HUD OIG OFFICE OF AUDIT Tracey Carney, Acting Regional Inspector - PowerPoint PPT Presentation

HUD OIG OFFICE OF AUDIT Tracey Carney, Acting Regional Inspector General Patrick Bannon, Disaster Recovery Liaison Nikita Irons, Assistant Regional Inspector General 1

Objectives What is HUD OIG?  How OIG assists HUD  How do we select auditees?  HUD programs affected by Hurricanes Katrina and Rita  CDBG disaster funding  Types of audits  Audit resolution  2

What is HUD OIG? 3

The HUD Office of Inspector General (OIG) was created with the signing of the Inspector General Act of 1978 (Public Law 95-452). The Act sets out certain authorities that permit the OIG to initiate, carry out, and complete audits and investigations of HUD programs and operations. 4

OIG is an independent office within HUD.  Serves under the “ general supervision ” of the Secretary of HUD.  Dual independent reporting relationship to the agency head and to the Congress. 5

Inspectors General are authorized to:  Conduct audits and investigations  Access all records and information of the agency and program participants  Issue subpoenas for records and documents  Hire staff and control budget resources 6

We Conduct our Mission by:  Conducting audits, investigations, and other activities relevant to the HUD mission.  Keeping the Secretary, Congress, and the public fully and currently informed.  Working collaboratively with HUD and program participants to ensure success of HUD program goals. 7

Kenneth Donohue, Inspector General Michael Stephens, Deputy Inspector General James Heist, Assistant Inspector General for Audit Brenda Patterson, Deputy Assistant Inspector General for Audit 8

Gulf Coast Region– Office of Audit Louisiana Mississippi Tracey Carney, Acting Regional Inspector General Patrick Bannon, Disaster Recovery Liaison Nikita Irons, Assistant Regional Inspector General 9 Staff Auditors 9

Creation of Gulf Coast Region Office of Audit The Office of Audit has been tasked to review HUD’s activities related to Gulf Coast hurricane disaster relief efforts. This effort resulted in the establishment of a Gulf Coast Region to be the focal point for all audits in the coming years relating to HUD’s relief efforts and to coordinate with other agencies’ OIGs that are involved in the overall effort. 10

How OIG Assists HUD 11

OIG’s Strategic Plan Strategic Goal 1 – Help HUD resolve its “Major Management Challenges” by being a relevant and problem-solving advisor to the Department. A new major challenge to HUD is addressing disaster relief in response to natural disasters. Pursuant to this goal, the strategic plan lays out four objectives. 12

Goal 1 Objectives  Objective 1: Contribute to Improving the Integrity of Single-Family Insurance Programs.  Objective 2: Contribute to a Reduction in Erroneous Payments in the Rental Assistance Programs.  Objective 3: Contribute to Improving HUD’s Execution and Accountability of Fiscal Responsibilities.  Objective 4: Contribute to Resolving Significant Issues Raised or Confronted by HUD and OIG’s 13 Stakeholders.

Office of Audit Activities  Designed to:  Promote economy, efficiency, and effectiveness in the administration of HUD’s programs.  Detect and prevent fraud, waste, and abuse in HUD programs and operations.  Ensure compliance with applicable laws and regulations. 14

How do we select auditees? 15

Selecting Audits  Potential audit areas are developed through:  Discussions with HUD staff  Complaints  Congressional requests  Reviews of proposed legislation, regulations, and other HUD issuances  High-risk programs 16

Why the focus on Supplemental Funding? Funding  Programs have inherent risks as related to  fraud, waste, and abuse Congressional and Presidential interest in the  use of hurricane funds to ensure that they are reaching those who need them. 17

HUD PROGRAMS Supplemental Funding 18

Katrina Disaster Housing Assistance Program  Katrina Disaster Housing Assistance Program (KDHAP)  $79 Million funded to HUD by FEMA to relocate almost 102,000 families in PDD  Public Housing Agencies in 44 states accepted evacuees  Program expired on March 11, 2006 and any recipients still in this program were transferred to the new Disaster Voucher Program 19

Disaster Voucher Program  Disaster Voucher Program (DVP) – Congress appropriated $390,000,000 to HUD to implement the program.  Currently assisting 22,413 families  These are Portable Section 8 Vouchers  Program expires September 30, 2007  Criteria  Living in HUD Rental Assistance Program prior to Hurricane  Living in emergency shelters and/or homeless 20

Disaster Housing Assistance Program  Disaster Housing Assistance Program (DHAP) – FEMA initiated rental program  No HUD Public Housing or Section 8 tenants  Up to 45,000 families ($560 Million)  Direct payments to families and landlords  HUD assumed responsibility December 1, 2007 21

Challenges of the American Recovery Act 1. Rapid disbursement 2. Transparency 3. Reporting requirements 4. Need for program offices involvement to report instances of fraud 22

Disaster Community Development Block Grants Gulf Coast States 23

Traditional Community Planning Development  Major Grant Programs:  Community Development Block Grants  The HOME Program  Emergency Shelter Grants  Housing Opportunity for Person with AIDS (HOPWA)  National CPD Funding:  FY 2006 Budget = $11 billion  FY 2005 Budget = $8 billion 24

Disaster Community Development Block Grant (Hurricanes Katrina and Rita)  Over $19 Billion to five Gulf Coast States (until expended)  Alabama $ 95,613,574  Florida $ 182,970,518  Louisiana $ 13,410,000,000  Mississippi $ 5,481,221,059  Texas $ 503,194,849 25

Types of Audits 26

Types of Audits  Internal (HUD)  External (State Of Louisiana, Mississippi Development Authority, Subrecipients, etc.) 27

Internal Audits (HUD)  Participant Eligibility  Management Oversight 28

Potential Audit Objectives  Proper determination of participant eligibility  Implementation of controls to prevent duplicate and fraudulent payments  Provision of adequate management oversight 29

External Audits  Participant eligibility  Monitoring/oversight of subrecipients and/or contractors  Implementation of controls  National objectives  Eligibility of costs  Compliance with grant agreement(s) 30

Potential Audit Objectives  Proper determination of participant eligibility  Grantee monitoring of subrecipients and/or contractors to ensure provision of services  Policies and procedures developed in accordance with HUD rules/regulations  Implementation of system controls  Eligibility of costs (i.e., administrative, program, etc) 31

Audit Resolution 32

How do audits get resolved?  OIG keeps the auditee informed throughout the audit except in the case of fraud.  OIG and the auditee discuss the findings at an exit conference.  Auditees are given a draft report and are allowed to comment on the findings.  The report is addressed to HUD.  HUD is responsible for resolving the recommendations. 33

Possible Audit Resolution Outcomes  Criminal referrals  Debarments/suspensions  Repayment agreements  Development and implementation of adequate internal controls  Recognition for a job well done 34

Audit Resolution Process in Brief HUD Handbook 2000.06, REV-3, contains the Department’s comprehensive instructions for the Audits Management System. These instructions clarify audit resolution requirements for recommendations containing costs and final action processing. At Report Issuance - OIG records the amounts discussed in the findings and recommendations in the system as part of the initial cost entry. At Management Decision - Management must take a position on all costs included in the recommendation. Until OIG concurs with management’s determination, the recommendation has no management decision. Upon OIG concurrence with the management decision, the amount to be disallowed or allowed must be recorded in the system. There can be no undecided balance on costs contained in the original recommendation to record a management decision unless action on the recommendation is suspended due to judicial, legislative, or investigative actions. If one of these special categories exists, the decision may be recorded without deciding the costs. 35

How do you get more information on completed OIG audits?  Semiannual Report to Congress  OIG’s Web Site – http://www.hud.gov/oig/oigindex.html 36

HOW TO CONTACT THE OIG HOTLINE There are four ways to contact the OIG Hotline: You can call us toll-free at: 1-800-347-3735 You can fax us at: 202-708-4829 You can e-mail us at: hotline@hudoig.gov You can write us at: HUD OIG Hotline (GFI) 451 7th Street, SW Washington, DC 20410 37

Questions? 38