This briefing paper highlights challenges the Government National Mortgage Association (Ginnie Mae) faces in monitoring nonbanks and outlines our past, current, and future efforts to help it address those challenges. We are highlighting these challenges so HUD leadership is aware of and can be better prepared to address them.  OIG is focusing on Ginnie Mae’s capacity to monitor nonbanks with an ongoing audit.

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). HUD reissued its fiscal year 2016 and 2015 (Restated) consolidated financial statements due to pervasive material errors that were identified by us. Our objective was to express an opinion on the fairness of HUD’s consolidated…

This page previously contained our independent auditor’s report on HUD’s fiscal year 2016 and 2015 (Restated) consolidated financial statements  (OIG Audit Report 2017-FO-0004), issued November 15, 2016.  In the report, one basis for our disclaimer of opinion was that HUD was unable to provide final consolidated financial statements and accompanying notes in a timeframe that would allow us to obtain sufficient, appropriate evidence to…

This report presents the results of our audit of Ginnie Mae’s fiscal years 2016 and 2015 (restated) 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.  For the third consecutive year, in fiscal year 2016, we were unable to obtain sufficient, appropriate evidence to express an opinion on the fairness of the $ 4.2…

The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited the Government National Mortgage Association’s (Ginnie Mae) process for identifying and removing uninsured single-family Federal Housing Administration loans from mortgage-backed securities (MBS) pools.  Our audit objective was to determine whether loans remained in Ginnie Mae MBS pools for 1 year or longer without the required mortgage insurance.…

This report presents the results of our audit of Ginnie Mae’s fiscal years 2015 and 2014 (restated) 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.  For the second consecutive year, in fiscal year 2015, we were unable to obtain sufficient appropriate evidence to express an opinion on the fairness of the $ 5.4…

This report presents the results of our fiscal year 2014 audit of Ginnie Mae’s 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.  We contracted with the independent certified public accounting firm of CliftonLarsonAllen LLP to audit Ginnie Mae’s fiscal year 2013 financial statements.  CliftonLarsonAllen was…

We audited the City of High Point’s lead-based paint procurement and eligibility operations.  We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) Office of Healthy Homes and Lead Hazard Control.  Our audit objective was to determine whether the City administered its lead-based paint hazard control grants in accordance with HUD’s regulations and grant requirements for…

We reviewed the information security controls over the U.S. Department of Housing and Urban Development’s (HUD) Ginnie Mae Financial Accounting System (GFAS) as part of the internal control assessments required for the fiscal year 2014 financial statement audit under the Chief Financial Officer’s Act of 1990.  Our audit objective was to determine the effectiveness of general and application controls over GFAS for compliance with HUD…

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 2013 and 2012 financial statements of the Federal Housing Administration (FHA). The contract required that the audit be performed according to Generally Accepted Government Auditing Standards (GAGAS). CLA is…

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 2013 and 2012 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 (…

In response to a hotline complaint, we conducted an evaluation of the Government National Mortgage Association’s (Ginnie Mae) managed data center sole-source requisition. Specifically, the hotline complaint alleged that Ginnie Mae (1) intended to circumvent the normal competitive process and did not publicize the full details of the scope of the contract, (2) intended to issue a sole-source contract and then enlarge the scope post-award without…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of Spokane, WA’s Lead-Based Paint Hazard Control program funded by the American Recovery and Reinvestment Act to determine whether the City complied with procurement, matching, and reporting requirements when executing its grant. This audit was part of the mandate to monitor grant activities funded by the Recovery Act. We selected the City…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General conducted a limited scope internal review of Office of Healthy Homes and Lead Hazard Control (Healthy Homes) to determine whether Healthy Homes allowed excessive administrative costs to be charged to the Lead-Based Paint Hazard Control grant program. This review was the result of the audit of the Washington State Lead Hazard Control grant (2012-SE-1005,…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Washington State Department of Commerce to determine whether it complied with Lead Hazard Control grant project eligibility, matching contribution, administrative cost, and American Recovery and Reinvestment Act reporting requirements. This audit is part of the national mandate to monitor grant activities funded by the Recovery Act. We selected…

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the State of Wisconsin’s Department of Commerce’s Lead-Based Paint Hazard Control program under the American Recovery and Reinvestment Act of 2009. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the State for review based on a citizen’s complaint forwarded to our office from the U.S. Department of Commerce’s…

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 Clifton Gunderson LLP (CG) to audit the fiscal years 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 (GAGAS). Ginnie…

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Office of Healthy Homes and Lead Hazard Control’s monitoring of its American Recovery and Reinvestment Act of 2009 grant recipients. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected Healthy Homes for audit based upon an internal audit suggestion regarding Healthy Homes’ monitoring of its grant recipients…

This report presents the results of Carmichael, Brasher, Tuvell and Company's (CBTC) audit of the Government National Mortgage Association's (Ginnie Mae) financial statements for the fiscal years ended September 30, 2010 and 2009. In CBTC's opinion, the financial statements present fairly, in all material respects, Ginnie Mae's financial position as of September 30, 2010 and September 30, 2009 and the results of its…

We performed an audit of HUD's Office of Healthy Homes and Lead Hazard Control (OHHLHC) grant program for Lead Hazard Reduction Demonstration (LHRD). Our audit was initiated based on a complaint to the hotline alleging that the managers of OHHLHC changed the scores assigned by the application review panel to award grants to applicants that were not ranked high enough to receive funding under the 2009 NOFA. Our objective was to determine…