The Offices of Audit and Evaluation supervise and conduct independent and objective audits, evaluations, and other reviews of U.S. Department of Housing and Urban Development (HUD) programs and activities to ensure they operate economically, efficiently, and effectively. This page contains links to our audit and evaluation reports and memoranda.
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD to determine whether it paid servicers’ claims for properties that did not foreclose or convey on time. We initiated this audit due to concerns that HUD overpaid servicers’ claims for FHA insurance benefits.
HUD paid claims for an estimated 239,000 properties that servicers did not foreclose upon or convey on time. HUD paid…
October 14, 2016
Report
#2017-KC-0001
Sons of Divine Providence did not properly oversee the HUD-insured nursing home to ensure that it operated in accordance with its regulatory agreement. By not informing HUD of the lawsuits, the changes in management agents, and the loans, Sons of Divine Providence did not provide HUD the necessary data to understand the risk to the HUD insurance fund. However, when Sons of Divine Providence sold the nursing home and paid…
October 13, 2016
Memorandum
#2017-BO-1801
We audited the Community Development Block Grant Disaster Recovery (CDBG-DR) assistance grant provided to the State of Connecticut by the U.S. Department of Housing and Urban Development (HUD) to monitor the expenditures of CDBG-DR funds as required by the Disaster Relief Appropriations Act. Additionally, the State was ranked first in a risk assessment of the five New England Hurricane Sandy grantees. The audit objective…
October 12, 2016
Report
#2017-BO-1001
We audited the State of Oklahoma because it received $93.7 million in Community Development Block Grant Disaster Recovery (CDBG-DR) allocations for presidentially declared disasters that occurred in 2011, 2012, and 2013. The substantial amount of CDBG-DR funding required a review of the State’s program. Our objective was to determine whether the State obligated and spent its grant in accordance with requirements. …
September 30, 2016
Report
#2016-FW-1010
We audited the State of New Jersey’s Community Development Block Grant Disaster Recovery-funded Superstorm Sandy Housing Incentive Program contract. We conducted the audit because the contract involved a significant amount of funds ($67.7 million), was critical to the implementation of three of the State’s disaster programs, and was terminated less than 1 year into the 3-year contract term. Our objective was to determine…
September 30, 2016
Report
#2016-PH-1009
We audited Baldwin Creek Apartments as part of the activities in our fiscal year 2016 annual audit plan. We selected the project based on our analysis of risk factors related to multifamily projects in Region 5’s jurisdiction1. Our objective was to determine whether the project’s owner and management agents operated the project in accordance with the U.S. Department of Housing and Urban Development’s (HUD)…
September 30, 2016
Report
#2016-CH-1010
We audited the Kentucky Housing Corporation’s administration of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation program for loans insured by the Federal Housing Administration (FHA). We selected the Corporation based on our analysis of risk factors of single-family loan servicers in Region 4’s jurisdiction. Our audit objective was to determine whether the Corporation accurately reported the…
September 30, 2016
Report
#2016-AT-1015
We audited the Dayton Metropolitan Housing Authority’s Public Housing Capital Fund program. We selected the Authority’s program for audit based on our analysis of risk factors related to public housing agencies in Region 5’s1 jurisdiction. The audit was part of the activities in our fiscal year 2016 annual audit plan. Our objective was to determine whether the Authority complied with the U.S. Department of…
September 30, 2016
Report
#2016-CH-1012
We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for West Park Place Condominium (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin) and the activities in our fiscal year 2016 annual audit plan. Our objective was to determine whether the…
September 30, 2016
Report
#2016-CH-1009
We audited the Broward County Housing Authority’s Section 8 Housing Choice Voucher program as part of the activities in our fiscal year 2016 annual audit plan. Our objective was to determine whether the Authority administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements.
The Authority did not always comply with HUD’s requirements and its own administrative…
September 30, 2016
Report
#2016-AT-1014
We audited Mortgage Services III, LLC, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of the activities in our fiscal year 2016 annual audit plan. We selected Mortgage Services for review based on an analysis of data in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Data Warehouse system for single-family lenders with home offices in Region 5’s jurisdiction.…
September 30, 2016
Report
#2016-CH-1011
We audited the Inglewood Housing Authority’s financial management of its Housing Choice Voucher program due to a hotline complaint allegation and the U.S. Department of Housing and Urban Development (HUD), Los Angeles Office of Public Housing’s concerns about the Authority’s financial management of its program. Our audit objective was to determine whether the Authority managed the financial operations of its program in…
September 30, 2016
Report
#2016-LA-1013
We audited the Lucas Metropolitan Housing Authority’s public housing program as part of the activities in our fiscal year 2016 annual audit plan. We selected the Authority based on the results of a risk assessment of housing agencies in Region 5’s1 jurisdiction. Our objective was to determine whether the Authority complied with the U.S. Department of Housing and Urban Development’s (HUD) and its own procurement…
September 30, 2016
Report
#2016-CH-1013
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, assisted the Department of Justice, Civil Division, Commercial Litigation Branch and the U.S. Attorney’s Office of the Northern District of Georgia in the civil investigation of Branch Banking and Trust Company (BB&T).
Based in part on our review, the Federal Government alleged that BB&T violated the False Claims Act when it…
September 30, 2016
Memorandum
#2016-AT-1802
We audited the Housing Opportunities Commission of Montgomery County’s Housing Choice Voucher program because (1) it had a large program receiving more than $82 million in fiscal year 2015, (2) it had the second largest number of housing choice vouchers of non-Moving to Work housing agencies within the jurisdiction of the Philadelphia region, and (3) we had not audited its program. Our audit objective was to determine whether…
September 29, 2016
Report
#2016-PH-1008
We audited P.K. Management Group, Inc. (PKMG), a contracted field service manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2016 annual audit plan and because it was the sole contractor performing property preservation and protection services for U.S. Department of Housing and Urban Development (HUD)-acquired properties located in Illinois in Region’s 5 jurisdiction.…
September 29, 2016
Report
#2016-CH-1008
We audited Park View Care Center’s owner based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Departmental Enforcement Center. Our objective was to determine whether the property owner complied with the owner’s regulatory agreement and HUD requirements for the Section 232 program. Park View’s owner did not comply with all the terms of its regulatory agreement and HUD requirements. …
September 29, 2016
Report
#2016-FW-1009
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of legal costs at housing agencies participating in the Moving to Work Demonstration program based on (1) congressional concerns, (2) concerns from a previous external audit, and (3) our initiative to focus HUD management’s attention on problem areas on which we and others have reported over the years. Our audit objective was to determine whether…
September 29, 2016
Report
#2016-PH-0004
We audited HUD’s compliance with the fiscal year 2015 travel and purchase card programs based on our required fiscal year 2014 risk assessment, which determined the U.S. Department of Housing and Urban Development’s (HUD) agencywide charge card program to be at medium risk for fraud. Offices of inspector general are required to (1) conduct periodic assessments of the agency charge card programs, (2) perform analyses or audits as…
September 29, 2016
Report
#2016-FO-0006
We audited the U.S. Department of Housing and Urban Development’s (HUD) controls over its certifications of State disaster recovery grantee procurement processes. We initiated the audit after prior audits identified issues with the procurement certification completed for the State of New Jersey. Our objective was to determine whether HUD certifications of State disaster grantee procurement processes were accurate and…
September 29, 2016
Report
#2016-PH-0005