The Department of Housing and Urban Development recently conducted an internal audit and found an amazing anomaly. They found accounting errors to the tune of over $500 Billion!
Via HUD website:
What We Found
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.
This is why big government is corrosive to the civil society. Departments like HUD demand more and more taxpayer funds and then completely mismanage them or worse, commit fraud.
President Trump needs to not only clean up this mess but also hold the past administration responsible for their incompetence or criminal behavior. The nonsense has to stop.