HUD OIG is conducting research to assess the U.S. Department of Housing and Urban Development (HUD)’s information technology (IT) infrastructure’s preparedness and capability to support mass mandatory telework due to the coronavirus disease of 2019 (COVID-19). This also included assessing for compliance with HUD information technology policies and Federal information system security requirements.  The CARES Act provided HUD with approximately $12 billion to mitigate the effects of the COVID-19 crisis and the ability to waive certain requirements.

HUD OIG is auditing the Federal Housing Administration’s (FHA) Home Equity Reverse Mortgage Information Technology (HERMIT) system as part of the internal control assessments required for the fiscal year 2019 financial statement audit under the Chief Financial Officer’s Act of 1990.  HERMIT provides an end-to-end solution (loan origination to disposition) on the Home Equity Conversion Mortgage (HECM) case-processing activities and assists FHA in efficiently managing the HECM portfolio.

HUD OIG has contracted with CliftonLarsonAllen LLP (CLA) to conduct the FHA financial statement audit for the fiscal year(s) ended September 30, 2020, to express an opinion on the financial statements, as well as to report any significant deficiencies and material weaknesses in internal control over financial reporting, and report on the results of their tests of compliance with laws, regulations, contracts, grant agreements, and other matters, if applicable.

HUD OIG has contracted with CliftonLarsonAllen LLP (CLA) to conduct the Ginnie Mae financial statement audit for the fiscal year(s) ended September 30, 2020, to express an opinion on the financial statements, as well as to report any significant deficiencies and material weaknesses in internal control over financial reporting, and report on the results of their tests of compliance with laws, regulations, contracts, grant agreements, and other matters, if applicable.

HUD OIG has contracted with CliftonLarsonAllen LLP (CLA) to conduct the HUD consolidated financial statement audit for the fiscal year(s) ended September 30, 2020, to express an opinion on the consolidated financial statements, as well as to report any significant deficiencies and material weaknesses in internal control over financial reporting, and report on the results of their tests of compliance with laws, regulations, contracts, grant agreements, and other matters, if applicable.

HUD OIG is reviewing HUD’s fraud risks identified for funds received from the Coronavirus Aid Recovery and Economic Stability Act for the Community Development Block Grant (CDBG) and Emergency Solutions Grant (ESG) programs.  Our objective will be to gain an understanding of HUD’s fraud risk management practices and the fraud risks HUD has identified for the CDBG and ESG funds appropriated under the CARES Act and develop an inventory of fraud risks not already identified by HUD.

HUD OIG is auditing HUD’s disaster preparedness from 2005 to 2018.  We performed this audit due to an agreement with six other Inspectors General as part of a Disaster Assistance Working Group-Cross Cutting Functional Effort by the Council of the Inspectors General on Integrity and Efficiency to determine to what extent the Federal departments were prepared for upcoming natural disasters.

HUD OIG is reviewing a public housing authority in Texas after receiving complaints about the Authority’s management and oversight.  The review objective is to determine whether the Authority followed Federal and its own procurement requirements for the board’s legal services, paid its administrative costs in accordance with Federal requirements, and conducted its board meetings in accordance with the State of Texas’ requirements.

HUD OIG is reviewing an Ohio Housing Authority’s public housing program.  The Authority received more than $8.3 million in operating subsidies and more than $5.7 million in Capital Fund grants in fiscal year 2018. The audit objective is to determine whether the Authority complied with Federal and its own requirements for procuring services and disbursing program funds.  

HUD OIG is reviewing the State of North Carolina’s Community Development Block Grant Disaster (CDBG-DR) program.  The State received an appropriation of more than $741 million in CDBG-DR funding.  The review objective was to determine whether the State of North Carolina has the capacity to administer its CDBG-DR grants in accordance with applicable regulations and requirements.