We performed the 22nd review of the Lower Manhattan Development Corporation’s (LMDC) administration of the $2.783 billion in Community Development Block Grant (CDBG) Disaster Recovery funds awarded to the State of New York in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center in New York City.  The objective of the audit was to determine whether LMDC administered its Disaster Recovery-funded…

On April 17, 2018, the Office of Program Enforcement issued a letter stating that it had reached a resolution under a Program Fraud Civil Remedies Act of 1986[1] case regarding Summit Bradford Apartments located in Tulsa, OK, following its review.  The Government alleged that the owner submitted 40 false claims under the Act.  The Office of Program Enforcement included with its letter the March 28, 2018, settlement agreement…

While performing audit work to determine whether the U.S. Department of Housing and Urban Development’s Office of Community Planning and Development (HUD CPD) monitored and ensured that grantees complied with the 24-month statutory expenditure requirement contained in the Disaster Relief Appropriations Act, 2013, we noted issues with (1) the recording of grants in the Line of Credit Control System (LOCCS) and (2) the grantees’…

This report presents the results of our audit of the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2017 compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA). Fiscal year 2017 marked the fifth consecutive year in which we determined that HUD did not comply with IPERA.  We reviewed HUD’s compliance with the six IPERA requirements.  Of the six IPERA requirements, HUD did not…

We audited the Greensboro Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion.  Our objective was to determine whether the Authority administered its RAD conversion in accordance with U.S. Department of Housing and Urban Development (HUD) requirements.  Specifically, we wanted to determine whether the Authority (1) executed appropriate written agreements, (2) ensured that project financing sources…

We audited the City of Dallas’ HOME Investment Partnerships program, specifically, its reconstruction program.  A City auditor’s report, multiple news articles, and U.S. Department of Housing and Urban Development (HUD) monitoring reviews identified issues with the City’s Federal funds and record keeping.  Our audit objective was to determine whether the City followed HOME regulations and its own policies and procedures when…

We reviewed the Texas General Land Office in accordance with the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) goal to review disaster funding and based on a congressional request for HUD OIG to conduct capacity reviews for Hurricanes Harvey, Irma, and Maria grantees.  Our audit objectives were to determine whether the State of Texas had the capacity to follow Federal procurement…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Native American Programs’ Indian Housing Block Grant program.  We selected the program based on the results of a previous audit (audit report 2017-LA-1007) and concerns about the accuracy and completeness of tribal enrollment numbers that HUD used to allocate program funds to eligible Native American grantees.  Our audit objective was to…

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 reporting of drug control accounting and associated management assertions for fiscal year 2017.  The objective of our attestation review was to and to provide negative assurance on HUD’s drug control accounting reporting to the Office of National Drug Control…

We audited Diamond Park because of concerns raised by the U.S. Department of Housing and Urban Development’s (HUD) Departmental Enforcement Center regarding the management of the project and we had never audited it.  Our audit objective was to determine whether the owner managed the project in accordance with its regulatory agreement and HUD requirements.  We focused the audit on reviewing (1) participant eligibility and…

We audited the City of Moreno Valley’s Community Development Block Grant (CDBG) program, based on a referral from the Office of the Inspector General’s Los Angeles Office of Investigation, identifying the concerns of the Los Angeles Office of Community Planning and Development that the City did not properly charge salaries to the CDBG code enforcement program.  The objective of our audit was to determine whether the City…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Spokane Housing Authority due to the Authority’s participation in the Rental Assistance Demonstration Program (RAD), which was a priority for the Office of Audit.  Our objective was to determine whether the Authority followed relocation requirements during its RAD conversion of the Parsons Apartments. We found that The Authority…

We audited the North Carolina Department of Commerce’s Small Cities Community Development Block Grant as part of the activities in our annual audit plan.  Our audit objectives were to determine whether the Department of Commerce (1) awarded funds to local governments that met a CDBG national objective, (2) spent funds only for activities that were eligible and supported, and (3) included all methods of distribution in its action…

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…

We audited the Crisfield Housing Authority’s Housing Choice Voucher program because we received a hotline complaint alleging that it misused public housing assets and we had never audited the Authority.  Our audit objective was to determine whether the Authority (1) ensured that families met eligibility requirements, (2) properly admitted families from the waiting list, (3) correctly calculated housing assistance payments and…

We audited the City of South Gate’s Community Development Block Grant (CDBG) program.  We selected the City based on our risk analysis of Los Angeles area grantees and prior monitoring concerns identified by the U.S. Department of Housing and Urban Development (HUD) with the City’s code enforcement activities.  The objective of the audit was to determine whether the City administered its CDBG funds in accordance with HUD…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Federal Housing Administration (FHA)-insured loans from calendar year 2016.  Our audit objective was to determine whether FHA insured loans to borrowers with delinquent Federal debt or who were subject to Federal administrative offset for delinquent child support.FHA insured an estimated 9,507 loans worth $1.9 billion, which were not…

We audited the U.S. Department of Housing and Urban Development’s (HUD) multifamily program based on the results of our audit of Village North Apartments, Salt Lake City, UT (HUD Office of Inspector General (OIG) audit report 2017-DE-1001).  During that audit, we found indications that tenants were able to move into units and become heads of household without being put on the established waiting list.  Our objective was to…

We audited information system controls over the U.S. Department of Housing and Urban Development’s (HUD) computing environment.  This review was conducted as part of our audit of HUD’s financial statements for fiscal year 2017 under the Chief Financial Officer’s Act of 1990.  Our objective was to assess general controls over HUD’s computing environment for compliance with HUD information technology policies and Federal…

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…