Federal Reports

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Federal Housing Administration (FHA) based on the results of another audit, which found that the lender improperly filed for partial claims before completing the loan modifications and reinstating the loans. Our audit objective was to determine whether FHA improperly paid partial claims that did not reinstate the delinquent loans.We found that FHA improperly paid partial claims that did not reinstate their related delinquent loans. From a sample of 87 partial claims reviewed, FHA paid 47 partial claims totaling more than $2.7 million that did not cure the loan delinquency. By using a statistical projection, we estimated that the FHA insurance fund was unnecessarily depleted by $27.1 million in partial claims. We recommend that the Deputy Assistant Secretary for Single Family Housing (1) take corrective action against lenders for the improper partial claims that did not reinstate the delinquent loans and have not been repaid, (2) design controls to protect the insurance fund from improper partial claims that did not reinstate the loans to put $27.1 million to better use, and (3) update program guidance, clarifying that upon application of the partial claim funds, the mortgage must be fully reinstated with no unpaid amounts.

This report provides the results of our review of the circumstances surrounding the death of Peace Corps Volunteer Bernice Heiderman on January 9, 2018, in Comoros. Our review identified several vulnerabilities associated with the Peace Corps’ failure to provide an early diagnosis and prompt treatment for PCV Heiderman’s malaria. This report makes 7 recommendations to the Peace Corps to address the vulnerabilities we identified and make it more likely that medical officers will provide timely diagnosis and prompt, effective treatment for malaria so that future Volunteer deaths from the disease can be prevented.

What We Looked AtSince 2003, the Government Accountability Office (GAO) has identified Federal real property management as a high-risk area, prompting reform efforts across the Federal Government. The Department of Transportation (DOT), excluding the Federal Aviation Administration (FAA), maintains approximately 300 office properties across the country, through ownership, lease, or an occupancy agreement with another agency, primarily the General Services Administration (GSA). In fiscal year 2018, DOT (excluding FAA) reported expending over $101 million for just the office space it occupies through GSA. We initiated this review in response to these factors, as well as our recent audit of FAA's office and warehouse leases and the potential to improve the efficiency of departmental expenditures. Accordingly, our audit objective was to assess DOT's utilization of its office spaces, focusing on the degree to which its office spaces comply with the Agency's utilization standard.What We FoundThe Department's May 2016 Office Space Design Standard Policy (Policy) only requires DOT to apply the Agency's utilization standard to office space renovations and new acquisitions, which comprise a very small percentage of the total office space. While allowable, this approach limits the effect of Governmentwide initiatives to promote more efficient use of Federal office space. It also does not fully support DOT's own stated Policy goals of ensuring efficient use of all office space and regularly reviewing space to act on efficiency opportunities when possible. The Department also lacks controls to ensure that its Operating Administrations (OA) document justifications if they deviate from the Agency's standard; does not verify that OAs properly calculate their office space utilization rates; and does not have a complete and accurate system for tracking DOT office spaces. Finally, DOT lacks an overall strategic approach for reviewing its entire office space portfolio to find potential efficiency opportunities and cost savings. Based on our findings, we estimate that DOT could put $2.1 million to better use because it is paying for office space in excess of the Agency's utilization standard.Our RecommendationsWe made five recommendations to improve DOT's achievement of efficient office space utilization. The Department concurred with four and partially concurred with one.