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Report Fraud, Waste and Abuse
November 14, 2019
  • Housing
2020-FO-0001
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Full Report
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This report presents the results of our audit of FHA’s principal financial statements and notes for the fiscal years ending September 30, 2019 and 2018, including our report on FHA’s internal control and test of compliance with selected provisions of laws, regulations, contracts, and grant agreements.

In our opinion, FHA’s fiscal years 2019 and 2018 financial statements were presented fairly, in all material respects, in accordance with the U.S. generally accepted accounting principles for the Federal Government. Our opinion is reported in FHA’s Fiscal Year 2019 Annual Management Report. The results of our audit of FHA’s principal financial statements and notes for the fiscal years ending September 30, 2019 and 2018, including our report on FHA’s internal control and test of compliance with selected provisions of laws, regulations, contracts, and grant agreements applicable to FHA, are presented in this report. Our audit disclosed one significant deficiency in internal controls and no instances of noncompliance with applicable laws, regulations, contracts, and grant agreements, which are discussed further in the body of this report.

Recommendations

Housing

  •  
    Status
      Open
      Closed
    2020-FO-0001-001-A
    Closed on September 28, 2020

    Ensure that the HECM cash flow model assumptions capture all valid assignments or provide an analysis showing that the model results are not biased due to the exclusion of valid HECM assignments.

  •  
    Status
      Open
      Closed
    2020-FO-0001-001-B
    Closed on September 28, 2020

    Document and implement policies and procedures to ensure that data observations for key assumptions that are inconsistent with FHA’s understanding of program operations are researched and further analyzed and that all results are concurrently documented and included in the model documentation.

  •  
    Status
      Open
      Closed
    2020-FO-0001-001-C
    Closed on March 24, 2020

    Update the posting models to ensure that refunds relating to payments made in prior years are properly recorded in accordance with OMB Circular A-11.

  •  
    Status
      Open
      Closed
    2020-FO-0001-001-D
    Closed on January 30, 2020

    Correct the programming error in the HERMIT system to ensure that the correct insurance-in-force balances are reported on the note disclosures.

  •  
    Status
      Open
      Closed
    2020-FO-0001-001-E
    Closed on January 29, 2020

    Develop policies and procedures to ensure that the line items in the required note disclosures are understood, properly calculated, and properly disclosed in the financial statements in accordance with OMB Circular A-136.