The Housing and Urban Development Agency was accused of mismanagement throughout Obama’s term. But the annual “audits” of the agency never turned up the massive errors that were found in a recent audit requested by Dr. Ben Carson when he took over as HUD Secretary. Those errors amounted to over $516.4 Billion. That’s half a trillion dollars, if you’re counting.
The Office of the Inspector General noted in their findings:
The total amounts of errors corrected in HUD’s notes and consolidated financial statements were $516.4 billion and $3.4 billion, respectively. There were several other unresolved audit matters, which restricted our ability to obtain sufficient, appropriate evidence to express an opinion. These unresolved audit matters relate to (1) the Office of General Counsel’s refusal to sign the management representation letter, (2) HUD’s improper use of cumulative and first-in, first-out budgetary accounting methods of disbursing community planning and development program funds, (3) the $4.2 billion in nonpooled loan assets from Ginnie Mae’s stand-alone financial statements that we could not audit due to inadequate support, (4) the improper accounting for certain HUD assets and liabilities, and (5) material differences between HUD’s subledger and general ledger accounts. This audit report contains 11 material weaknesses, 7 significant deficiencies, and 5 instances of noncompliance with applicable laws and regulations.
HUD turned in their 2015-2016 reports, but did not correct the massive errors. In late December, they decided they’d better re-do the reports, and issued “restatements.” The Office of the Inspector General found them to be unreliable at best.
The OIG report goes on to state that the “misstatements” on the HUD reports were a result of several issues: improper budgetary accounting practices, unvalidated grant accruals, significant ledger to ledger discrepancies, and improper and unreliable accounting for assets and liabilities, among other things.
Though the report stops short of accusing HUD of actual fraud for all those years, it found “material weakness” pervasive throughout the agency in its budgetary processes.
Dr. Carson has his work cut out for him. The agency is rife with lack of personnel who know what they’re doing, and whopping errors that mean a complete lack of accountability with regard to taxpayer money. Their entire system did not comply with Federal Financial standards.
Good luck, Doc.