What the HUD IG discovered may be one of the biggest bookkeeping errors in the history of the United States government.
In total, the report found errors in the amount of $520 billion. The March 1 report found errors in the compilation of financial notes and consolidated financial statements typically used in financial audits.
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.”
This audit report revealed 11 material weaknesses, 7 significant deficiencies, and 5 instances of noncompliance with applicable laws and regulations.”
The egregious errors uncovered include improper use of cumulative and first-in, first-out budgetary accounting methods for disbursement of community planning and development program funds.
The IG also found material differences between HUD’s sub-ledger and general ledger accounts, as well as improper accounting of certain HUD assets and liabilities.
The Office of General Counsel at HUD refused to sign the management representation letter.
If these accounting practices were found at a publicly held company, senior executives would be looking at dismissal, along with possible prosecution and prison sentences.
By getting a firm handle on the financial condition of his agency, Secretary Carson is doing exactly the job he was appointed to do. It’s an obvious first step in fulfilling President Trump’s pledge to “drain the swamp.”
While the audit has not generated significant media attention, what also remains totally overlooked is this dreadful financial performance happened under the leadership of former HUD Secretary Juan Castro.
Castro was prominently mentioned as a possible running mate for Hillary Clinton in 2016. Obviously the Democrat hierarchy is grooming Castro as a future first Hispanic vice presidential or presidential candidate.
Before Democrats get too far down that road, Congress should investigate was happened to the $520 billion and whether or not the bookkeeping shenanigans were deliberate under the Obama Administration and Castro’s watch. Or, whether they were due to gross incompetence.
The financial problems at HUD are nothing totally new. Under Andrew Cuomo’s leadership in the second term of the Clinton Administration, questions about the agency’s finances arose as well.
Source: The Political Insider
This kind abuse goes on regardless of party affiliation. There a lot of money in the pot and people have been stealing for decades. It’s called government. As for Carson discovering this …….I don’t think the man could find a 747 in it’s own hanger. I wouldn’t let this brain surgeon operate on my big toe…