FY 2013 ANNUAL ASSURANCE STATEMENT
The Department of Housing and Urban Development's management is responsible for establishing and maintaining effective internal control and financial management systems that meet the objectives of the Federal Manager's Financial Integrity Act (FMFIA). HUD is able to provide a qualified assurance of its internal controls over the effectiveness and efficiency of operations as of September 30, 2013, with the exception of three material weaknesses (one for Section 2 and two for Section 4) in the areas of Human Capital Management, Federal Financial Management Improvement Act (FFMIA), and Federal Information Security Management Act (FISMA) noncompliance.
Additionally, HUD conducted its assessment of the effectiveness of internal control over financial reporting in accordance with Appendix A of OMB Circular A-123. The Department provides a qualified assurance that its internal controls over financial reporting were operating effectively as of September 30, 2013, with the exceptions of the three material weaknesses — presentation of Balance Sheet Accounts, implementation of Cash Management Requirements, and the utilization of the First-in, First-out (FIFO) method of accounting. Other than the noted exceptions, the internal controls were operating effectively, and no other material weaknesses were found in the design or operation of the internal control over financial reporting.
In accordance with guidance established by the American Recovery and Reinvestment Act of 2009 (Recovery Act), HUD can provide reasonable assurance that all Recovery Act programs were managed effectively and efficiently, utilized reliable and accurate data to report achievement of program goals, and were in compliance with applicable laws and regulations. All HUD Recovery Act funds were awarded and distributed in a prompt, fair, and reasonable manner for the sole purpose designated in the Recovery Act.
The Department of Housing and Urban Development can provide reasonable assurance that appropriate policies and controls are in place to mitigate the risk of fraud and inappropriate charge card practices.
The Disaster Relief Appropriations Act (Sandy Funds) of 2013 provided the Department with $16 billion to assist in the Hurricane Sandy recovery. Appropriate policies and controls are in place to mitigate the risk of fraud and inappropriate spending practices and ensure that Sandy Funds are used for their intended purpose.
Shaun Donovan December 16, 2013