U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Hotline

Report Fraud, Waste and Abuse
March 05, 2015
  • Chief Financial Officer
2015-FO-0004
2015-FO-0004.pdf

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 Federal Housing Administration (FHA) and the Government National Mortgage Administration (Ginnie Mae). Our objective was to express an opinion on the fairness of the financial statements in accordance with U.S. generally accepted accounting principles applicable to the Federal government.   This report presents the results of our audit of fiscal year 2014 and fiscal year 2013 HUD Consolidated Financial Statements, including our report on HUD’s internal control and test of compliance with applicable laws and regulations.

We expressed a disclaimer of opinion on HUD’s fiscal year 2014 consolidated financial statements because of the significant effects of certain unresolved audit matters, which restricted our ability to obtain sufficient appropriate evidence to express an opinion.  These unresolved audit matters relate to (1) HUD’s improper use of cumulative and first-in, first-out budgetary accounting methods of disbursing Community Planning and Development program funds and (2) $6.6 billion in nonpooled loan assets from Ginnie Mae’s stand-alone financial statements that we could not audit because Ginnie Mae could not provide adequate support for us to test these asset balances. This audit report contains eight material weaknesses, and eight significant deficiencies in internal controls, and five instances of noncompliance with applicable laws and regulations.  These weaknesses were due to an inability to establish a compliant control environment, implement adequate financial accounting systems, retain key financial management staff and identify appropriate accounting principles and policies.

HUD OIG’s recommendations to each of the components’findings were made in Audit Report 2015-FO-0002, Interim Report on HUD’s Internal Controls Over Financial Reporting, issued December 8, 2014; Audit Report 2015-FO-0001, Federal Housing Administration Financial Statements Audit, issued November 14, 2014; and Audit Report 2015-FO-0003, Government National Mortgage Association Financial Statement Audit, issued February 27, 2015.