The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Grace Hill Neighborhood Health Centers (Grace Hill). Our audit objective was to determine whether Grace Hill properly charged payroll and support expenses to the grants. We concluded that Grace Hill charged unsupported salary and benefit costs to the grants because it did not require grant staff to properly track their time. Additionally, Grace Hill…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Midwest Mortgage Capital (Midwest). Our audit objectives were to determine whether Midwest followed HUD requirements for underwriting loans and performing its quality control program for single-family production. We concluded that Midwest did not properly underwrite 7 of the 29 defaulted loans reviewed. These loans had material underwriting…

We completed an audit of the Union County Consortium's (County) administration of its Community Development Block Grant (CDBG) program to determine whether the County (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and in compliance with HUD rules and regulations, (2) maintained a financial management system to adequately safeguard funds, and (3) established adequate controls to ensure that…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the St. Louis Housing Authority in St. Louis, Missouri. Our objective was to determine whether the Authority took complete physical inventories and maintained adequate property records. We concluded that the Authority did not perform complete physical inventories in fiscal years 2006, 2007, or 2008 or reconcile the results of the inventories…

We audited the City of Camden's (City) asset control area (ACA) program following a request from the U.S. Department of Housing and Urban Development's (HUD) Office of Single Family Asset Management for a review of the City's compliance with its ACA agreement with HUD. Our objective was to determine whether the City complied with specific requirements in the ACA agreement pertaining to the resale of properties it acquired from HUD…

We completed an audit the Community Development Block Grant (CDBG) program administrated by the Township of South Orange Village (Township), a subgrantee of the Essex County Consortium (County). Our audit objectives were to determine whether the Township disbursed CDBG funds efficiently and effectively in accordance with its submission to the U.S. Department of Housing and Urban Development (HUD) and with applicable rules and regulations, had a…

We completed an audit of the Community Development Block Grant (CDBG) program administered by the Economic Development Corporation (Corporation), a subgrantee of Essex County Consortium (the County). Our audit objectives were to determine whether the Corporation adequately administered its CDBG program in accordance with applicable rules and regulations. Specifically, whether it efficiently and effectively disbursed CDBG funds, had a financial…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited CitiMortgage, Incorporated (CitiMortgage). Our audit objectives were to determine whether CitiMortgage followed U.S. Department of Housing and Urban Development (HUD) requirements for underwriting loans and performing its quality control program for single-family production. We concluded that CitiMortgage did not properly underwrite 20 of the 60…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General reviewed the City of St. Louis' use of HOME Investment Partnerships Program (HOME) funds. Our audit objective was to determine whether the City used HOME funds for reasonable and necessary development costs. We concluded that The City used HOME funds for costs that were not reasonable and necessary to produce housing for low-income families. Additionally…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Heartland Funding Corporation (Heartland Funding) because of its high 30-day delinquency rate. More than 23 percent of the loans that it originated from January 2006 through December 2007 had been at least 30 days delinquent (past due). Our audit objectives were to determine whether Heartland Funding followed HUD requirements for (1) borrower…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, reviewed James B. Nutter and Company's (J.B. Nutter) quality control program. Our objective was to determine whether J.B. Nutter followed HUD's quality control requirements for home equity conversion mortgages insured by the Federal Housing Administration (FHA). We concluded that for six months in 2007 and 2008, J.B. Nutter did not meet HUD's…

We completed an audit of Union County's (County) Housing Choice Voucher program, which is administered by its Division of Planning and Community Development. Our audit objectives were to determine whether the County's (1) Housing Choice Voucher program units met housing quality standards; (2) costs charged to the Housing Choice Voucher program were supported and eligible; and (3) controls over the Housing Choice Voucher program,…

We completed an audit of the County of Essex's (County) Community Development Block Grant (CDBG) program, which was administered by its Division of Housing and Community Development. Our audit objectives were to determine whether the County disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and applicable rules and regulations and had a financial management system in place to adequately safeguard the…

We completed an audit of Mortgage Access Corporation, doing business as Weichert Financial Services, a nonsupervised lender located in Morris Plains, New Jersey. The audit objectives were to determine whether Mortgage Access Corporation (1) approved insured loans in accordance with U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) requirements, and (2) developed and implemented a quality control plan…

We completed an audit of the Housing Authority of the City of Asbury Park, Asbury Park, New Jersey. The objectives of the audit were to determine whether (1) capital funds were properly expended and obligated in accordance with HUD requirements, (2) salaries and related benefits allocated to different programs were reasonable and supported, and (3) controls over maintenance and repairs were adequate. The Authority did not adequately administer…

KANSAS CITY, Mo. – A Kansas City, Mo., man who defrauded a local financial institution of $652,784.34 in funds was sentenced in federal court today for bank fraud and money laundering.Maximillian D. Howell, 44, was sentenced by U.S. District Judge Brian C. Wimes to a total of 21 months in federal prison without parole.  The court also ordered Howell to pay restitution of $231,841.84 to the financial institution.  In addition, the court…

NEWARK, N.J. – A Newark-based expediter today admitted to conspiring to give bribes to Newark public officials, including then-Newark Councilmember Joseph A. McCallum, Jr., in connection with real estate development and construction-related transactions and conspiring with others to create and sell falsified documents supposedly issued by the City of Newark in connection with development, construction, rental or sale of such properties in Newark…