We performed an audit examining HUD’s efforts to prevent duplication of benefits when using Community Development Block Grant (CDBG) Disaster Recovery and Mitigation funds.  Our objective was to determine how the U.S. Department of Housing and Urban Development (HUD) assesses the adequacy of grantee procedures to prevent a duplication of benefits, both before and after grant execution. HUD certified grantees’ high-level processes for…

We identified gaps in Ginnie Mae’s guidance and process for troubled issuers.  Ginnie Mae made progress in developing an issuer default governance framework, but has not (1) defined its authorities for marketing troubled portfolios; (2) formalized guidance for how to identify potential buyers before extinguishment; (3) established expectations for determining portfolio value, price before sale, and evaluation against other options or (4)…

Ginnie Mae generally followed Federal guidance in precrisis planning and executed its crisis management strategy with respect to the COVID-19 pandemic.  However, it does not have an agencywide crisis readiness plan, addressing likely hazards arising from a crisis, or include all key elements in line with crisis guidance from CIGFO.

We performed a corrective action verification review of the actions taken by the Government National Mortgage Association (Ginnie Mae) to implement the recommendations cited in Audit Report 2016-KC-0002, issued September 21, 2016. The HUD Handbook places the responsibility on HUD’s Office of Inspector General to perform selected corrective action verifications of significant audit recommendations when final actions have been completed.  Our…

We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of Ginnie Mae as of and for the fiscal years ended September 30, 2022 and 2021, 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 CLA required that the audit be performed in…

While conducting an ongoing audit of the Philadelphia Housing Authority’s (Authority) management of lead-based paint hazards in its public housing units, we identified a significant gap in HUD’s program requirements related to safe work practices, which we believe requires immediate action by HUD.  We identified that the Authority determined a substantial percentage of maintenance and hazard reduction work performed on surfaces with lead-…

We audited the U.S. Department of Housing and Urban Development’s (HUD) efforts to meet the Geospatial Data Act of 2018 (the Act). Our audit objective was to determine whether HUD met the 13 responsibilities stated in the Act with regard to its collection, production, acquisition, maintenance, distribution, use, and preservation of geospatial data.  The Act also generally requires covered agencies provide access to geospatial data and…

In February 2021, the Office of the Chief Information Officer (OCIO) identified funding risks with the development contract under which HUD contracted for Federal Housing Administration (FHA) Catalyst’s development.  In response, HUD officials took steps to slow FHA Catalyst spending on the contract while awaiting approval for additional contract funds.  Despite efforts to slow project spending, it was not enough to prevent funding…

The Chief Financial Officers Act of 1990 (Public Law 101-576), as amended, requires the Office of Inspector General to audit the financial statements of the Government National Mortgage Association (Ginnie Mae) annually. Attached are the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) results of the audit of Ginnie Mae fiscal years 2021 and 2020 financial statements and reports on internal control over…

HUD does not have a departmentwide policy for dealing with radon contamination.  Instead, HUD relies on each program office to develop radon policies that align with HUD’s environmental regulations.  The three program offices reviewed do not have consistent radon policies.  Only Multifamily’s radon policy includes radon testing and mitigation requirements.  PIH’s policy strongly encourages but does not require public housing…

This report presents the results of our audit of Ginnie Mae’s fiscal year 2020 financial statements, including our report on Ginnie Mae’s internal control and test of compliance with selected provisions of laws, regulations, and contracts applicable to Ginnie Mae. In fiscal year 2020, we were able to obtain sufficient, appropriate evidence to express an unmodified opinion on the fairness of Ginnie Mae’s financial statements. We also…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Policy Development and Research’s implementation of the responsibilities stated in the Geospatial Data Act of 2018 (The Act).  We performed this review in response to a congressional mandate that HUD’s geospatial data be audited at least once every 2 years.  The Act requires that we audit HUD’s collection, production, acquisition, maintenance,…

We audited the effectiveness of selected business process application-level general controls and data management controls over the Government National Mortgage Association (Ginnie Mae) Financial Accounting System (GFAS) and its subledger database (SLDB) component as part of the internal control assessments required for the fiscal year 2019 financial statements audit under the Chief Financial Officer’s Act of 1990. We also assessed selected…

This report presents the results of our audit of Ginnie Mae’s fiscal year 2019 financial statements, including our report on Ginnie Mae’s internal control and test of compliance with selected provisions of laws, regulations, and contracts applicable to Ginnie Mae. In fiscal year 2019, we were unable to obtain sufficient, appropriate evidence to express an opinion on the fairness of Ginnie Mae’s financial statements.  Specifically, our work…

We audited the general controls over the Integrated Pool Management System (IPMS) as part of the internal control assessments required for the fiscal year 2018 financial statements audit under the Chief Financial Officer’s Act of 1990.  Our objective was to evaluate and assess internal controls over the safeguarding of data, security, and continued operations in the event of unexpected interruptions.  Specifically, we examined the…

This report presents the results of our audit of Ginnie Mae’s fiscal years 2018 and 2017 financial statements, including our report on Ginnie Mae’s internal control and test of compliance with selected provisions of laws and regulations applicable to Ginnie Mae. In fiscal year 2018, for the fifth consecutive year, we were unable to obtain sufficient, appropriate evidence to express an opinion on the fairness of the $3 billion (net of allowance)…

We completed a risk assessment of the U.S. Department of Housing and Urban Development’s (HUD) grant closeout process as required by the Grants Oversight and New Efficiency (GONE) Act of 2016, Public Law 114-117.  Our objective was to determine whether an audit or review of HUD’s grant closeout process was warranted.  We found that a moderate risk was associated with HUD’s grant closeout process and recommend that a full audit be…

In violation of the housing assistance payment contract’s conflict-of-interest requirements, the former executive director of the Housing Authority of the City of Beeville, TX, executed housing assistance payment contracts on behalf of the Authority with her brother and sister.  The former executive director did not fully disclose the conflicts-of-interest and had not sought a waiver from HUD’s Office of Public and Indian Housing until the…

On April 17, 2018, the Office of Program Enforcement issued a letter stating that it had reached a resolution under a Program Fraud Civil Remedies Act of 1986[1] case regarding Summit Bradford Apartments located in Tulsa, OK, following its review.  The Government alleged that the owner submitted 40 false claims under the Act.  The Office of Program Enforcement included with its letter the March 28, 2018, settlement agreement with BSR…

We audited general and application controls over the Ginnie Mae Financial Accounting System (GFAS) as part of the internal control assessments required for the fiscal year 2017 financial statements audit under the Chief Financial Officer’s Act of 1990.  Our objective was to review internal controls over the security, integrity, confidentiality, and availability of the data maintained in GFAS. We also reviewed the functionality and…