In accordance with the Chief Financial Officers Act of 1990 (Public Law 101-576), as amended, the Office of Inspector General (OIG) is required to audit the financial statements of the Federal Housing Administration (FHA) annually. The scope of our audit included FHA’s fiscal years 2015 and 2014 financial statements, which are composed of the balance sheets and the related statements of net cost and changes in net position and the combined statements of budgetary resources for the years then ended, and the related notes to the financial statements. This report presents the results of our audit of FHA’s fiscal years 2015 and 2014 financial statements, including our report on FHA’s internal control and test of compliance with selected provisions of laws and regulations that apply to FHA. 

In our opinion, FHA’s fiscal years 2015 and 2014 financial statements were presented fairly, in all material respects, in accordance with the U.S. generally accepted accounting principles for the Federal Government. 
We identified three significant deficiencies and no reportable noncompliance with selected provisions of laws and regulations that apply to FHA.   We recommended FHA develop, document, implement or strengthen existing internal control policies and procedures to support reliable financial reporting over its receivable, liability for loan guarantee and budgetary balances.  Additionally, we recommended FHA bill the appropriate parties for the $291 million in loans receivable that were unsupported as of fiscal yearend.