Gov’t Watchdog: HUD’s Financial Books Are Impossible To Audit Photo of Ethan Barton

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A government watchdog says it can’t audit billions in Department of Housing and Urban Development (HUD) spending because the agency’s financial books are kept so poorly.

 

HUD’s financial statements and systems are missing records, inaccurate and sometimes even violated federal laws, according to a HUD inspector general report released Monday. Included among the programs with useless financial accounting records is nearly $20 billion at the Government National Mortgage Association.

 

“This audit report contains nine material weaknesses, eight significant deficiencies in internal controls and six instances of noncompliance with applicable laws and regulations,” the report says. “These weaknesses were due to an inability to establish a compliant control environment, implement adequate financial accounting systems, retain key financial management staff and identify appropriate accounting principles.”