Federal Reports

In this semiannual report, we discuss both the major accomplishments and activities of OIG from April 1, 2021 through September 30, 2021, as well as its goals and future plans.

We conducted a limited review of the U.S. Department of Housing and Urban Development’s (HUD) Coronavirus Aid, Relief, and Economic Security (CARES) Act supplemental public housing operating funds (supplemental funds). Our objective was to assess public housing agencies’ (PHA) experiences and challenges and HUD’s efforts in providing guidance related to the administration of the supplemental operating funds under the CARES Act.We found that the PHA survey respondents generally cited positive experiences and no major challenges related to the administration of supplemental funds under the CARES Act. Although there are no recommendations in this memorandum, we provided two key considerations for HUD. HUD should consider continuing toKeep the lines of communication open with PHAs to (1) clarify guidance when warranted and (2) ensure that the PHAs know how to properly use the reporting portal, once it is functional, to meet the quarterly reporting requirements.Monitor the PHAs that are slow in drawing down supplemental funds and offer assistance as applicable to ensure that funds are spent by the deadline of December 31, 2021.

The Chief Financial Officers Act of 1990 (Public Law 101-576), as amended, requires the Office of Inspector General to audit the financial statements of the Government National Mortgage Association (Ginnie Mae) annually. Attached are the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) results of the audit of Ginnie Mae fiscal years 2021 and 2020 financial statements and reports on internal control over financial reporting and compliance with laws, regulations, contracts, and grant agreements.We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of Ginnie Mae as of and for the fiscal years ended September 30, 2021, and 2020, to provide reports on Ginnie Mae’s internal control over financial reporting and compliance with laws, regulations, contracts, and grant agreements in its financial reporting. Our contract with CLA required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.In its audit of Ginnie Mae, CLA reported:Ginnie Mae’s financial statements as of and for the fiscal years ended September 30,2021, and 2020, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles;no material weaknesses for fiscal year 2021 in internal control over financial reporting, based on limited procedures performed; andno reportable noncompliance issues for fiscal year 2021 with provisions of applicable laws, regulations, contracts, and grant agreements tested and no other matters.In connection with the contract, we reviewed CLA’s reports and related documentation and inquired of its representatives. Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, opinions on Ginnie Mae’s financial statements or conclusions about 1) the effectiveness of Ginnie Mae’s internal control over financial reporting and 2) Ginnie Mae’s compliance with laws, regulations, contracts, and grant agreements. CLA is responsible for the attached Independent Auditors’ Report, dated November 15, 2021, and the conclusions expressed therein. Our review disclosed no instances in which CLA did not comply, in all material respects, with U.S. generally accepted government auditing standards.We will provide a replacement report for posting, once Ginnie Mae publishes its annual report, which will include the audited financial statements. The replacement posting will include the IPA’s report as well as the audited financial statements.