We audited the City of Providence RI’s HOME Investment Partnerships program based on an OIG risk assessment, which ranked the City as the highest risk HOME grantee in New England.  The objective of the audit was to determine whether the City properly committed and disbursed HOME funds in accordance with Federal and U.S. Department of Housing and Urban Development (HUD) rules and regulations. City officials did not properly administer their...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), audited the Kansas City, MO, Health Department’s Lead Safe KC program due to increased media attention on lead-based paint poisoning in the Kansas City area.  Further, we had never conducted an audit of the more than $21.6 million in grants received by the Health Department since 1997.  Our audit objective was to determine whether the Health...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited CitiMortgage’s processing of partial claims.  Our audit objective was to determine whether CitiMortgage filed for partial claims only after completing the loan modifications and reinstating the loans. CitiMortgage improperly filed for 66 partial claims before completing the loan modifications and reinstating the loans. The Federal Housing...

We audited the Housing Choice Voucher and public housing programs at the West Warwick Housing Authority as a result of concerns from the U.S. Department of Housing and Urban Development (HUD) and a hotline complaint.  The audit objectives were to determine whether (1) procurements were executed in accordance with Federal regulations, (2) West Warwick officials established adequate controls over the Housing Choice Voucher and public housing...

We audited Health Concepts Ltd., a management agent that administers six Federal Housing Administration (FHA)-insured nursing homes.  We conducted this audit based on our review of the Pine Grove Health Center.  The review found that Pine Grove’s owners paid salaries for onsite staff that were covered under the management agreement and charged for services that should have been included in the management fee.  Our objectives for...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Section 8 housing assistance payments program of the New Horizons project in Kansas City, MO.  Our objective was to determine whether New Horizons properly verified tenants’ eligibility, requested assistance only for tenants living in the units, retained tenant files for the required period, and properly collected and deposited tenant rents...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), reviewed preforeclosure sales under the Federal Housing Administration (FHA) program in the St. Louis, MO, area.  We found that the purchaser of a property being sold in a preforeclosure sale entered into a consulting agreement with the realtor.  The agreement required that when the purchaser later sold the property, he would pay half of the...

We audited the Federal Housing Administration-insured Burrillville Nursing Home, Incorporated, doing business as Pine Grove Health Center, based on a U.S. Department of Housing and Urban Development (HUD), Office of Inspector General risk assessment.  Additionally, HUD identified Pine Grove as a high financial risk and a potentially troubled facility, and Pine Grove’s auditors reported substantial doubt regarding its ability to continue as...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Majestic Management, LLC, located in St. Louis, MO. Our objective was to determine whether Majestic Management charged only the appropriate fees in managing the projects, properly procured goods and services, and disbursed project funds only for eligible and supported expenses. Majestic Management improperly charged fees to its projects, did not...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the City of Joplin, MO’s Community Development Block Grant Disaster Recovery (CDBG-DR) program because the City was awarded more than $45 million in CDBG-DR funds in April 2012 and received an additional $113 million in May 2013. We previously audited the City’s CDBG-DR program in 2013 and issued audit report 2014-KC- 1002. At that time, the City...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), reviewed preforeclosure sales under the Federal Housing Administration (FHA) program in the St. Louis, MO, area.  We found that a realtor purchased a property in January 2010 using a limited liability company he controlled while also acting as the seller’s agent.   On October 23, 2015, HUD served a complaint on the realtor, alleging...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited James B. Nutter & Company, a Federal Housing Administration (FHA) lender located in Kansas City, MO.  We selected James B. Nutter based on data analysis showing that the servicer might be completing foreclosures faster than the industry standard, which would suggest that it might not be fully using HUD’s loss mitigation tools.  Our...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Poplar Bluff Housing Authority because information obtained from HUD’s Public and Indian Housing Information Center indicated that the Authority appeared to have flat rents set at a rate below 80 percent of the fair market rent in that area.  Our objective was to determine whether the Authority complied with HUD’s flat rent requirements...

We audited the Community Development Block Grant Disaster Recovery (CDBG-DR) assistance grant provided to the State of Rhode Island by the U.S. Department of Housing and Urban Development (HUD) to assist in disaster recovery and rebuilding efforts resulting from damages caused by Hurricane Sandy.  The audit objective was to determine whether State officials obligated and disbursed the grant funds in a timely manner in accordance with HUD...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the State of Missouri’s Community Development Block Grant (CDBG) Disaster Recovery program because it was initially awarded more than $103 million in two CDBG Disaster Recovery grants for storms and flooding that occurred in 2008 and we had not previously audited the State’s activities regarding these funds.  Our audit objective was to...

The U.S. Department of Housing and Urban Development (HUD) - Office of Inspector General audited the Anderson Housing Authority in Anderson, MO’s participation in HUD’s Office of Public and Indian Housing programs.  Our objective was to determine whether the Authority operated its public housing program in accordance with HUD requirements. The Authority did not operate its public housing program in accordance with HUD requirements....

The U.S. Department of Housing and Urban Development (HUD) - Office of Inspector General audited the Lanagan Housing Authority in Lanagan, MO’s participation in HUD’s Office of Public and Indian Housing programs.  Our objective was to determine whether the Authority operated its public housing program in accordance with HUD requirements. The Authority did not operate its public housing program in accordance with HUD requirements. ...

The U.S. Department of Housing and Urban Development (HUD) - Office of Inspector General audited the Pineville Housing Authority in Pineville, MO’s participation in HUD’s Office of Public and Indian Housing programs.  Our audit objective was to determine whether the Authority operated its public housing program in accordance with HUD requirements. The Authority did not operate its public housing program in accordance with HUD...

We audited the Brown County Housing Authority’s Section 8 Housing Choice Voucher program based on our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction  and the activities included in our fiscal year 2015 annual audit plan.  Our audit objectives were to determine whether the Authority (1) appropriately calculated housing assistance payments and (2) maintained required eligibility documentation...

The U.S. Department of Housing and Urban Development – Office of Inspector General audited Berkadia Commercial Mortgage, LLC’s underwriting of the loan to fund the renovation of the Temtor project in St. Louis, MO.  We initiated this audit because the project failed quickly after completion, resulting in a large loss to the Federal Housing Administration insurance fund.  Our audit objective was to determine whether Berkadia properly...