Federal Reports

We audited the U.S. Department of Housing and Urban Development’s (HUD) Real Estate Assessment Center’s inspection process. The audit objectives were to determine whether the Center (1) ensured that public housing properties were inspected within required timeframes before the coronavirus disease 2019 (COVID-19) pandemic; (2) could improve its Big Inspection Plan for inspecting high-priority non-National Standards for the Physical Inspection of Real Estate (NSPIRE) demonstration public housing properties; and (3) had experienced delays in inspecting the physical condition of public housing properties approved under the NSPIRE demonstration.Before HUD postponed physical inspections due to COVID-19, the Center did not consistently ensure that public housing properties were inspected within required timeframes. The Center developed its Big Inspection Plan to inspect all NSPIRE demonstration and non-NSPIRE public housing and multifamily properties by March 31, 2023; using for its public housing portfolio, a phased approach to inspect non-NSPIRE properties. We found that under phase I of the Plan, the Center did not inspect all of the high-priority non-NSPIRE public housing properties by December 2021. Under phase II, the inspections for these properties were generally not given priority. Further, the Center experienced delays in inspecting public housing properties approved to participate under the NSPIRE demonstration. HUD can improve its procedures and controls, including the coordination of the procurement for inspection services, to ensure that public housing properties are inspected in a timely manner. Making such improvements will better position HUD’s Office of Public and Indian Housing to know whether the physical conditions in public housing properties are decent, safe, and sanitary. These improvements could also result in Public Housing Assessment System scores better reflecting the current conditions of the properties.We recommend that the Deputy Assistant Secretary for the Center prioritize the inspection of public housing properties that were (1) not included in the NSPIRE demonstration but were identified as high priority under the Center’s Big Inspection Plan and (2) approved to participate under the NSPIRE demonstration that the Center was unable to inspect by March 31, 2023. We also recommend that the Deputy Assistant Secretary for the Center implement adequate policies, procedures, and controls to ensure that public housing properties will be inspected within required timeframes.

For our final report on fiscal year (FY) 2022 improper payment reporting, our review objective was to determine the U.S. Department of Commerce's (the Department’s) compliance with the Payment Integrity Information Act of 2019 (PIIA). To determine FY 2021 compliance, we reviewed the “Payment Integrity” section of the Department’s FY 2021 Agency Financial Report (AFR), accompanying materials to the AFR, and other improper payment-related documentation. We also assessed the Department’s efforts related to preventing and reducing improper payments and unknown payments. Based on our review, we concluded that the Department complied with the PIIA criteria for FY 2021. We did not identify any actions needed to further improve prevention and reduction measures within the Department.

OIG reviewed USDA’s compliance with improper payment and high-dollar overpayment requirements for FY 2022.