Stephen Begg has been serving as the acting inspector general for the U.S. Department of Housing and Urban Development (HUD) since January 24, 2023. His appointment followed the dismissal of Rae Oliver Davis, who held the position during President Donald Trump’s first term. This change came amidst a broader shake-up initiated by the White House that saw over a dozen inspectors general terminated shortly after the president began his second term.

Recent Testimonies and Office Achievements

In a recent hearing, Begg presented an overview of the initiatives undertaken by the HUD Office of Inspector General (OIG) and the results yielded thus far. He asserted that the office’s ongoing efforts are producing significant outcomes for HUD programs.

Financial Impact of OIG Audits

In the fiscal year 2024, the audits conducted by the OIG generated an impressive $86.7 million in collections. The office also identified nearly $1 billion that could be allocated more efficiently and raised concerns about $4.8 million in questioned costs.

Outcomes from Investigations

During the same period, OIG’s investigations led to recoveries and judgments exceeding $63 million, with more than $14 million directed back to HUD programs. Additionally, 125 administrative sanctions were enforced to curb the participation of individuals found to be violating program guidelines.

Non-Monetary Achievements of OIG Oversight

Beyond monetary recoveries, the OIG benefits from a broader impact assessment of its oversight activities. Begg reported that the office has facilitated:

• 278 actions leading to systemic improvements within HUD programs.
• 76 enhancements in guidance.
• 61 process improvements.
• 112 measures to increase program efficacy.
• 29 actions aimed at enhancing the accuracy of HUD reporting.

Addressing Outstanding Recommendations

As of the end of March, the HUD OIG had 699 outstanding recommendations pending action from HUD. Notably, 246 of these recommendations are projected to deliver a monetary impact exceeding $11.4 billion once addressed. Among these, 24 recommendations are flagged as priorities that could significantly influence the agency’s operations.

Key Challenges Identified

During his testimony, Begg outlined several critical challenges facing HUD, which include:

• Enhancing health and safety in HUD-assisted housing.
• Expanding access to affordable housing.
• Improving the management of HUD grants.
• Strengthening oversight in disaster recovery.
• Mitigating risks associated with fraud and improper payments.
• Enhancing technology and cybersecurity protocols.
• Boosting procurement effectiveness.

Progress and Future Directions

Despite challenges, Begg reported positive strides made in some areas, particularly in financial management, where HUD has shown improvement in financial reporting accuracy and compliance with relevant laws.

Call for Fraud Prevention Measures

During his oral remarks, Begg also shared insights from his discussion with HUD Secretary Scott Turner, who expressed commitment to strengthening anti-fraud measures and ensuring payment integrity. He emphasized the need for proactive fraud risk assessments across HUD programs to safeguard taxpayer funds effectively.