We conducted further analysis of our reported findings in fiscal years 2013 and 2014 that the U.S. Department of Housing and Urban Development’s (HUD) formula grant accounting did not comply with generally accepted accounting principles (GAAP), resulting in misstatements on the financial statements, and that HUD did not comply with the HOME Investment Partnership Act (also known as the HOME Statute).  The additional analysis was performed…

We audited the U.S. Department of Housing and Urban Development’s (HUD) New Core Project as part of the internal control assessments required for the fiscal year 2015 financial statement audit under the Chief Financial Officer’s Act of 1990.  Our objective was to assess the status of the project and to determine whether the New Core Project team complied with Federal regulations and departmental project management processes.  This…

We audited the Housing Authority of the County of San Bernardino’s Shelter Plus Care program due to a public complaint alleging that the Authority disregarded U.S. Department of Housing and Urban Development (HUD) program requirements related to participants’ eligibility.  Our objective was to determine whether the Authority administered its program funds in accordance with HUD rules and requirements, specifically related to participants’…

We audited the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2014 compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA) in accordance with the requirements of IPERA.  Our audit objectives were to (1) determine HUD’s compliance with IPERA reporting and improper payments reduction requirements; (2) determine whether HUD’s reporting of improper payments data, including the agency’s…

The Office of Evaluation performed preliminary research of the HUD Office of the Chief Information Officer’s (OCIO) management of the agency’s reporting of financial and project information on the Federal IT Dashboard (Dashboard).  The objective of the evaluation was to determine if OCIO processes ensured accurate IT investment information was reported on the Dashboard.  We found that project managers did not consistently follow…

We audited Sutton Irvine Residence, Inc.’s Section 202-funded project based on concerns expressed by the U.S. Department of Housing and Urban Development’s (HUD) Office of General Counsel, Departmental Enforcement Center, regarding the management of the project.  The concern was that Sutton Irvine had defaulted on its mortgage payments to HUD and may have diverted project funds for nonproject expenses.  Our audit objective was to…

We audited HUD Federal Housing Administration’s (FHA) Home Affordable Modification Program (HAMP) partial claim option.  We audited the FHA-HAMP partial claim option because we had not reviewed the program since 2011 and the requirements had changed.  Our audit objective was to determine whether HUD had adequate controls over FHA-HAMP partial claim payments. HUD’s claim payment controls for the FHA-HAMP partial claim option were not…

We audited Veterans First’s Supportive Housing Program (SHP) based on a referral from the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s Office of Investigation and a hotline complaint, alleging that Veterans First employees were directed to prepare false accounting documents.  Our objective was to determine whether expenditures Veterans First charged to its SHP grants and program fees it charged to…

The U. S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted a limited review of the Oakland Housing Authority’s Moving to Work Housing Choice Voucher program’s use of exception payment standards exceeding the Authority’s 110 percent limit on fair market rents.  The review was initiated as a result of a congressional request alleging fraud, waste, and abuse by public housing agencies…

We reviewed the U.S. Department of Housing and Urban Development (HUD), Office of Community Planning and Development’s (CPD) Neighborhood Stabilization Program (NSP).  We initiated the audit under the HUD Office of Inspector General’s (OIG) annual audit plan.  Our objective was to provide an overall assessment of NSP, including assessing the sufficiency of HUD’s controls and determining whether HUD had improved its controls as a…

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…

We reviewed information system controls over the U.S. Department of Housing and Urban Development’s (HUD) computing environment.  This review was conducted as part of the Office of Inspector General’s audit of HUD’s financial statements for fiscal year 2014 under the Chief Financial Officer’s Act of 1990. The OIG has determined that the contents of this report would not be appropriate for public disclosure and has therefore limited its…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD’s monitoring of the community service and self-sufficiency requirement (CSSR)  to determine the extent to which HUD subsidized public housing units occupied by noncompliant tenants and housing for tenants whose CSSR status was misreported. We found that HUD subsidized housing for 106,000 units occupied by noncompliant tenants, out of nearly…

We audited New Image Emergency Shelter’s Housing Opportunities for Persons With AIDS (HOPWA) program based on a referral from the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) Office of Investigation and a citizen complaint, alleging that New Image lacked adequate documentation to support program expenditures and employee salaries. Our objective was to determine whether New Image administered and…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of public housing agencies’ lobbying activities based on information we obtained while resolving recommendations from an audit of the Philadelphia Housing Authority which showed that the Authority engaged in lobbying activities that it failed to disclose.  Our audit objective was to determine whether HUD oversight was adequate to ensure that public housing…

Based on a hotline complaint and additional work by our Financial Audit Division and Office of Legal Counsel, we reviewed whether a conflict of interest existed within the U.S. Department of Housing and Urban Development (HUD) Office of Public and Indian Housing (PIH). Specifically, former PIH Assistant Secretary Sandra B. Henriquez appointed Debra Gross, a former lobbyist and the deputy director of the Council of Large Public Housing…

Preliminary Research Closeout Memorandum In 2011, HUD established a high priority goal to reduce vacancies through improved management of the public housing inventory. Since then, HUD has substantially reduced vacancies, saving taxpayer dollars and enhancing the availability of habitable rental units. Subsidized vacancies, measured in unit months, have decreased from approximately 550,000 in 2011 to approximately 379,000 currently. The…

The Inspector General Act of 1978 requires the Inspector General to prepare semiannual reports summarizing the activities of the Office of Inspector General for the preceding six-month periods. The semiannual reports are intended to keep the Secretary and the Congress fully informed of significant findings, progress the Agency has made and recommendations for improvement.

We are required to audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD) annually in accordance with the Chief Financial Officers Act of 1990 as amended.  Our objectives were to evaluate HUD’s internal controls over financial reporting and compliance with applicable laws, regulations, and government wide policy requirements and provisions of contracts and grant agreements.  This…

We reviewed the general and application controls over the U.S. Department of Housing and Urban Development’s (HUD) Loan Accounting System (LAS) 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 objective was to review the effectiveness of general and application controls over LAS for compliance with HUD information technology…