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.
We audited Folts, Inc.’s management of the Folts Adult Home and Folts Home projects to address our concern with U.S. Department of Housing and Urban Development (HUD)-assisted health care facilities. We selected this auditee as the result of a risk assessment of nursing homes located in New York State, which considered HUD’s risk indicators and factors such as loan default; internal control issues; and financial statements not…
September 29, 2016
Report
#2016-NY-1010
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), referred alleged violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act based on two audits of DHI Mortgage Company Ltd. (DHIM) that found it did not follow HUD requirements when it underwrote Federal Housing Administration (FHA)-insured loans with prohibited restrictive addenda to the…
September 29, 2016
Memorandum
#2016-LA-1802
The Office of Hospital Facilities (OHF) provides mortgage insurance for acute care hospitals. The insurance it provides reduces risk to lenders and lowers borrowing costs for hospitals. As of May 2016, the unpaid principal balance for its 105 insured mortgages was approximately $7 billion.
OHF collects and generates many records to support its mission. These records include application materials, internal reports,…
September 29, 2016
Report
#2016-OE-0001
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the University Village, LLC in Orem Utah based on previous violations identified by the U.S. Department of Housing and Urban Development (HUD) that found ineligible withdrawals and substandard physical conditions at the property. The objective of our audit was to determine whether University Village complied with its HUD multifamily…
September 28, 2016
Report
#2016-DE-1004
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Wyoming Community Development Authority of Casper, WY, for calendar years 2012-2015. The audit was initiated based on concerns received from U.S. Department of Housing and Urban Development (HUD) officials from the Office of Community Planning and Development program staff in Denver, CO. The objectives of the audit were to…
September 28, 2016
Report
#2016-DE-1005
We audited the Housing Authority of the City of Rock Island, IL’s Housing Choice Voucher program based on the activities included in our 2016 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction. Our audit objective was to determine whether the Authority administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD)…
September 28, 2016
Report
#2016-CH-1007
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, and Johnson County Audit Services, Johnson County, KS, audited the City of Olathe, KS, based on a hotline complaint. Our audit objectives were to determine whether (1) the complainant’s allegations were substantiated, (2) the City listed the proper affordability period for the Neighborhood Stabilization Program (NSP) homes it sold, and (3)…
September 28, 2016
Report
#2016-KC-1005
We audited the City of Huntington Beach’s Community Development Block Grant program due to issues identified by the U.S. Department of Housing and Urban Development’s (HUD) Los Angeles Office of Community Planning and Development. In addition, Office of Inspector General (OIG) data analytics identified timeliness issues with the use of program funding. We also selected the City because it had not been audited by OIG.…
September 28, 2016
Report
#2016-LA-1012
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice and the U.S. Attorney’s Office, Southern District of New York and Northern District of California, in conducting an investigation of Wells Fargo Bank, N.A.’s origination and underwriting of mortgage loans insured by the Federal Housing Administration (FHA).
Based in part on our review, the United…
September 28, 2016
Memorandum
#2016-KC-1803
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), OIG referred alleged violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act based on an audit of Shea Mortgage that found it did not follow HUD requirements when it underwrote loans that had executed and recorded agreements containing prohibited restrictive covenants. HUD’s Office of…
September 28, 2016
Memorandum
#2016-LA-1801
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Boulder County because it is a significant recipient of the State of Colorado’s more than $320 million Community Development Block Grant Disaster Recovery grant, having received grants of more than $6 million. Our audit objective was to determine whether Boulder approved its grants and procured consultants in accordance with…
September 28, 2016
Report
#2016-DE-1003
We audited the Housing Authority of the City of Annapolis’ procurement activities due to a hotline complaint. The complaint alleged that the Authority failed to follow procurement requirements. This is the second of two audit reports on the Authority. Our audit objective was to determine whether the Authority procured services and products using operating and capital funds in accordance with applicable requirements.…
September 27, 2016
Report
#2016-PH-1007
We audited the Harris County Community Services Department’s Community Development Block Grant (CDBG) program based on our risk analysis and as part of our annual audit plan to review community planning and development funds. The audit objective was to determine whether the Department properly administered and adequately documented its CDBG program activities in accordance with U.S. Department of Housing and Urban Development (…
September 27, 2016
Report
#2016-FW-1008
We have completed preliminary research on the Office of Community Planning and Development’s (CPD) methods to allocate Community Development Block Grant Disaster Recovery (CDBG-DR) funds appropriated under the Disaster Relief Appropriations Act of 2013 (PL 113-2). Our objectives were to review the methodology for (1) the seven formula-based allocations and (2) the two competition-based allocations of CDBG-DR funds.
We conducted…
September 23, 2016
Report
#2016-OE-0009S
The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited the Government National Mortgage Association’s (Ginnie Mae) process for identifying and removing uninsured single-family Federal Housing Administration loans from mortgage-backed securities (MBS) pools. Our audit objective was to determine whether loans remained in Ginnie Mae MBS pools for 1 year or longer without the required mortgage…
September 21, 2016
Report
#2016-KC-0002
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,…
September 21, 2016
Memorandum
#2016-KC-1801
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 realtor for the preforeclosure sale entered into a consulting agreement with the purchaser of the property. The agreement required that when the purchaser later sold the property, he would pay half of…
September 21, 2016
Memorandum
#2016-KC-1802
We audited the functionality of the U.S. Department of Housing and Urban Development’s (HUD) New Core Interface Solution (NCIS) for phase 1, release 3, 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 determine whether adequate internal controls were in place for the phase 1, release 3, functionality of…
September 20, 2016
Report
#2016-DP-0004
We audited the calculation process for Public Housing Operating Fund subsidies awarded to public housing agencies (PHA). We initiated this review based on an internal audit suggestion, which was included in our annual audit plan. The objective of the audit was to determine whether the U.S. Department of Housing and Urban Development (HUD) verified Operating Fund calculations to ensure that PHAs received the correct amounts…
September 19, 2016
Report
#2016-NY-0001
We audited the New York State Community Development Block Grant Disaster Recovery (CDBG-DR) assistance-funded New York State Tourism and Marketing program based on the amount of funds drawn down to date and weaknesses identified in prior Office of Inspector General audits. State officials allocated $30 million in CDBG-DR funds to the Tourism and Marketing program, of which $22.4 million had been obligated and disbursed as of…
September 16, 2016
Report
#2016-NY-1009