The Chief Financial Officers Act of 1990 (Public Law 101-576), as amended, requires the Office of Inspector General to audit the financial statements of the Federal Housing Administration (FHA) annually. We audited the accompanying FHA financial statements and notes as of and for the fiscal years ending September 30, 2020 and 2019, which are comprised of the balance sheets, related statements of net cost, changes in net position, and combined statements of budgetary resources for the fiscal years then ended. We conducted these audits in accordance with U.S. generally accepted government auditing standards.
In our opinion, FHA’s fiscal years 2020 and 2019 financial statements were presented fairly, in all material respects, in accordance with the U.S. generally accepted accounting principles for the Federal Government. FHA reports our opinion in its Fiscal Year 2020 Annual Management Report. The results of our audit of FHA’s principal financial statements and notes for the fiscal years ending September 30, 2020 and 2019, including our report on FHA’s internal control and test of compliance with selected provisions of laws, regulations, and contracts applicable to FHA, are presented in this report. Our audit did not disclose any deficiencies in internal control that we consider to be material weaknesses or significant deficiencies and no instances of noncompliance with applicable laws, regulations, and contracts.
We have no new recommendations in this report; however, the Followup on Prior Audits section contains recommendations from prior-year audits that are still outstanding. While these recommendations relate to prior-year material weaknesses or significant deficiencies that have now been substantially resolved, FHA should continue to track and resolve these recommendations in accordance with departmental procedures.