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Crime, Fraud, Waste, and Abuse
December 18, 2025
  • Chief Financial Officer
2026-FO-0002
View Full Report

We contracted with the independent public accounting firm of Sikich CPA LLC to audit the financial statements of HUD as of and for the fiscal year ending September 30, 2025, and to provide reports on HUD’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters, including whether financial management systems complied substantially with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA).  Our contract with Sikich required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency. 

 In its audit of HUD, Sikich reported 

  • A Disclaimer of Opinion on HUD’s financial statements as of and for the fiscal year ending September 30, 2025.  Management indicated in its written representations that it cannot assert to the fair presentation of the FY 2025 HUD financial statements. Since management could not make this assertion, Sikich was unable to express an opinion on the fair presentation of HUD’s financial statements.
  • Two significant deficiencies for fiscal year 2025 in internal control over financial reporting, based on the limited procedures performed.  The significant deficiencies were related to internal control deficiencies identified by the HUD AIR Program and internal control deficiencies over FHA’s loans receivables.   
  • No reportable noncompliance issues for fiscal year 2025 with provisions of applicable laws, regulations, contracts, and grant agreements or other matters.
  • Due to the matter discussed in the Basis for Disclaimer of Opinion paragraph, Sikich was unable to obtain sufficient evidence to conclude whether HUD substantially complied with FFMIA. 

In connection with the contract, we reviewed Sikich’s reports and related documentation and questioned its representatives.  Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express and we do not express opinions on HUD’s financial statements or conclusions about (1) the effectiveness of HUD’s internal control over financial reporting; (2) HUD’s compliance with laws, regulations, contracts,  and grant agreements or other matters; or (3) whether HUD’s financial management systems complied substantially with the three FFMIA requirements.  Sikich is responsible for the attached Independent Auditors’ Report, dated December 18, 2025, and the conclusions expressed therein.  Our review disclosed no instances in which Sikich did not comply, in all material respects, with U.S. generally accepted government auditing standards. 

HUD’s financial statements are included in HUD’s Agency Financial Report, which can be found at - https://www.hud.gov/sites/dfiles/CFO/documents/afr2025.pdf.