Federal Reports

We audited the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) Claims Without Conveyance of Title (CWCOT) program.  We selected this review to assist HUD in recovering improper payments and to reduce the risk of losses to the FHA insurance fund. The objective of our audit was to assess whether HUD is appropriately demanding and collecting improper payments identified for CWCOT loans by its Mortgagee Compliance Manager (MCM).  

We found that HUD has not been making demands for or collecting repayment of improper payments identified by the MCM contractor during its CWCOT reviews.  As a result, HUD paid improper claims and failed to recapture more than $10.5 million determined to be owed.  CWCOT’s review is critical for HUD to receive reimbursement from lenders for its improper payments, in turn preserving and protecting the FHA insurance fund.
 

The Tennessee Valley Authority’s (TVA) Enterprise Risk Management (ERM) business unit focuses on identifying and prioritizing enterprise risks.  Annually, ERM leads the preparation of an enterprise risk portfolio, which includes risks across TVA, to aid leadership in strategic and business planning processes.  Each business unit includes their specific risks in the portfolio and documents the probability of occurrence, financial impact, and actions to manage the risk.  TVA Labor Relations included Lack of Robust Pathways and Pipelines to Support Workforce Readiness and Availability risk in the fiscal year 2025 ERM risk portfolio. The risk description stated, "Failure to take swift and strategic action to develop and execute a comprehensive and holistic workforce strategy could result in our inability to take on new projects, innovate sustainable technology, and continue to deliver on TVA's mission."  The actions to address the risk included apprentice recruitment and utilization measures, the establishment of a workforce development team and portal, and an hourly layoff process.  Due to the importance of workforce readiness and availability, we conducted an audit to determine if TVA was taking planned actions and measuring the impact of completed actions. 

We determined TVA has taken actions to address the workforce readiness risk. TVA Labor Relations has completed 13 of 14 mitigating actions identified for this risk.  However, we determined TVA was not effectively measuring the impact of completed actions on the risk’s probability of occurrence and financial impact. In addition, some risk information was not documented accurately. 

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.

U.S. International Development Finance Corporation (DFC), Office of Inspector General (OIG), Semiannual Report to Congress for the reporting period October 1, 2025 - March 31, 2026, in accordance with the Inspector General Act of 1978, as amended (IG Act).