Salaries and Expenses, Office of Inspector General External audit time has not been provided for the following projects and programs which will be audited by independent public accountants (IPAs): --Local Housing Authorities, including combined LRH/UR Authorities, except those having 5,000 or more units. --Urban Renewal Projects except those having over $25 million in --All Planning Agencies other than States. --Neighborhood Facilities. --Public Facility Loans. Instructions covering the use of IPAs on the above programs have been issued. The quality of IPA audits is monitored as part of Departmentwide assistance efforts. The following number of audits have been undertaken by IPAs during FY 1973: It is expected that, prior to FY 1975, arrangements will have been made, with only minor exceptions, for all required audits under the five programs to be made by IPAs. These arrangements will substantially reduce the backlogs of external audit work (221 man-years as of June 30, 1973, and estimated to be 103 man-years as of June 30, 1974) and--together with placing the remaining interim external audits on a biennial cycle--should result in a manageable external audit workload with present staff resources by June 30, 1975. No change in the audit staff is being requested at this time pending the outcome of legislation affecting the Department's programs. It may be necessary to again assess audit staff requirements when the audit impact of legislation changes becomes known. The allocation of resources to external and internal audits is shown in the following tables: A detailed comparison of the three years is as follows: Salaries and Expenses, Office of Inspector General Salaries and Expenses, Office of Inspector General Schedule of Audits completed for 1973 and to be performed in FY 1974 and FY 1975 (Continued) * Includes A-87 audits, Operation Breakthrough, and pricing proposal evaluations and audits of cost type contracts for Technical Assistance and Research and Technology. ** Includes 6 man-years of effort for disaster relief activities. Salaries and Expenses, Office of Inspector General Schedule of Audits completed for 1973 and to be performed in FY 1974 and FY 1975 (Continued) 1975 vs. 1974 MAN-DAYS Each audit may consist of separate surveys and operational reviews and will be conducted in most instances concurrently at several locations as applicable (Central Office, Regional Office, Area Office, Insuring Office); consequently the number of audit reports issued will exceed the number of audits shown above. In FY 1973 we issued 68 internal audit reports and 17 survey memorandums. Direct time included in program categories involved. Salaries and Expenses, Office of Inspector General SAVINGS RESULTING FROM AUDITS During FY 1972 and FY 1973, external audit efforts have resulted in the following amounts of sustained findings and cash savings to the Department: Sustained findings are not reported until the office is advised in writing that program officials have concurred in the findings and have requested the grantee or borrower to make restitution or take corrective action. Cash savings are reported only after the receipt of evidence that HUD's costs have actually been reduced. The savings resulting from project audit findings have become available in past years for HUD use on other approved grant and loan projects under the programs involved. In addition to monetary savings, there are, of course, numerous procedural findings in both project and internal reports which are difficult to quantify, monetarily. |