Federal organizations have a fundamental responsibility to protect the privacy of individuals and their personally identifiable information (PII) that is collected, used, maintained, shared, and disposed of by agency programs and information systems. The management of U.S. Department of Housing and Urban Development (HUD) programs demands the availability and use of extensive amounts of financial, demographic, and personal information. HUD is…

We conducted an audit of the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2013 compliance with the Improper Payments Information Act of 2002 as amended by the Improper Payments Elimination and Recovery Act of 2010 (IPERA).  IPERA was enacted to eliminate and recover improper payments by requiring agencies to identify and report on programs that are susceptible to significant improper payments.  IPERA also…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the Office of the United States Attorney, Civil Division, of the Eastern District of North Carolina with a review of loans allegedly improperly originated by Numerica Mortgage, LLC.  Numerica was a Federal Housing Administration (FHA) direct endorsement mortgagee.  The allegations originated with the office of the North Carolina…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the Office of the United States Attorney, Civil Division, of the Eastern District of North Carolina with a review of loans allegedly improperly originated by Numerica Mortgage, LLC.  Numerica was a Federal Housing Administration (FHA) direct endorsement mortgagee.  The allegations originated with the office of the North Carolina…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of Public and Indian Housing program interfund transactions. Our objective was to determine whether HUD (1) had adequate procedures to identify, monitor, and evaluate public housing agencies (PHA) with interfunds, and (2) took appropriate actions to curtail improper practices when borrowing from restricted HUD programs was found. HUD officials adequately…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) violation report regarding the misuse of a government purchase card in accordance with the Office of Management and Budget’s (OMB) implementing guidance and the Government Charge Card Abuse Prevention Act of 2012.   HUD is responsible for the violation report and the conclusions expressed in the report.  Our objective was to evaluate the fairness of the…

We audited certain portions of the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing programs as part of our fiscal year 2013 annual audit plan, based on an auditability study that we conducted, which identified potentially significant risk factors in its McKinney Act bond refund program.  The objectives of the audit were to determine whether HUD properly enforced requirements that regulated the application of…

We reviewed the U.S. Department of Housing and Urban Development, (HUD) Office of Community Planning and Development’s (CPD) monitoring of its Neighborhood Stabilization Program (NSP) grantees’ incurred developer fees based on a prior external audit, which indicated that CPD field offices may not have provided adequate oversight of NSP grantees to ensure that for-profit developers did not incur questionable developer fees.  Our objective…

The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed HUD’s oversight of contracting for architectural and engineering contracts due to a referral involving a multi-State manufactured home inspection contract awarded by HUD in which the contractor received excessive payments.  Our audit objective was to determine whether HUD properly procured and made reasonable payments for its manufactured…

We audited the U.S. Department of Housing and Urban Development’s (HUD) San Francisco and Los Angeles Offices of Community Planning and Development’s (CPD) monitoring of CPD-funded assets transferred by former redevelopment agencies due to concerns that CPD-funded assets may be lost during the State of California’s statewide mandated closure of redevelopment agencies.  Our objective was to determine whether the San Francisco and Los…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of Section 202 multifamily housing project refinances as part of the Inspector General’s goal of promoting fiscal responsibility and financial accountability.  Our objective was to determine whether HUD had adequate controls to ensure that Section 202 refinancing was conducted in an effective and efficient manner. HUD did not have adequate controls to…

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 annually audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD) in accordance with the Chief Financial Officers Act of 1990 as amended. This report supplements our report on the results of our audit of HUD’s principal financial statements for the fiscal years ending September 30, 2013 and 2012 (restated). Also provided are assessments of HUD’s internal controls and our…

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 (…

We initiated a review of the Housing Authority of the City of Lumberton, NC, at the request of the U.S. Department of Housing and Urban Development’s (HUD) Greensboro, NC, Office of Public Housing.  HUD staff described many areas of concern, including cash management, procurement, and inventory controls.  Our objective was to determine whether the Authority operated its public housing program in accordance with HUD and other Federal…

The Federal Information Security Management Act of 2002 (FISMA) directs the Office of Inspector General (OIG) to conduct an annual evaluation of the U.S. Department of Housing and Urban Development (HUD) 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…

We completed a review of HUD’s monitoring and administration of the Housing Choice Voucher Family Self-Sufficiency (HCV FSS) program.  The review was included in OIG’s annual audit plan and contributes to OIGs objective of improving HUD’s execution of and accountability for grant funds.  The objectives of the review were to determine whether HUD officials sufficiently monitored public housing agencies (PHA) to encourage the use of the…

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…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Moving to Work Demonstration program based on the HUD Office of Inspector General’s (OIG) initiative to focus HUD management’s attention on problem areas on which we and others have reported over the years.  Our objective was to determine whether HUD had implemented adequate program controls to effectively monitor participant agencies’ performance and…