In accordance with the Chief Financial Officers Act of 1990, as amended, we are required to annually audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD) and the stand-alone financial statements of the Federal Housing Administration and the Government National Mortgage Association (Ginnie Mae). Our objective was to express an opinion on the fair presentation of HUD’s consolidated financial statements in accordance with U.S. generally accepted accounting principles applicable to the Federal Government. This report presents our independent auditor’s report on HUD’s fiscal year 2019 consolidated financial statements and reports on internal controls and compliance with laws, regulations, contracts, and grant agreements.
We expressed a qualified opinion on HUD’s fiscal year 2019 consolidated financial statements because of the significant effects of certain unresolved audit matters, which restricted our ability to obtain sufficient, appropriate evidence about HUD’s other noncredit reform loans and other liabilities resulting from Ginnie Mae’s guaranty asset and guaranty liability. This report contains one material weakness, three significant deficiencies, and three instances of noncompliance with applicable laws, regulations, contracts, and grant agreements. Additional details on the material weakness, significant deficiencies, and instances of noncompliance with laws, regulations, contracts, grant agreements, and related recommendations are included in separate audit reports entitled (1) Additional Details To Supplement Our Fiscal Year 2019 U.S. Department of Housing and Urban Development Financial Statements Audit (audit report 2020-FO-0003); (2) Federal Housing Administration Fiscal Years 2019 and 2018 Financial Statements Audit (audit report 2020-FO-0001); and (3) Audit of the Government National Mortgage Association Fiscal Year 2019 Financial Statements (audit report 2020-FO-0002).
We make no recommendations in this report because it is supplemented by three separate reports as described above to provide specific recommendations to HUD management.