Under Obama HUD Cooked Their Books To The Tune Of More Than 1/2 Trillion Dollars

In case you missed it, it was revealed that under the Obama Administration, The Department of Housing and Urban Development’s (HUD) books were being cooked for the past 3 years.  In fact, they are so corrupted that even after fixing $520 billion in bookkeeping errors, HUD’s Inspector General (IG) is reporting that they still cannot complete an audit and HUD still has no idea where it’s money is going. And, there appears to be no end in sight to this ongoing defrauding of the American taxpayers.

This corruption did not occur under the current Republican HUD Secretary Dr. Ben Carson, who was called a “disconcerting and disturbingly unqualified choice” by Nancy Pelosi and who CNN’s Issac Bailey calleduniquely unqualified for the job“.

No, it happened under the watch of corrupt Obama appointee Julian Castro, a Democrat.  And, Democrats were so impressed with his mismanagement of HUD that CNN and The Daily Beast, among others, wanted him to be Hillary’s VP.

How much is $520 billion? You could…

  • Give 22,608,295 people a Ford Focus
  • Give $4,262 to every American who pays income tax
  • Make a stack of $1 bills that’s 35,290 miles high
  • Lay it as $1 bills end to end and go around the world more than 2,000 times
  • Have a full time job M-F spending $50,000 every day for 40,310 years

Think about those things and your family’s financial struggles next time you talk to someone who doesn’t take this seriously.

The massive incompetence of HUD was due to the fact that nobody is every held accountable.  In fact, some of the highlights of the IG report as to why, for the 2nd time in a row, they could not perform an audit, were:

  • HUD’s lawyer’s refusal to sign a letter providing a list of HUD’s litigation
  • HUD’s improper use of accounting methods
  • $4.2 billion in Ginnie Mae loan assets that lack adequate support for an audit
  • The improper accounting for various assets and liabilities
  • Discrepancies between HUD’s subledger and general ledger accounts

If HUD would have simply followed industry standard GAAP (Generally Accepted Accounting Standards), like everyone else in the country does, we would not have this issue.  Instead they not only get caught, they flat out lied about it.

The IG stated in their report:

Our objective was to express an opinion on the fairness of HUD’s consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) applicable to the Federal Government

And, based on the EVIDENCE in HUD’s own books, they cited in their report:

HUD continued to use budgetary accounting…programs that was not performed in accordance with Federal GAAP

HUD’s accounting for its property, plant, and equipment did not comply with Federal GAAP.

HUD used a…method…that was not in accordance with GAAP for Federal grants.

CPD’s formula grant program accounting continued to depart from GAAP… Since 2013, we have reported that the information system used…was not designed to comply with Federal financial management system requirements. Further…budget year grant obligation balances continued to be misstated, and disbursements made using an incorrect USSGL attribute resulted in additional misstatements.

In fiscal years 2014 and 2015, FHA home equity conversion mortgage net loans receivable and liability for loan guarantee were not reported in accordance with GAAP.

What was HUD’s spokesman, Brian Sullivan, reply to these statements? He told The Daily Caller News Foundation’s Investigative Group in December 2016:

“HUD does apply generally accepted accounting standards,”

Just… Wow…

If this was ANY company (other than one affiliated with Obama or the Clintons), there would be at the minimum people in jail and massive fines, but more likely there would be congressional hearings and a slew of rushly enacted regulations and laws would be forced upon private businesses.  Yet, the continuous corruption of government wastes the money of all taxpayers to the sound of only crickets on Capital Hill.

Let us hope that Dr. Carson pursues this to get it fixed, hold the people who did it accountable, and see some terminations and possibly some jail time.

The people in Washington D.C. who have been fleecing us and laughing about it need to be held accountable, let the chips fall where they may.

PS. If you’re curious as to how this compares in scope to the top 10 US accounting scandals, take a look below:

 

The 10 Worst Corporate Accounting Scandals of All Time
Source: Accounting-Degree.org

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