Audit Reveals $516.4 BILLION Of Mismanaged Funds In Obama’s HUD

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Housing and Urban Development Secretary Ben Carson has got a lot of work to do.

According to a new, independent audit of the last years of President Barack Obama’s term — 2015 and 2016, — there have been an incredible mismanagement of funds and a wealth of errors, reports The Truth Division.

Here’s what Audit Report 2017-FO-0005 notes:

“The total amounts of errors corrected in HUD’s notes and consolidated financial statements were $516.4 billion and $3.4 billion, respectively. There were several other unresolved audit matters, which restricted our ability to obtain sufficient, appropriate evidence to express an opinion.”
“These unresolved audit matters relate to (1) the Office of General Counsel’s refusal to sign the management representation letter, (2) HUD’s improper use of cumulative and first-in, first-out budgetary accounting methods of disbursing community planning and development program funds, (3) the $4.2 billion in nonpooled loan assets from Ginnie Mae’s stand-alone financial statements that we could not audit due to inadequate support, (4) the improper accounting for certain HUD assets and liabilities, and (5) material differences between HUD’s subledger and general ledger accounts. This audit report contains 11 material weaknesses, 7 significant deficiencies, and 5 instances of noncompliance with applicable laws and regulations.”

That is a lot of waste, fraud, and abuse. Ben Carson needs to do a great deal of damage repair.

The audit continues, noting exactly why they made a “check-up” of the department:

“Our objective was to express an opinion on the fairness of HUD’s consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) applicable to the Federal Government. This report presents our reissued independent auditor’s report on HUD’s fiscal years 2016 and 2015 (restated) consolidated financial statements, including an update to our report on HUD’s internal controls.”

You can see the entire audit here.

The Inspector General recommends that HUD reassess its current consolidated financial statement and notes review process to ensure that sufficient internal controls are in place to prevent and detect errors, evaluate the current content of HUD’s consolidated note disclosures to ensure compliance with regulations and GAAP, and develop a plan to ensure that restatements are properly reflected in all notes impacted.

 

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