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.   Open Recommendations Office of Audit  …

On July 24, 2018, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), issued a report on HUD’s oversight of the Alexander County Housing Authority (ACHA) in Cairo, IL.  The report concluded that HUD could and should have done more to oversee the decade-long deteriorating conditions at ACHA.  Due to the time between the events under review and our fieldwork, some HUD officials could not…

We audited the Civic Towers, LLLP, and Civic Towers Senior, LLLP, Section 8 project-based housing assistance payment (HAP) program.  We selected the Civic Towers and Civic Towers Senior Section 8 project-based properties for review based on a referral from our Office of Investigation regarding a potential duplication of benefits between the U.S. Department of Housing and Urban Development (HUD) and the Federal Emergency Management Agency (…

We audited the Housing Authority of the County of Alameda’s Rental Assistance Demonstration (RAD) conversion to the Section 8 Project-Based Voucher Program.  We selected the Authority because reviews of RAD conversions were aligned with the goals of our annual audit plan.  The objective of our review was to determine whether the Authority administered its RAD conversion in accordance with HUD requirements.  Specifically, we wanted…

We audited American Family Housing’s special needs assistance program funds due to a hotline complaint alleging that the nonprofit used program funds for hotels, spas, raises, and bonuses not related to the program.  Our objective was to determine whether the nonprofit administered its program funds in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We determined that the hotline complaint allegations…

Each year, in compliance with Public law 106-531, the Reports Consolidation Act of 2000, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), issues a report summarizing what we consider to be the most serious management challenges facing the Department. This report represents HUD OIG’s perspective on the top management challenges facing HUD in fiscal year 2019.

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. This report supplements our independent auditor’s report on the results of our audit of HUD’s principal financial statements for the fiscal years ending September 30, 2018 and 2017 (restated), related to HUD’s internal controls and…

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 the Federal Housing Administration and the Government National Mortgage Administration (Ginnie Mae). Our objective was to express an opinion on the fairness of HUD’s consolidated…

The Chief Financial Officers Act of 1990 (Public Law 101-576), as amended, requires the Office of Inspector General to audit the financial statements of the Federal Housing Administration (FHA) annually. We audited the accompanying financial statements and notes of FHA as of and for the fiscal years ending September 30, 2018 and 2017 (restated), which are comprised of the balance sheets, related statements of net cost and changes in net…

This report presents the results of our audit of Ginnie Mae’s fiscal years 2018 and 2017 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. In fiscal year 2018, for the fifth consecutive year, we were unable to obtain sufficient, appropriate evidence to express an opinion on the fairness of the $3 billion (net of allowance)…

We audited the U.S. Department of Housing and Urban Development’s (HUD) use of funds for building improvements, managed by its Office of Administration, in response to a request from the U.S. House and Senate Committees on Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies.  HUD planned to use repurposed and transferred funds from fiscal years 2015 and 2016, totaling $18.3 million, for Office…

The Federal Information Security Modernization Act of 2014 (FISMA) directs Inspectors General to conduct an annual evaluation of the agency 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 standards for Federal agencies. We conducted this evaluation to assess…

The purpose of this report is to consolidate and provide insight into cross-cutting management and performance challenges facing financial sector regulatory organizations as identified by members of the Council of Inspectors General on Financial Oversight (CIGFO). The Inspectors General within CIGFO report annually on the Top Management and Performance Challenges (TMPC) affecting their respective organizations.  This report…

We audited the City of Chicago’s Department of Public Health’s (Department) Lead Hazard Reduction Demonstration Grant Program based on our analysis of the U.S. Department of Housing and Urban Development’s (HUD) Office of Lead Hazard Control and Healthy Homes grantees in Region 5’s jurisdiction.  Our audit objective was to determine whether the Department administered the Program in accordance with HUD’s and its own requirements. The…

We audited the State of Louisiana’s Restore Louisiana Homeowner Assistance program as part of our annual audit plan to review Community Development Block Grant Disaster Recovery programs.  Our objective was to determine whether the State ensured that it complied with (1) its eligibility requirements for the Homeowner Assistance program and (2) website reporting requirements. We found that The State did not always ensure that it complied…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) worked with HUD’s Office of Lender Activities and Program Compliance, Office of Single Family Housing, to resolve outstanding matters related to two September 2015 agreements with Fifth Third Bank (FTB) and its principal subsidiary, Fifth Third Bancorp, an Ohio-based bank holding company.  HUD failed to properly record required indemnifications in…

We audited Rainbow Terrace Apartments based on our analysis of risk factors related to multifamily projects in Region 5’s jurisdiction and the activities included in our fiscal year 2018 annual audit plan.  Our objective was to determine whether the project’s owner and management agent operated the project in accordance with the regulatory agreement and the U.S. Department of Housing and Urban Development’s (HUD) requirements. The project…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) approval of the Lexington-Fayette Urban County Housing Authority’s Moving to Work (MTW) Demonstration plan and capital funds drawdowns.  The review was performed based on risk indicators identified during audits of the Authority’s Rental Assistance Demonstration Program (RAD) conversion and its Section 8 Housing Choice Voucher Program.  The objective was to…

We audited the City of Hattiesburg’s HOME Investment Partnerships (HOME) program based on a referral from the U.S. Department of Housing and Urban Development (HUD), Office of Community Planning and Development’s field office in Jackson, MS, to address a request by the City’s mayor for a comprehensive review of the City’s HOME program.  In addition, we selected the City for review in accordance with our annual audit plan.  The…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Community Compass Technical Assistance and Capacity Building (Community Compass) program.  We conducted the audit because we received a complaint alleging that HUD did not ensure that the program operated in compliance with applicable requirements and we had not audited the program.  Our audit objective was to determine whether HUD had adequate…