The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) conducted an evaluation of the operational effectiveness of information technology (IT) security controls for the HUDUSER system, which is operated by HUD’s Office of Policy Development and Research (PD&R).  The OIG identified four significant weaknesses involving website security, underscoring the need to strengthen technical security controls…

As part of our mission to safeguard the U.S. Department of Housing and Urban Development’s (HUD) programs from fraud, waste, and abuse, and to identify opportunities for HUD programs to progress and succeed, we selected Colorado for a review of potential improper payments.  Our audit objective was to determine whether Colorado made improper non-Federal match activity payments.  We also assessed whether the Office of Community Planning…

We found that the photovoltaic systems (PV) and water tanks installed in participant’s homes had deficiencies.  Such deficiencies included inverters and batteries with signs of rust; water intrusion that could lead to electrical shorts; electrical conduits that were degrading due to direct exposure to the sun; electrical conduits with water; and water tanks that were leaking, overflowing, or both.  Based on statistical projections, at…

Fraud poses a significant risk to the integrity of federal programs and erodes public trust in government.  For the U.S. Department of Housing and Urban Development’s (HUD) disaster recovery programs, fraud results in communities and individuals not receiving needed assistance to recover from and mitigate future disasters.  Departments are required by law to develop and maintain governance structures, controls, and processes to…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Single Family Housing’s efforts to increase the supply of affordable housing.  Our audit objective was to determine whether HUD met its intended outcome to increase the supply of affordable housing to owner-occupants, governmental entities, and HUD-approved non-profits by expanding the exclusive listing periods for its Real Estate Owned (REO) properties and…

We contracted with the independent public accounting firm of Sikich CPA LLC to audit the financial statements of FHA as of and for the fiscal year ending September 30, 2025, and to provide reports on FHA’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters.  Our contract with Sikich required that the audit be performed in accordance with U.S. generally…

Beginning in 2021, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) conducted several audits to assess HUD’s anti-fraud efforts and to develop inventories of fraud risks for several of its programs.  Our previous work found that HUD’s fraud risk management program was in its early stages of development and we recommended that HUD perform program-specific fraud risk assessments and incorporate…

This disaster recovery biannual report and subsequent annual reports will provide curated information regarding the U.S. Department of Housing and Urban Development (HUD) and its grantees’ use of the more than $109 billion in disaster recovery funds approved by Congress since the 2001 World Trade Center attack, as well as information on new or completed HUD OIG oversight work related to HUD’s disaster recovery program.  HUD’s grantees use…

We contracted with the independent public accounting firm of Sikich CPA LLC to audit the financial statements of HUD as of and for the fiscal year ending September 30, 2025, and to provide reports on HUD’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters, including whether financial management systems complied substantially with the requirements of the…

Beginning in 2021, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted several audits to assess HUD’s anti-fraud efforts and to develop inventories of fraud risks in HUD programs. Our previous work found that HUD’s fraud risk management program was in its early stages of development, and we recommended that HUD perform program-specific fraud risk assessments and incorporate these assessments…

The Federal Information Security Modernization Act of 2014 (FISMA) directs Inspectors General to conduct an annual evaluation of the agency information security program. FISMA, Department of Homeland Security (DHS), Office of Management and Budget (OMB) and National Institute of Standards and Technology (NIST) establish information technology (IT) security guidance and standards for Federal agencies. We conducted this evaluation to assess the…

We contracted with the independent public accounting firm Sikich CPA LLC to audit the financial statements of Ginnie Mae as of and for the years ending September 30, 2025 and 2024, and to provide reports on Ginnie Mae’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters. Our contract with Sikich required that the audit be performed in accordance with U.S.…

We audited New York State’s Hurricane Sandy disaster procurement processes.  Our audit objective was to determine whether the State conducted its Hurricane Sandy-funded disaster recovery procurements using full, fair, and open competition methods.  By continuing to use a November 2012 Governor-issued temporary waiver, the State did not foster open competition and ensure that it obtained the best services at the best prices.  Our…

HUD did not comply with PIIA because it did not report compliant improper and unknown payment estimates for the Office of Public and Indian Housing’s Tenant-Based Rental Assistance (PIH-TBRA) program and the Office of Multifamily Housing Programs’ Project-Based Rental Assistance (MF-PBRA) program.   These were HUD’s two largest program expenditures, totaling more than $50 billion in fiscal year 2024.  This noncompliance is…

This inaugural disaster recovery biannual report and subsequent reports will provide curated information regarding the U.S. Department of Housing and Urban Development (HUD) and its grantees’ use of the more than $109 billion in disaster recovery funds approved by Congress since the 2001 World Trade Center attack, as well as information on new or completed HUD OIG oversight work related to HUD’s disaster recovery program.HUD’s grantees use…

To determine whether all the unexpended obligations of HUD are valid and meet funding guidelines, the Office of the Chief Financial Officer (OCFO) coordinates annually an Open Obligation Review (OOR) of all program and administrative funds. This review determines which funds are still needed and certifies to Treasury that the funds remaining in its obligation balance at the end of the fiscal year represent future obligations for the department…

The Office of National Drug Control Policy (ONDCP) leads and coordinates the Nation’s drug policy to improve the health and lives of the American people, including the development and implementation of the National Drug Control Strategy (the Strategy).  ONDCP evaluates the effectiveness of national drug control policy efforts, the Strategy’s goals and objectives, and each National Drug Control Program Agency’s program-level measures.…

The U.S. Department of Housing and Urban Development (HUD) administers billions in presidentially declared disaster recovery grants through its Community Development Block Grant Disaster Recovery program.  We audited five non-State grantees to assess whether they are on track to spend their remaining grant funds on eligible activities that benefit program participants within a reasonable amount of time.  We also wanted to determine…

In an effort to increase transparency and accountability in the use of Federal funding in program activities, Federal law and guidance requires the U.S. Department of Housing and Urban Development (HUD) and its prime recipients to ensure that complete and accurate subaward data is posted on USASpending.gov.  We audited HUD to determine whether the prime award recipients of HUD funding met all of the Federal Funding Accountability and…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) is auditing the use of Community Development Block Grant Disaster Recovery (CDBG-DR) funds as non-Federal match for the Federal Emergency Management Agency’s (FEMA)Public Assistance Program.  Our objectives are to determine whether four CDBG-DR grantees made improper payments and whether the Office of Community Planning and Development’s…