The Federal Information Security Management Act of 2002 (FISMA) directs the Office of Inspector General (OIG) to conduct an annual evaluation of the U.S. Department of Housing and Urban Development (HUD) 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…

The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s fiscal year 2013 compliance with the user fee requirements in Office of Management and Budget Circular A-25 and the Chief Financial Officers (CFO) Act of 1990.  We initiated the audit based on observations in our audit of the Federal Housing Administration (FHA) annual lender renewal process (Audit Report No. 2010-KC-0002, issued…

Based upon a complaint, we reviewed two Intergovernmental Personnel Act (IPA) agreements as part of a joint assignment with our Office of Investigation and Office of Legal Counsel.  Our objective was to determine whether the U. S. Department of Housing and Urban Development (HUD) violated the Antideficiency Act (ADA)  when it obtained the services of two people through IPA agreements.  During the review, we identified…

Federal organizations have a fundamental responsibility to protect the privacy of individuals and their personally identifiable information (PII) that is collected, used, maintained, shared, and disposed of by agency programs and information systems. The management of U.S. Department of Housing and Urban Development (HUD) programs demands the availability and use of extensive amounts of financial, demographic, and personal information…

We conducted an audit of the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2013 compliance with the Improper Payments Information Act of 2002 as amended by the Improper Payments Elimination and Recovery Act of 2010 (IPERA).  IPERA was enacted to eliminate and recover improper payments by requiring agencies to identify and report on programs that are susceptible to significant improper payments.  IPERA…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) violation report regarding the misuse of a government purchase card in accordance with the Office of Management and Budget’s (OMB) implementing guidance and the Government Charge Card Abuse Prevention Act of 2012.   HUD is responsible for the violation report and the conclusions expressed in the report.  Our objective was to evaluate the fairness…

The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed HUD’s oversight of contracting for architectural and engineering contracts due to a referral involving a multi-State manufactured home inspection contract awarded by HUD in which the contractor received excessive payments.  Our audit objective was to determine whether HUD properly procured and made reasonable payments for its…

We are required to annually audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD) in accordance with the Chief Financial Officers Act of 1990 as amended. This report supplements our report on the results of our audit of HUD’s principal financial statements for the fiscal years ending September 30, 2013 and 2012 (restated). Also provided are assessments of HUD’s internal controls and…

The Federal Information Security Management Act of 2002 (FISMA) directs the Office of Inspector General (OIG) to conduct an annual evaluation of the U.S. Department of Housing and Urban Development (HUD) 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…

We completed an evaluation of the U.S. Department of Housing and Urban Development’s (HUD) property inventory system.  The evaluation was performed at the request of Office of Inspector General (OIG) management due to long standing issues with HUD’s property inventory system.  Our objectives were to determine why HUD did not have a properly working property inventory system in place and the status of procuring a new property…

We conducted an evaluation of the U.S. Department of Housing and Urban Development’s (HUD) toll free phone lines.  Our objective was to determine whether HUD’s phone lines were functioning at optimal levels with regard to phone line operations and the level of customer service provided to the public. Our review disclosed that HUD could not determine (1) whether its toll free phone lines were functioning at an optimal level and…

We audited the U.S. Department of Housing and Urban Development’s (HUD) plans and procedures for data conversion and system interfaces for the implementation of the HUD Integrated Core Financial System (ICFS). We conducted this audit as a component of the testing of general and technical controls for information systems in connection with the annual audit of HUD’s consolidated financial statements. HUD’s effort to modernize its…

We audited the U.S. Department of Housing and Urban Development’s (HUD)’s plans and procedures for data conversion of the HUD Integrated Core Financial System (ICFS). Our audit objective was to review HUD’s readiness to fully implement ICFS and determine whether HUD had properly managed the payments related to data conversion activities. We determined that OCFO incorrectly paid the Integrated Financial Management Improvement Project…

We have completed a review to determine whether HUD followed proper policies and procedures in responding to a breach of personally identifiable information which occurred on September 21, 2012. Specifically, for this incident, we identified what actions were taken and any deficiencies within HUD policies, plans, or current practices. We determined that HUD responded to the incident properly, following United States Computer…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Office of the Chief Human Capital Officer based on concerns about security risks of hard drives in multifunction devices. Our objective was to determine whether HUD had documented and implemented procedures to effectively remove sensitive data from the hard drives of multifunction devices before disposing of them. HUD did not monitor…

HUD OIG conducted an annual limited scope audit of the U.S. Department of Housing and Urban Development’s (HUD) compliance with the reporting requirements of the Improper Payments Information Act of 2002 (IPIA) as amended. Each agency’s inspector general is required to review and report on the agency’s annual financial report and accompanying materials. We performed our audit in conjunction with our audit of HUD’s consolidated…

We audited Gloucester Township, NJ's administration of its Community Development Block Grant funds that it received under the American Recovery and Reinvestment Act of 2009. We selected the Township for an audit because we received two complaints alleging that it misused stimulus funds and overpaid for services and because of our mandate to audit Recovery Act activities. Our audit objective was to determine whether the Township…

In this report, we provide additional details to supplement our Report on the U.S. Department of Housing and Urban Development's (HUD) Fiscal Years 20011 and 2010 Financial Statements, which is included in HUD's Fiscal Year 2011 Agency Financial Report. In OIG's opinion, based on our audit and the reports of other auditors, the financial statements were presented fairly, in all material respects, in conformity with…

We audited the U.S. Department of Housing and Urban Development’s (HUD) compliance with initial expenditure requirements related to six programs funded by the American Recovery and Reinvestment Act of 2009 (ARRA). The objectives of our audit were to determine whether (1) HUD grantees complied with their initial expenditure requirements; (2) recaptures were properly recorded and controls over the recapture process existed and complied…

In response to a request for review from the Office of the Department Operations and Coordination, we are auditing the Office of Labor Relations (Labor Relations) wage restitution and deposit process. We found Labor Relations has weak internal controls over their Deposit account. Our objective was to gain an understanding of the deposit process and determine whether the controls used to administer and distribute restitution payments…