In 2013, 22 of 24 CFO Act agencies received unqualified (unmodified) audit opinions. The Comptroller General disclaimed an opinion on one agency, and one agency received a qualified opinion. The one agency receiving a qualified opinion was HUD (Housing and Urban Development). Go to the HUD Web site (www.hud.gov) and find its PAR, which can be used to answer the following.
Required
a. Briefly identify the HUD financial situation by answering the following questions.
(1) What portion of HUD's assets is composed of cash (i.e., fund balance with treasury)?
(2) What was the increase or decrease in HUD's net position for the period examined?
b. Who conducted the HUD audit? What audit standards did the auditor apply? In your opinion, what, if any, independence issues would need to be addressed?
c. Why did HUD receive a qualified opinion in FY 2013? Since FY 2013, has HUD received an unqualified (unmodified) opinion or are there ongoing problems?