster grantee procurement processes.  We conducted the audit after prior audits identified procurement issues.  Our objective was to determine whether HUD provided sufficient guidance and oversight to ensure that disaster grantees followed proficient procurement processes when purchasing products and services. HUD did not provide sufficient...

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development’s administration of Economic Development Initiative – Special Project and Neighborhood Initiative congressional grants.  This review was prompted by our Financial Audit Division’s 2012 review, which reported that HUD did not have effective controls to monitor its obligated congressional grant funds.[1]  Our audit...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited Ginnie Mae’s oversight of nonbanks due to the growth of nonbank issuers in the mortgage servicing industry.  Our objective was to determine whether Ginnie Mae responded adequately to changes in its issuer base. We found that Ginnie Mae did not adequately respond to changes in its issuer base.  Specifically, it did not implement policies and...