Dr. Ben Carson, retired pediatric neurosurgeon, and Secretary of Housing and Urban Development (HUD) has found half a trillion dollars in errors at HUD.
Dr. Carson was confirmed as HUD secretary earlier this spring amidst controversy. Even Elizabeth Warren, contentious Democratic Senator and faux Indian eventually voted for Dr. Carson. She voted for Carson even after calling the neurosurgeon inexperienced and unqualified.
From Warren’s Facebook account:
“Yes, I have serious, deep, profound concerns about Dr. Carson’s inexperience to lead the Department of Housing and Urban Development.”
It was widely reported last week that Dr. Carson found billions in dollars in errors at HUD during an audit.
See full HUD report here.
HUD reported during a recent audit there were serious errors with both 2015 and 2016 accounting practices.
The total amount of errors corrected in HUD’s notes and consolidated financial statements were $516.4 billion and $3.4 billion, respectively. There were several other unresolved audit matters, which restricted our ability to obtain sufficient, appropriate evidence to express an opinion.These unresolved audit matters relate to (1) OGC’s declination of signing the management representation letter; (2) HUD’s improper use of cumulative and first-in, first-out budgetary accounting methods of disbursing community planning and development program funds; (3) the $4.2 billion in nonpooled loan assets from Ginnie Mae’s stand-alone financial statements that we could not audit due to inadequate support; (4) the improper accounting for certain HUD assets and liabilities; and (5) material differences between HUD’s subledger and general ledger accounts. This audit report contains 11 material weaknesses, 7 significant deficiencies, and 5 instances of noncompliance with applicable laws and regulations. These were due to an inability to establish a compliant control environment, implement adequate financial accounting systems, retain key financial staff, and identify appropriate accounting principles and policies.
There were several reasons for the inconsistencies.
In a nutshell, the various entities and financing entities working within HUD do not know what they are doing. Since the government generated the errors and not an individual American, the incredible incompetencies are ignored.
Had you or I made similar “mistakes” we would be in jail in a cell next to Martha Stewart.
But I digress.
Liberals call the story false.
Partisan “fact checker” Snopes gives the story a “mostly false” rating. Is the story mostly false because the information presented by HUD was incorrect? No. Snopes calls the story mostly false basically because Carson was not in charge when the audit started.
This part is true.
The report came out March 1, and Dr. Carson was confirmed on March 2nd as the 17th Secretary of HUD.
And the “good news” is that the errors, while huge, “only” resulted in a net adjustment of “3 million” dollars and resulted in “no changes in HUD’s financial position or impact to [HUD] programs.”
While I disagree that a “net adjustment of only 3 million” is not significant, and the accounting “errors” are terrifying, there are bigger questions.
The main question is, will Dr. Carson handle the situation like a politician or conversely, like a rationale, thinking human? Something government officials have been lacking for some time and one of the reasons Trump was elected.
The average citizen is fed up with “only 3 million dollars have gone missing so this is a good thing” mentality. Every American has to steward his or her resources, our government demands it and taxes every cent we earn. How is it we can not expect the same from them?
The report was initiated and completed prior to Dr. Carson assuming the role, this is true. How he will handle it is the important thing.
Should we be able to hold large government programs accountable, and if so, what should happen when they fail?
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