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We audited the U.S. Department of Housing and Urban Development’s (HUD) use of funds for building improvements, managed by its Office of Administration, in response to a request from the U.S. House and Senate Committees on Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies.  HUD planned to use repurposed and transferred funds from fiscal years 2015 and 2016, totaling $18.3 million, for Office of Administration projects that included building improvements at its headquarters, the Robert C. Weaver Building, and for renovation and relocation expenses for three field offices.  Our objective was to determine whether HUD used the funds it requested and received for building improvements in accordance with its requests and the approval of the Committees.

HUD used the funds it requested and received for building improvements in accordance with its requests and approval from the Committees.  HUD obligated the funding in accordance with its stated intent, it maintained documentation to support expenditures, and it was making repairs to the Weaver Building.

The General Services Administration reduced HUD’s fiscal year 2017 rent for the Weaver Building by $7.8 million to credit HUD for its financial contributions, including $7.3 million of the repurposed and transferred funds, for elevator repairs and sanitary plumbing in fiscal year 2016.  We have concerns regarding HUD’s treatment of these rent credits and its process for tracking their use.  Because this issue was beyond the scope of this review, we plan to conduct a separate audit in fiscal year 2019 to determine whether HUD properly tracked and used rent credits in accordance with applicable requirements.

This report contains no recommendations.