Department of Housing and Urban Development’s (HUD’s) financial books are in such bad shape that HUD’s Inspector General (IG) can’t complete an audit even after HUD officials corrected $520 billion in bookkeeping errors, according to a new IG report.
Officials at HUD fixed $3.4 billion in errors from its 2015 books and $516.4 billion in errors from its 2016 books after the IG in December was unable to issue an opinion on either year’s financial statements and highlighted 11 material weaknesses, seven significant deficiencies and five instances of failure to comply with laws and regulations.
These same problems have been reported for three straight years by the IG.
But it still could not issue an opinion on HUD’s financial statements after the IG gave the department an extension and HUD re-submitted them three months later, with all of those weaknesses unresolved.
The unresolved issues — the same ones the IG highlighted in its December report — include HUD lawyers’ refusals to sign a management letter listing all HUD litigation, HUD’s improper accounting methods, failure to correctly measure assets and liabilities, discrepancies between general ledger and sub-ledger accounts, and $4.2 billion in loan assets from Ginnie Mae’s financial statements that lack sufficient support for an audit.
Brian Sullivan, HUD’s spokesman, told The Daily Caller News Foundation’s Investigative Group in December 2016 that, “HUD does apply generally accepted accounting standards,” when the IG said the department does not.
The IG, in addition to fixing old recommendations, told HUD to reassess its financial statement review process to catch errors and make sure its financial notes comply with generally accepted accounting principles.
So HUD practically ignored all financial accountability laws in practice. So you’d imagine that Castro would be shamed by these revelations. BUT…you would be very wrong!
In fact, he actually tried to counsel Ben Carson on how NOT to mess up the department. How arrogant!
HUD is supposed to have a mission to help provide affordable housing for the needy, but as usual, Democrats have totally screwed it up with corruption.
Hopefully, Ben Carson can use some of the good sense he’s displayed in order to get this department back in shape.
One good idea would be to fire all Obama appointees, or anybody that has an Obama decal on their car in the parking lot. CONSERVATIVE FIGHTERS