The U.S. Department of Housing and Urban Development (HUD), an organization which Obama praised and poured funding into, has just received one of the worst audit results in American history. According to the 2015 and 2016 Fiscal Years audit, there was a $500 billion error…and several other unresolved audit matters.
The person in charge of HUD at the time was an Obama appointee and close friend, who is often mentioned as having presidential ambitions.
Originally created by Lyndon B. Johnson in 1965, the bloated Department of Housing and Urban Development grew to a bloated $32.6 annual budget as of 2014, but after a new audit from the years following was just released, many are wondering what the government has been trying to hide.
New documents show a $516 billion dollar discrepancy in the Department’s budget, which is leaving many wondering what on earth Obama’s administration could have done with such a large chunk of change. The auditors also found 11 material weaknesses, which are almost unheard of in audits.
In addition to this, the Office of General’s Counsel refused to sign the management representation letter—this is a clear indication that someone has been cooking the books, which shouldn’t be surprising when you consider who Obama appointed to lead the agency right before this $500 billion discrepancy.
In 2014, just before the massive sum of wealth was misreported, Obama appointed far-left Democrat Julian Castro to lead the department. Castro has a long history of advocating for socialist policies, and was even considered a possible vice presidential running mate for Clinton in the 2016 election. The former mayor of San Antonio comes from a powerful Democratic family in Texas.
The official audit reports the following:
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.
Legislators and watchdog organizations have demanded a further investigation into this matter, and even the HUD itself has recommended that it:
“(1) reassess its current consolidated financial statement and notes review process to ensure that sufficient internal controls are in place to prevent and detect errors, (2) evaluate the current content of HUD’s consolidated note disclosures to ensure compliance with regulations and GAAP, and (3) develop a plan to ensure that restatements are properly reflected in all notes impacted.”