Develop and execute a detailed plan and timeline for both testing and reporting estimates of improper payments in the PIH-TBRA and PBRA programs in compliance with Federal law and OMB guidance.

Status

As of January 30, 2026, HUD has not provided a management decision, detailed plan, or timeline as to how HUD will respond to the recommendation.  When OIG inquired on the status of this recommendation, HUD reported it had completed work in this area that was reflected in its fiscal year 2025 Annual Financial Report (AFR). However, based on what HUD reported it is unclear if it addressed our recommendation. OIG recently initiated the annual Payment Integrity Information Act (PIIA) audit which reviews HUD’s payment integrity information to determine HUD’s compliance. During this audit OIG will also determine the status of HUD’s efforts in terms of this recommendation.

Analysis

For HUD to close this recommendation, it must finish testing the full life cycle of payments in these programs and publicly report estimates of the improper payments in them. Merely producing a plan with future action target dates is not sufficient to meet the spirit of this recommendation.

PBRA and PIH-TBRA are the two largest program expenditures in HUD's portfolio, totaling $55.6 billion in FY 25, or 62.5 percent of HUD's total expenditures. HUD has been challenged with developing a compliant sampling methodology that can test the full payment cycle, and, that can be executed within the required timeframes. To fully address this recommendation, the sampling methodology should test the full payment cycle, and the associated sample testing and statistical estimation must be completed in time to be included in the Annual Financial Report.
Implementation of this recommendation will result in HUD better-safeguarding taxpayer dollars and decrease improper payments.