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We completed a risk assessment of the U.S. Department of Housing and Urban Development’s (HUD) grant closeout process as required by the Grants Oversight and New Efficiency (GONE) Act of 2016, Public Law 114-117.  Our objective was to determine whether an audit or review of HUD’s grant closeout process was warranted. 

We found that a moderate risk was associated with HUD’s grant closeout process and recommend that a full audit be performed in fiscal year 2019.  Specifically, we identified concerns with (1) grant data, (2) HUD’s policies and guidance, (3) the volume of grants involved and the speed with which they were closed, and (4) improper deobligation of grant funds.

This memorandum does not contain recommendations.  We will use the risk assessment to determine the scope of the audit of HUD’s grant closeout process.