We audited the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant program’s direct home-ownership assistance activities.  We conducted the audit because it was included in our audit plan based on recent HUD, Office of Inspector General, audits that found issues with home-ownership assistance in the HOME Investment Partnerships program.  Our audit objective was to determine whether HUD…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development’s (CPD) risk assessment and monitoring of its State Community Development Block Grant (CDBG) recipients.  We started this assignment due to significant findings reported on the State of Oklahoma CDBG-Disaster Recovery (CDBG-DR) audit (2016-FW-1010) and HUD’s lack of monitoring the State since fiscal year 2011.…

Enforce the requirement for all HUD web applications and services to be approved and authorized by OCIO. The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials. Corrective Action Taken In January 2023, HUD's Office of the Chief Information Officer developed and released a Web Applications Directive to all HUD…

We received a referral from the Quality Assurance Division of the U.S. Department of Housing and Urban Development’s (HUD) Philadelphia Homeownership Center concerning a borrower who allegedly made false statements to obtain Federal Housing Administration (FHA) mortgage insurance.  The borrower provided false and conflicting employment and income information, which was used in originating and obtaining an FHA loan.  Further…

We conducted an attestation review of the U.S. Department of Housing and Urban Development (HUD), Office of Special Needs Assistance Continuum of Care Program, regarding drug control accounting and associated management assertions for fiscal year 2016.  The objective of our attestation review was to evaluate HUD’s financial reporting and assertions for drug control funds to determine if its reporting was in compliance with…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Office of Multifamily Housing Programs due to a previous audit of a cooperative housing property, which charged more for its Section 8 units than for its non-Section 8 units.  Our objective was to determine whether owners of cooperative housing properties charged more for their Section 8 units than for their non-Section 8 units. We…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD’s Office of Community Planning and Development’s (CPD) process for making changes to its programs, policies, and operations.  We initiated the audit because of concerns we had with HUD’s disaster recovery delivery sequence and duplication of benefits policies during a previous external audit (Audit Report 2016-DE-1003). Our…

The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited HUD to determine whether it ensured that lenders properly processed voluntary terminations of insurance coverage on single-family Federal Housing Administration (FHA) loans and disclosed all implications of the terminations to the borrowers.  We initiated this audit because of our concern that borrowers might not be aware of the rights…

We audited the U.S. Department of Housing and Urban Development’s (HUD) required conversion program activities to determine whether HUD ensured that public housing agencies (PHA) properly evaluated their distressed units and converted them to tenant-based rental assistance programs.  We selected this program for review based on an approved internal audit suggestion in our annual audit plan.  Our audit objective was to…

This report presents the results of our audit of the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2016 compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA). For the fourth consecutive fiscal year,  we determined that HUD did not comply with IPERA.  Of the six requirements, HUD complied with four (compliance determinations a, c, d, and f) and did not comply with the…

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Community Planning and Development’s (CPD) Section 108 Loan Guarantees program.  We conducted the audit as part of our annual audit plan.  Our audit objectives were to determine whether HUD had adequate oversight of Section 108 loans to ensure that funds were effectively used to meet a Community Development Block Grant national objective and…

Twenty-two Promise Zones were selected through three rounds of national competition. The U.S. Department of Housing and Urban Development (HUD), oversees 14 urban Promise Zones, and the U.S. Department of Agriculture (USDA) oversees 8 rural and tribal Promise Zones. The Office of Management and Budget (OMB) tasked HUD and USDA to lead the Promise Zone initiative and play essential roles in gathering information about progress in…

This report is for informational purposes only and does not represent an OIG perspective or position. The Robert T. Stafford Disaster Relief and Emergency Assistance Act was designed to bring an orderly and systematic means of Federal disaster assistance for State and local governments to carry out their responsibilities to aid citizens.  Although, State and local governments may carry out their responsibilities in an orderly and…

The Office of Community Planning and Development (CPD) manages $15.2 billion in disaster recovery funding appropriated by Congress in the Disaster Relief Appropriations Act of 2013 (Sandy Supplemental). CPD distributed the funds to 34 grantees as Community Development Block Grants-Disaster Recovery (CDBG-DR). CPD uses a risk analysis process to rank grantees that pose the greatest risk to the integrity of its programs. According to…

We audited the U.S. Department of Housing and Urban Development’s (HUD) procurement of major service contracts by the Office of the Chief Procurement Officer (OCPO) as part of our fiscal year 2016 audit plan and due to a hotline complaint regarding a contract for scanning services.  Our audit objective was to determine whether HUD had adequate procedures in place to plan and monitor major service contracts to prevent waste and…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of Federal Housing Administration (FHA)-insured loans originated with borrower-financed downpayment assistance.  The audit was initiated based on the results from three HUD, Office of Inspector General (OIG) audits, which determined that lenders allowed FHA borrowers to finance their own downpayments through an increase in their mortgage interest…

The Digital Accountability and Transparency Act of 2014 (DATA Act) and implementation guidance provided in the Office of Management and Budget Memorandum M-15-12 mandates that Federal agencies must report their financial, budgetary and programmatic information to the USASpending.gov web site by the statutory May 2017 deadline. In our second of two Data Act Readiness Reviews, OIG reviewed the U.S. Department of Housing and Urban…

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). HUD reissued its fiscal year 2016 and 2015 (Restated) consolidated financial statements due to pervasive material errors that were identified by us. Our objective was to express an opinion on the fairness of HUD’s…

We reviewed the general and application controls over the Federal Housing Administration’s (FHA) Single Family Premiums Collection Subsystem – Periodic (SFPCS-P) and Single Family Acquired Asset Management System (SAMS) as part of the internal control assessments required for the fiscal year 2016 financial statement audit under the Chief Financial Officer’s Act of 1990.  Our objective was to review the general and application…

We audited the U.S. Department of Housing and Urban Development’s (HUD) computing environment as part of the internal control assessments required for the fiscal year 2016 financial statement audit under the Chief Financial Officer’s Act of 1990.  Our objective was to assess the effectiveness of the controls over the New Core Interface Solution (NCIS) and PRISM™ and the impact of the implementation of release 3 of phase 1 of the…