Federal Reports

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). Our objective was to express an opinion on the fair presentation of HUD’s consolidated financial statements in accordance with U.S. generally accepted accounting principles applicable to the Federal Government. This report presents our independent auditor’s report on HUD’s fiscal year 2020 consolidated financial statements and reports on internal control over financial reporting and compliance with laws, regulations, contracts, and grant agreements. HUD reports our opinion on its financial statements in its Fiscal Year 2020 Agency Financial Report.As part of auditing HUD’s consolidated financial statements, we are also responsible for auditing the financial statements of HUD’s two component entities, the Federal Housing Administration (FHA) and the Government National Mortgage Association (Ginnie Mae). Audit results on these entities are presented in Audit Reports 2021-FO-0001 and 2021-FO-0002, respectively.In our opinion, HUD’s fiscal year 2020 financial statements were presented fairly, in all material respects, in accordance with the U.S. generally accepted accounting principles for the Federal Government. However, we identified deficiencies that constituted one material weakness and one instance of noncompliance with applicable laws, regulations, contracts, and grant agreements. Specifically, HUD had weaknesses in its controls over financial reporting and did not always comply with Federal generally accepted accounting principles. HUD also did not comply with the Federal Financial Management Improvement Act, regarding certain requirements to establish and maintain financial management systems.This report contains a number of current recommendations for corrective actions addressed to the Offices of the Chief Financial Officer, Community Planning and Development, Housing – Federal Housing Administration, and Public and Indian Housing. The Followup on Prior Audits section contains outstanding prior-year recommendations. Most significant are those recommendations related to properly accounting for certain funding provided to HUD under the Coronavirus Aid, Relief, and Economic Security Act and improving and better documenting HUD’s estimation and validation methodologies for accrued grant liabilities. Additionalrecommendations specific to FHA and Ginnie Mae are in separate reports identified above.

An Amtrak signal maintainer based in Chicago, Illinois, was terminated from employment on December 3, 2020, following his administrative hearing. Our investigation found that the former employee violated company policy by leaving during his work shifts to drive for a rideshare company. We also found that he routinely sat in his car during his work shifts for extended periods of time. During his interview, he admitted to leaving during his work shift to drive for the rideshare company, including when he was scheduled and paid to work overtime.

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The Office of Inspector General evaluated NASA’s processes and procedures regarding the acquisition, handling, storage, and disposal of hazardous materials.