One of the first things Carson did after being confirmed as Secretary of HUD was to go through the Obama administration’s budget with a surgeon’s precision.
It wasn’t long until he found a big problem.
“The total amounts of errors corrected in HUD’s notes and consolidated financial statements were $516.4 billion and $3.4 billion respectively,” the auditors wrote.from theoffice of the Inspector General (Source)
Will they be held accountable?
That’s for attorney General Jeff Sessions to decide.
The Daily Wire reports that wasn’t the only problem he found.
According to the Housing and Urban Development Report, other big problems include:
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) $4.2 billion in non-pooled loan assets from Ginnie Mae’s standalone 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 sub-ledger and general ledger accounts.
This audit report contains 11 material weaknesses, 7 significant deficiencies, and 5 instances of noncompliance with applicable laws and regulations.
The auditors said the massive budgetary problems “were due to an inability to establish a compliant control environment, implement adequate financial accounting systems, retain key financial staff, and identify appropriate accounting principles and policies.”