We audited the Office of Labor Relations deposit account based on a request from the Acting Director of the Office Labor Relations. The Acting Director was concerned with internal controls over the deposit account. The objective of our review was to determine whether (1) controls used to administer and distribute restitution payments were adequate and (2) the correct workers received the restitution payments. Labor Relations violated the…

We audited the U.S. Department of Housing and Urban Development’s (HUD) State Community Development Block Grant (CDBG) Hurricane Disaster Recovery program for hurricanes that hit the Gulf Coast States from August 2005 through September 2008. Our audit objective was to assess the program overall. Specifically, we wanted to (1) determine what had been accomplished using the funding and the funds remaining to be spent; (2) compare actual versus…

We conducted an audit of the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2012 compliance with the Improper Payments Information Act of 2002 as amended by the Improper Payments Elimination and Recovery Act of 2010 (IPERA).  The statute was enacted to prevent the loss of billions in taxpayer dollars due to improper payments by requiring the agency to identify and report on its programs and activities that are…

We audited the West New York Housing Authority’s American Recovery and Reinvestment Act Capital Fund program in support of the Office of Inspector General’s audit plan goal to oversee Recovery Act-funded activities. We selected the Authority based upon a risk analysis of authorities receiving Recovery Act capital funds administered through the U.S. Department of Housing and Urban Development’s (HUD) Newark, NJ, field office, which considered…

We audited the City of Paterson, NJ’s Housing Opportunities for Persons With AIDS (HOPWA) program in support of the Office of Inspector General’s (OIG) goal to contribute to improving HUD’s execution of its fiscal responsibilities. We selected the City after a risk analysis of HOPWA grantees administered by the HUD Newark, NJ, field office that considered funding, the U.S. Department of Housing and Urban Development’s (HUD) 2011 risk…

We conducted an evaluation of the U.S. Department of Housing and Urban Development’s (HUD) toll free phone lines.  Our objective was to determine whether HUD’s phone lines were functioning at optimal levels with regard to phone line operations and the level of customer service provided to the public. Our review disclosed that HUD could not determine (1) whether its toll free phone lines were functioning at an optimal level and (2) the…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) Home Investment Partnerships Program as part of an Office of Inspector General (OIG) plan to improve HUD’s execution and accountability of fiscal responsibility. Our objective was to determine whether HUD’s proposed regulation changes and controls would mitigate the systemic deficiencies identified in prior OIG audit reports. We found that if properly implemented, HUD’s…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of Private Enforcement Initiative grants awarded under its Fair Housing Initiatives program as part of our annual audit plan. Our objective was to determine whether HUD performed monitoring to ensure that enforcement grant funds were spent in compliance with grant terms and program requirements. HUD monitoring generally covered procedures required to ensure that…

We audited Morris County, NJ’s Community Development Block Grant (CDBG) program based on a risk assessment, which considered the size of the program, the U.S. Department of Housing and Urban Development’s (HUD) risk analysis, and prior audit coverage. The objectives of the audit were to determine whether County officials established adequate controls to ensure that CDBG funds were expended for eligible activities and that the program was…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of the Assisted Living Conversion Program. We initiated the audit as part of the activities in our fiscal year 2012 annual audit plan, which included contributing to the improvement of HUD’s execution of and accountability for fiscal responsibilities. Our audit objective was to determine whether HUD had adequate oversight of its Assisted Living Conversion…

We audited the Hoboken, NJ, Housing Authority’s administration of its Recovery Act Capital Fund program in support of HUD OIG’s audit plan goals to oversee Recovery Act-funded activity and improve HUD’s execution of and accountability for its fiscal responsibilities. We selected the Authority based on a risk assessment, which considered the Authority’s funding, the U.S. Department of Housing and Urban Development’s (HUD) risk analysis, and…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage Program based on our annual audit plan and our strategic goal to improve the integrity of HUD’s single-family insurance programs. This is the second of two reports that we issued on HUD’s oversight of the Program. Our objective was to determine whether HUD controls prevented borrowers from renting their properties to…

We audited the U.S. Department of Housing and Urban Development’s (HUD) plans and procedures for data conversion and system interfaces for the implementation of the HUD Integrated Core Financial System (ICFS). We conducted this audit as a component of the testing of general and technical controls for information systems in connection with the annual audit of HUD’s consolidated financial statements. HUD’s effort to modernize its financial…

We audited HUD's Region 3 Offices of Multifamily Housing to determine whether HUD ensured that rents and excess income for Section 236 properties were properly identified and remitted to HUD. We performed this audit based on our audit plan and problems identified during an external audit of a Section 236 property located in Washington, DC. HUD's Region 3 Offices of Multifamily Housing generally ensured that Section 236 properties established…

We audited the U.S. Department of Housing and Urban Development’s (HUD)’s plans and procedures for data conversion of the HUD Integrated Core Financial System (ICFS). Our audit objective was to review HUD’s readiness to fully implement ICFS and determine whether HUD had properly managed the payments related to data conversion activities. We determined that OCFO incorrectly paid the Integrated Financial Management Improvement Project…

In this report, we provide additional details to supplement our Report on the U.S. Department of Housing and Urban Development's (HUD) Fiscal Years 2012 and 2011 Financial Statements, which is included in HUD's Fiscal Year 2012 Agency Financial Report. In OIG's opinion, based on our audit and the reports of other auditors, the financial statements were presented fairly, in all material respects, in conformity with accounting principles…

In accordance with the Government Corporation Control Act as amended (31 U.S.C. 9105), the Office of Inspector General engaged the independent certified public accounting firms of CliftonLarsonAllen LLP (CLA) to audit the fiscal year 2012 and Clifton Gunderson LLP[1] to audit the fiscal year 2011 financial statements of the Federal Housing Administration (FHA). The contracts required that the audit be performed according to Generally Accepted…

In accordance with the Government Corporation Control Act as amended (31 U.S.C. 9105), the Office of Inspector General engaged the independent certified public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the fiscal years 2012 and 2011 financial statements of the Government National Mortgage Association (Ginnie Mae). The contract required that the audit be performed according to Generally Accepted Government Auditing Standards (U.S…

We have completed a review to determine whether HUD followed proper policies and procedures in responding to a breach of personally identifiable information which occurred on September 21, 2012. Specifically, for this incident, we identified what actions were taken and any deficiencies within HUD policies, plans, or current practices. We determined that HUD responded to the incident properly, following United States Computer Emergency…

We reviewed HUD’s monitoring of the Homelessness Prevention and Rapid Re-Housing Program (HPRP) in support of HUD OIG’s audit plan goals to oversee Recovery Act-funded activity and improve HUD’s execution of and accountability for fiscal responsibilities. The objective of the audit was to determine whether HUD had established adequate controls to (1) ensure that grantees complied with Recovery Act expenditure and performance reporting…