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 Morris Park Nursing and Rehabilitation Center based on a risk assessment we performed on nursing homes located in New York and New Jersey.  Morris Park has a Section 232 HUD-insured loan in the amount of $7.4 million.  The objective of the audit was to determine whether Morris Park officials managed funds in compliance with the regulatory agreement and applicable HUD requirements. Morris Park officials generally managed…

This memorandum is the U.S. Department of Housing and Urban Development, Office of Inspector General’s (OIG) response to the Government National Mortgage Association’s (Ginnie Mae) official restatement notification, dated September 16, 2015.  We are issuing this memorandum because we believe Ginnie Mae did not completely and adequately disclose the severity of the misstatements identified to allow report users who rely on Ginnie Mae’s…

Office of Evaluation, IT Evaluation Division (iTED) conducted an evaluation of HUD’s IT Modernization program, which included reviews on the implementation and maturity of HUD’s capital planning and investment control (CIPIC) process and Enterprise Architecture (EA) program. With the corroboration of HUD’s Office of Chief Information Officer (OCIO), the report focuses on three major IT programs and policies within the CPIC and EA programs: IT…

We audited the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration’s (FHA) Home Affordable Modification Program (HAMP) partial claim option because we noted issues in the postclaim review process during a previous partial claim audit.1 Our audit objective was to determine whether HUD had adequate controls over its postclaim reviews and adequate policies in place to ensure that servicers properly understood the…

We audited the New York State Community Development Block Grant Disaster Recovery Assistance (CDBG-DR) funded New York Rising Housing Recovery Program to address the Disaster Relief Appropriations Act requirement that the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, monitor the expenditure of CDBG-DR funds.  State officials allocated more than $1 billion in CDBG-DR funds to the Housing Recovery…

We audited the New York Rising Home Enhanced Buyout Program to address the requirement that the U.S. Department of Housing and Urban Development, Office of Inspector General, monitor the expenditure of Community Development Block Grant Disaster Recovery (CDBG-DR) funds made available by the Disaster Relief Appropriations Act.  Our audit objective was to determine whether New York State officials established adequate controls to ensure that…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program.  Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.  We…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Rental Assistance Demonstration.  We initiated the audit under the HUD Office of Inspector General’s annual audit plan.  Our objective was to determine whether HUD had adequate controls over the Demonstration, to include (1) an appropriate completion of a risk assessment that adequately evaluated the following risks: (a) the need for additional administrative…

We audited the U.S. Department of Housing and Urban Development’s (HUD) New Core Interface Solution (NCIS) for release 1 of phase 1 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 determine whether adequate internal controls were in place for NCIS and to relate the results of the review to the upcoming release 3…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program.  Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.  We…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) oversight of the Chicago Housing Authority’s Moving to Work program based on a congressional request from former Congressman Aaron Schock and media attention regarding the Authority’s exception payment standards.  Our objective was to determine whether HUD provided adequate oversight of the Authority’s Moving to Work exception payment standards. HUD’s Office of Public…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) Greensboro, NC, Office of Community Planning and Development’s approval of the City of High Point’s use of a 15 percent cost estimate margin.  The objective of this review was to determine whether HUD knowingly allowed the City to use the 15 percent margin.  HUD’s Greensboro, NC, Office of Community Planning and Development allowed the City to use the 15 percent…

We reviewed the U.S. Department of Housing and Urban Development (HUD), Office of Multifamily Asset Management and Portfolio Oversight.  We initiated the audit under the HUD Office of Inspector General’s (OIG) annual audit plan.  Our audit objective was to determine whether HUD adequately monitored its management agents to ensure that front line costs and direct costs were not excessive across the portfolios as identified in audits…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program based on our strategic objective to protect the integrity of housing insurance and guarantee programs and because of residency issues identified in prior audits of the HECM program.  Our objective was to determine whether HUD’s Office of Single Family Housing had effective controls to ensure that HECM loan…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD’s Office of Community Planning and Development’s (CPD) administration of the HOME Investment Partnerships Program’s matching requirements to determine whether CPD effectively reviewed participating jurisdictions’ match logs and the support for their match contributions and whether it applied the correct match reductions in fiscal year 2013.…

We completed a review of Hudson County, NJ’s administration of its Community Development Block Grant (CDBG) program based on a risk analysis performed by the Office of Inspector General (OIG).  The objective of the audit was to determine whether County officials had established and implemented controls to ensure that the County administered its CDBG program in accordance with program requirements. Our review determined that Hudson County’s…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Section 203(k) Rehabilitation Loan Mortgage Insurance program as part of the activities in our fiscal year 2014 annual audit plan.  Our audit objective was to determine whether HUD had adequate oversight of its Section 203(k) program. HUD needs to improve its monitoring of lenders for compliance with the Section 203(k) program requirements because…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of enhanced vouchers provided under its Housing Choice Voucher program based on our annual audit plan.  We focused on vouchers administered by three New York agencies because the related subsidies represented 59 percent of the total monthly housing subsidies associated with enhanced vouchers nationwide.  Our objective was to determine whether HUD had…

We audited the U.S. Department of Housing and Urban Development’s (HUD) public housing program.  We conducted the audit as part of our annual audit plan and a congressional request.  Specifically, Congressman David P. Roe requested that we review the number of families residing in government-subsidized housing whose income exceeded current income limits.  Our audit objective was to determine the extent to which HUD-subsidized…