74% of Syria Chemical Materials Reported Destroyed

Posted on April 10, 2017April 10, 2017 by Denise Simon

Update:

According to that CW disarmament specialist, ОБАС-250-235П is one and only Sov/Rus aviation bomb to spread Sarin. That looks like filler cappic.twitter.com/1sSpNdHt0m and Associated Press is reporting:

Senior U.S. official says U.S. has concluded that Russia knew in advance of Syria’s chemical weapons attack last week – AP

So….

Who lied? Susan Rice? Yes, John Kerry? Yes, Barack Obama….especially yes. While John Kerry worked with Russia to eliminate the ‘declared’ chemical weapons in Syria…note below it refers to mustard gas. When Russia presented the document to the Obama administration, we signed it as well. So, the Assad regime, Putin, Iran and the Obama White House all have their feet in this swamp. Got that?

Also note the percentage of the CW inventory destroyed…hummm right?

DefenseOne

Release No: NR-052-14
January 27, 2014

M/V Cape Ray Deployment

Today the Department of Defense announced the deployment of M/V Cape Ray from Portsmouth, Va. M/V Cape Ray is the primary contribution of the Department of Defense toward international efforts to eliminate Syria’s chemical weapons material program. Over the last several months, hundreds of government and contract personnel have worked tirelessly to prepare the vessel to neutralize Syrian chemical materials and precursors using proven hydrolysis technology. This achievement could not have been possible without these remarkable contributions.

The United States remains committed to ensuring its neutralization of Syria’s chemical materials prioritizes the safety of people, protects the environment, follows verification procedures of the Organization for the Prohibition of Chemical Weapons (OPCW), and with applicable standards. All waste from the hydrolysis process on M/V Cape Ray will be safely and properly disposed of at commercial facilities to be determined by the OPCW. No hydrolysis byproducts will be released into the sea or air. M/V Cape Ray will comply with all applicable international laws, regulations, and treaties.

It is the responsibility of the Assad regime to transport the chemical materials safely to facilitate their removal for destruction. The international community is poised to meet the milestones set forth by the OPCW, including the June 30 target date for the total destruction of Syria’s chemical weapons materials. The United States joins the OPCW and the United Nations in calling on the Assad regime to intensify its efforts to ensure its international obligations and commitment are met so these materials may be removed from Syria as quickly and safely as possible.

Arms Control

Transfer of Syrian Chemicals to Cape Ray is Complete

A trailer operator for Medcenter Container Terminal transfers a container from the M/V Ark Futura, a Danish cargo ship, along the dock to the loading deck of M/V Cape Ray during operations at the Italian port of Gioia Tauro, July 2, 2014. The Cape Ray is tasked with the neutralization of specific chemical materials from Syria in accordance with the Organization for the Prohibition of Chemical Weapons guidelines while operating in international waters. U.S. Navy photo by Seaman Desmond Parks

WASHINGTON, July 3, 2014 — The transfer of Syrian chemicals from the Danish container ship Ark Futura to the Motor Vessel Cape Ray has been completed, Pentagon Press Secretary Navy Adm. John Kirby said in a statement issued yesterday.

After the transfer was made in the Italian port of Gioia Tauro, Kirby said in the statement, the Cape Ray departed yesterday for international waters in the Mediterranean Sea to emp loy its onboard system to neutralize the chemicals.

Kirby’s statement reads as follows:

The transfer of Syrian chemicals from the Danish container ship Ark Futura to the Motor Vessel Cape Ray is complete. Cape Ray departed the Italian port of Gioia Tauro this afternoon for international waters in the Mediterranean Sea, where neutralization operations will soon begin. The neutralization process should take several weeks to complete.

Secretary Hagel is grateful to Danish and Italian authorities for their support in this process and is enormously proud of everyone who helped make possible this safe and incident-free transfer. He extends a special thanks to the men and women of the Cape Ray, Naval Forces Europe, and U.S. European Command teams for their impeccable planning and execution.

***

WASHINGTON, Feb. 13, 2014 – The container ship M/V Cape Ray has arrived at Rota, Spain, for a port visit while en route to aid in removal of Syrian chemical materials, Pentagon spokesman Army Col. Steve Warren said.

The vessel — part of the Transportation Department Maritime Administration’s Ready Reserve Force program — left Portsmouth, Va., Jan. 27. Hundreds of government and contract personnel worked for several months to prepare the vessel to neutralize Syrian chemical materials and precursors using hydrolysis technology.

“When Syria has completed removal of its chemical materials, MV Cape Ray will depart Rota and proceed to the transloading port in Italy, where she will take the chemicals on board,” Warren said in a statement announcing the vessel’s arrival in Spain. “Our ship is prepared and our crew is trained to safely neutralize Syria’s chemical materials. We stand ready to fulfill our contributions to this international effort; it is time for Syria to live up to their obligations to the international community.”

By offering Rota for a port of call before MV Cape Ray receives a load of chemical materials and embarks on the destruction phase of its mission, Spain is making a contribution to the United Nations-sanctioned multinational effort to rid Syria of its chemical weapons materials, officials at the U.S. Embassy in Madrid said.

The United States plans to neutralize the chemicals at sea in international waters using proven hydrolysis technology, embassy officials added. All waste from the hydrolysis process aboard MV Cape Ray will be safely and properly stored on board until it is disposed of at commercial facilities to be determined by the Organization for the Prohibition of Chemical Weapons, they added, emphasizing that no hydrolysis byproducts will be released into the sea or air.

Defense Secretary Chuck Hagel sent a message to the Cape Ray’s crew, wishing them well as they left Portsmouth.

“As you all know, your task will not be easy,” Hagel wrote. “Your days will be long and rigorous. But your hard work, preparation and dedication will make the difference.

“You are ready,” the secretary continued. “We all have complete confidence in each of you. You represent the best of our nation, not only because of your expertise and commitment, but because of your willingness to serve when called upon. For that, we will always be grateful. We are also grateful to your families for the love and support they have given you. On behalf of our country and the American people, I wish you much success. Take care of yourselves. God bless you all.”

***

WASHINGTON, Aug. 11, 2014 – Specialists on the U.S. container ship M/V Cape Ray continue their work in the Mediterranean Sea, neutralizing chemical materials from Syria and contributing to what the Organisation for the Prohibition of Chemical Weapons, or OPCW, on August 7 confirmed as the destruction of 74.2 percent of Syria’s chemical stockpile.

The Spanish patrol boat Infanta Elena (P-76), left, escorts the container ship MV Cape Ray (T-AKR 9679) through the Strait of Gibraltar en route to the Mediterranean Sea June 26, 2014. U.S. Navy photo by Mass Communication Specialist Seaman Desmond Parks
(Click photo for screen-resolution image);high-resolution image available.

U.S. military and civilian specialists aboard the ship began using the field deployable hydrolysis system to neutralize Syrian chemical materials on July 7, Director of Pentagon Press Operations Army Col. Steve Warren told reporters at the time, anticipating that it would take about 60 days to complete the job.

On August 5 at the Aberdeen Proving Ground-Edgewood Team CBRNE capabilities showcase, Adam Baker, a chemical engineer and project manager with the U.S. Army Edgewood Chemical Biological Center, detailed the hard work that went into turning a land-based hydrolysis system into a field-deployable system in just five months.

“We had a gap in capabilities for a system that was transportable, that could be operated out of a remote location and that would [process] bulk liquid agent at high throughputs.”

The system had to be able to be transported to a remote site and set up and be sufficient with a supply of reagents and diesel fuel, Baker explained.

The project was given the go-ahead in February 2013. In November 2013, he said, “That’s when they made the decision to start putting it on the Cape Ray.”

The timeline was short, Baker said, and they couldn’t start from scratch with a new system, so they used a process from the former Aberdeen Chemical Demilitarization Facility, or ABCDF, that had been used a decade ago to neutralize 1,700 tons of mustard – part of the destruction of the United States’ own chemical stockpile.

Baker said the engineers compressed that process into transportable, standardized shipping containers. They had two titanium reactors they could use for the Cape Ray that made it easier for rapid deployment of the two systems that are now on the ship.

One of the Cape Ray’s most critical design factors for the system, Baker said, “was that everything we needed had to go on that ship. Instead of having trucks come in every day and bring the reagent and trucks go out every day with your waste, all of those containers had to go on the ship.”

At least 269 of the standardized shipping containers are on the ship, holding everything the specialists and crew need and everything the hydrolysis process needs and then creates. Nothing is dumped from the ship. More here.

Pyotr Levashov Arrested in Barcelona, Hacker

Posted on April 9, 2017April 9, 2017 by Denise Simon

All domestic news media has been blaming the Russians for cyber election intrusion. Conservative outlets have pushed back asking for evidence. There are investigations on The Hill regarding Russian interference and the House Intelligence Committee, chaired by Devin Nunes has seen the documents and share them with the White House. The committee co-chair Adam Schiff was angry he was not read on early enough. A big political conflict has occurred and Nunes recused himself from the specific committee investigation regarding Russia as Nunes remains chairman of the committee.

Okay so what you ask?

Well we want to blame the FBI, Comey and ODNI, Clapper for not being more forthcoming on the matter. Slow down everyone, as cyber investigations are international in scope and it takes a mobilized set of experts and agencies and international collaboration to make attribution by using exceptional tools, cyber talent and agreements. So….what does all this mean? It means the lid could soon blow off this whole operation.

You see, there was malware, phishing and countless botnet systems that were part of the U.S. election interference as we saw with the DNC hack and the John Podesta emails via WikiLeaks. There are countless moving parts and they are international. It is gratifying to know however, not only is government part of the investigation, but outside cyber corporations are doing their own due diligence and offering additional clues, evidence and assistance to the FBI. How so you ask?

From Krebs on Security: Then, on Jan. 26. 2012, I ran a story featuring a trail of evidence suggesting a possible identity of “Severa“ (a.k.a. “Peter Severa”), another SpamIt affiliate who is widely considered the author of the Waledac botnet (and likely the Storm Worm). In that story, I included several screen shots of Severa chatting on Spamdot.biz, an extremely secretive Russian forum dedicated to those involved in the spam business. In one of the screen shots, Severa laments the arrest of Alan Ralsky, a convicted American spam kingpin who specialized in stock spam and who — according to the U.S. Justice Department – was partnered with Severa. Anti-spam activists at Spamhaus.org maintain that Peter Severa’s real name is Peter Levashov (although the evidence I gathered also turned up another name, Viktor Sergeevich Ivashov). Read more here, it is fascinating and well done.

*** No wonder attribution takes a very long time right? Yes so read on please…..

Programmer Pyotr Levashov reportedly suspected in US election hacking arrested

Madrid: A Russian computer programmer, Pyotr Levashov, has been arrested in the Spanish city of Barcelona, a spokesman for the Russian embassy in Madrid said on Sunday.

It was unclear why Levashov was arrested. The embassy spokesman declined to give details for his arrest, and Spanish police and the interior ministry were not available for comment on Sunday.

Russian television station RT reported that Levashov was arrested under a US international arrest warrant and was suspected of being involved in hacking attacks linked to alleged interference in last year’s US election.

Peter Carr, a spokesman for the US Justice Department’s criminal division, said: “The US case remains under seal, so we have no information to provide at this time.”

The criminal division is separate from the national security division, which is responsible for investigating state-sponsored cyber crimes.

A US Department of Justice official said it was a criminal matter without an apparent national security connection.

Spanish authorities notified the Russian embassy of Levashov’s arrest on Friday, the embassy spokesman said.

In January, Spanish police arrested another Russian computer programmer, whose name was given as “Lisov” and who was wanted by the United States for leading a financial fraud network.

Russia’s embassy in Madrid. Photo: Wikimedia/Luis García (Zaqarbal)

The US government has formally accused Russia of hacking Democratic Party emails to help the campaign of Republican President Donald Trump. The US Congress is also examining links between Russia and Trump during the election campaign.

Russian officials, including President Vladimir Putin, have repeatedly denied that Russia tried to influence the election.

Reuters

January 2017: Spain has arrested a 32-year-old Russian computer programmer at Barcelona airport who is alleged to have designed and used software to steal bank account details from banks and individuals, Spanish police said on Friday.

Working with the U.S. Federal Bureau of Investigation (FBI), the man, named Lisov, was arrested by Spanish police on Jan. 13 as he waited to take a flight to another European country. He is suspected of leading a financial fraud network, the police said in a statement.

Lisov, wanted by the United States under an international arrest warrant, had been under observation by authorities for several days in the north-eastern region of Catalonia, police said. Police did not give the man’s first name. More here.

Tip sheet on above:

ALEXSEY BELAN

Conspiring to Commit Computer Fraud and Abuse; Accessing a Computer Without Authorization for the Purpose of Commercial Advantage and Private Financial Gain; Damaging a Computer Through the Transmission of Code and Commands; Economic Espionage; Theft of Trade Secrets; Access Device Fraud; Aggravated Identity Theft; Wire Fraud

Seems we need to be more patient when it comes to the FBI and associated international agencies…eh?

Will Trump Grant this Request by the House Oversight Committee?

Posted on April 7, 2017April 7, 2017 by Denise Simon

Chaffetz leads renewed call for Trump to fire IRS chief

House Oversight Committee Chairman Jason Chaffetz leads renewed call for Trump to fire IRS chief Romney exploring 2018 Senate run: report Secret Service strained by protection of Trump family: report MORE (R-Utah) and nearly 40 other Republican lawmakers on Thursday called for President Trump to fire IRS Commissioner John Koskinen.

The letter, the second this week from House Republicans on the topic, argues that firing Koskinen, whose term ends in November, would be in line with Trump’s comments in his inauguration speech that it is important for the government to be controlled by the public.

“So long as the IRS commissioner is a man who has misled the people, destroyed evidence, and failed his legal duties to the people’s representatives in Congress, the IRS is not ‘controlled by the people,'” the GOP lawmakers wrote. “For that reason, we request you immediately remove Koskinen.” More here from The Hill.

*** There could be that pesky pending problem: Trump and Koskinen also have a personal relationship that goes back to the 1970s in New York City. Koskinen was involved in helping arrange the sale of the Commodore Hotel in Manhattan to Trump, a deal that helped launch Trump’s lucrative business career, according to a May 5, 1976, article in The New York Times.

Unit 450, The Syrian Chemical Weapons Program Details

Posted on April 7, 2017April 7, 2017 by Denise Simon

If you still think the chemical weapons attack was fake news, read on. Further, it must be stated that the Pentagon and CIA have extraordinary skills and ability to gather quality intelligence, intelligence that was gained under the Obama administration and did not stop the program but rather deferred it to Russia to handle. This was done under threat by Tehran to the Obama White House to leave Assad alone during the JPOA, the Iran nuclear talks. Obama complied.

For Secretary of State Rex Tillerson and for U.S. Ambassador Nikki Haley to lay the blame at the feet of Russia and Iran for the Assad/Syria chemical weapons program was exact and right.

Further in 2013, a Syrian army defector gave testimony to Western officials and the United Nations on the Unit 450 operations.

Bassem Al-Hassan, the head of the Syrian clandestine unit for special assignments, was appointed the position after Muhammad Suleiman, another key aide to Assad, was assassinated in his home in August 2008, Western intelligence sources told Fox News.

The close aide to Assad had been on the U.S. radar, and is one of the individuals named on the Office of Foreign Assets Control Specially Designated Nationals and Blocked Persons List (SDN). The list names individuals and companies who pose as a national security threat to the U.S.

Hassan is also considered a very close friend and contact to Qassem Soleimani, the Iranian Revolutionary Guard general, and has connections with Russian officials.

Western intelligence sources said Hassan was the head of Unit 450, Syria’s chemical weapons unit, and was responsible for any activities, including producing and ordering the weapons for the department.

Syria agreed in 2013 to destroy its stockpiles of chemical weapons as part of a deal brokered between former President Barack Obama and Russian President Vladimir Putin. A year later, then-Secretary of State John Kerry said that Syria’s chemical weapons were “100 percent” destroyed.

The statement came into question on Tuesday when a chemical weapons attack in an opposition-held town in northern Syria killed more than 80 people, including at least 30 children. The U.S. blamed Assad for the attack.

President Trump on Friday authorized to launch 60 U.S. Tomahawk missiles on the Shayrat air base, southeast of Homs, in retaliation to the chemical weapons attack. The Pentagon said the airstrikes will not eliminate the country’s chemical weapons supply completely, but reduce the government’s ability to deliver them.

Elite Syrian Unit 450 Scatters Chemical Arms Stockpile

Assad Regime Has Moved Weapons to as Many as 50 Sites

2013: A secretive Syrian military unit at the center of the Assad regime’s chemical weapons program has been moving stocks of poison gases and munitions to as many as 50 sites to make them harder for the U.S. to track, according to American and Middle Eastern officials.

The movements of chemical weapons by Syria’s elite Unit 450 could complicate any U.S. bombing campaign in Syria over its alleged chemical attacks, officials said. It also raises questions about implementation of a Russian proposal that calls for the regime to surrender control of its stockpile, they said.

U.S. and Israeli intelligence agencies still believe they know where most of the Syrian regime’s chemical weapons are located, but with less confidence than six months ago, U.S. officials said.

Secretary of State John Kerry met Thursday in Geneva with his Russian counterpart to discuss aÂ road map for ending the weapons program. The challenges are immense, Mr. Kerry said.

The U.S. alleges a chemical-weapons attack by the Syrian government on Aug. 21 killed more than 1,400 people, including at least 400 children. Syrian President Bashar al-Assad on Thursday again denied any involvement in a chemical attack, but he said his government was prepared to sign an agreement banning the use of chemical weapons. Syrian officials couldn’t immediately be reached for comment on the weapons.

Unit 450 – a branch of the Syrian Scientific Studies and Research Center that manages the regime’s overall chemicals weapons program – has been moving the stocks around for months, officials and lawmakers briefed on the intelligence said.

Movements occurred as recently as last week, the officials said, after Mr. Obama said he was preparing to launch strikes.

A man affected by what activists say was nerve gas received assistance in the Damascus suburbs last month.

The unit is in charge of mixing and deploying chemical munitions, and it provides security at chemical sites, according to U.S. and European intelligence agencies. It is composed of officers from Mr. Assad’s Alawite sect. One diplomat briefed on the unit said it was Alawite from “janitor to commander.”

U.S. military officials have looked into the possibility of gaining influence over members of Unit 450 through inducements or threats. “In a perfect world, you would actually like to co-opt that unit. Who cares who pays them as long as they sit on the chemical weapons,” said a senior U.S. military official.

Although the option remains on the table, government experts say the unit is so close-knit that they doubt any member could break ranks without being exposed and killed.

The U.S. estimates the regime has 1,000 metric tons of chemical and biological agents. “That is what we know about. There might be more,” said one senior U.S. official.

The regime traditionally kept most of its chemical and biological weapons at a few large sites in western Syria, U.S. officials said. But beginning about a year ago, the Syrians started dispersing the arsenal to nearly two dozen major sites.

Unit 450 also started using dozens of smaller sites. The U.S. now believes Mr. Assad’s chemical arsenal has been scattered to as many as 50 locations in the west, north and south, as well as new sites in the east, officials said.

The U.S. is using satellites to track vehicles employed by Unit 450 to disperse the chemical-weapons stocks. But the imagery doesn’t always show what is being put on the trucks. “We know a lot less than we did six months ago about where the chemical weapons are,” one official said.

The movements, activities and base locations of Unit 450 are so sensitive that the U.S. won’t share information with even trusted allies in the opposition for fear the unit would be overrun by rebels, said current and former U.S. officials.

The U.S. wants any military strikes in Syria to send a message to the heads of Unit 450 that there is a steep price for following orders to use chemical weapons, U.S. officials said.

At the same time, the U.S. doesn’t want any strike to destabilize the unit so much that it loses control of its chemical weapons, giving rebels a chance to seize the arsenal.

“Attacking Unit 450, assuming we have any idea where they actually are, would be a pretty tricky affair because”¦if you attack them you may reduce the security of their weapons, which is something we certainly don’t want,” said Jeffrey White, a veteran of the Defense Intelligence Agency and a defense fellow at The Washington Institute.

Within Syria, little is known about Unit 450 or the Syrian Scientific Studies and Research Center. One of the buildings is in a sprawling complex on the outskirts of Damascus.

Even high-ranking defectors from the Syrian military that form the core of the rebel insurgency – including those who served in units trained to handle chemical attacks – said they hadn’t heard of Unit 450.

The Pentagon has prepared multiple target lists for possible strikes, some of which include commanders of Unit 450.

But a senior U.S. official said no decision has been made to target them, reflecting the challenge of sending a message to Unit 450 without destabilizing it.

In some respects, officials said, the hands-on role that Unit 450 plays in safeguarding the regime’s chemical weapons secrets makes it too valuable for the U.S. to eliminate, even though the U.S. believes the unit is directly responsible for the alleged chemical weapons abuses.

The Syrian Scientific Studies and Research Center answers only to Mr. Assad and the most senior members of his clan, according to U.S. and European officials. Attack orders are forwarded to a commanding officer within Unit 450.

If the Russians clinch a deal for Mr. Assad to give up his chemical weapons, any prospective United Nations-led force to protect inspectors and secure storage sites would likely need to work closely with Unit 450 and the research center, current and former administration officials said.

Gen. Martin Dempsey, the chairman of the U.S. military’s Joint Chiefs of Staff, has said that President Barack Obama directed him to plan for “a militarily significant strike” that would deter the Assad regime’s further use of chemical weapons and degrade the regime’s military capability to employ chemical weapons in the future.

But officials said the U.S. doesn’t plan to bomb chemical weapons sites directly because of concerns any attack would disperse poison agents and put civilians at risk.

In addition to satellites, the U.S. also relies on Israeli spies for on-the-ground intelligence about the unit, according to U.S. and Israeli officials.

Though small in size, Unit 450 controls a vast infrastructure that makes it easier for the U.S. and Israel to track its movements. Chemical weapons storage depots are guarded by the unit within larger compounds to provide multiple layers of security, U.S. officials said.

Whenever chemical munitions are deployed in the field, Unit 450 has to pre-deploy heavy equipment to chemical mixing areas, which the U.S. and Israel can track.

IG Report: Improper Accounting at HUD, $516 Billion

Posted on April 6, 2017April 6, 2017 by Denise Simon

What We Found Full 126 page Inspector General Report is here.

Image result for julian castro hud

Of note, Speaker Boehner hired a law, Jonathan Turley to represent the House in a lawsuit, where Treasury under Barack Obama was ordered to take monies from other agencies to fund Obamacare and pay insurers. That lawsuit case is found here. Where is the case now? In May 2016, Collyer ruled that the payments were illegal. The case is already on appeal to the D.C. Circuit and will probably be argued in early 2017.

Meanwhile, how about fraud at HUD, where Julian Castro was Secretary? Julian is a radical and a LaRaza advocate. Further, Politico reported that Julian Castro’s name was floated early as a Hillary running mate.

Image result for julian castro hillary clinton Back to the half a trillion dollars….

The total amounts 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) the Office of General Counsel’s refusal to sign 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.

What We Recommend

In addition to recommendations made in audit reports 2017-FO-0001, 2017-FO-0002, and 2017-

FO-0003, we recommend that HUD (1) reassess its current consolidated financial statement and

notes review process to ensure that sufficient internal controls are in place to prevent and detect

errors, (2) evaluate the current content of HUD’s consolidated note disclosures to ensure

compliance with regulations and GAAP, and (3) develop a plan to ensure that restatements are

properly reflected in all notes impacted.

On November 15, 2016, we issued an independent auditor’s report1 stating that the U.S.

Department of Housing and Urban Development (HUD) was unable to provide final fiscal years

2016 and 2015 consolidated financial statements and accompanying notes in a timeframe that

would allow us to obtain sufficient, appropriate evidence to determine whether they were free

from material misstatement. We also reported on the delays encountered in the material

weakness, Weak Internal Controls Over Financial Reporting Led to Errors and Delays in the

Preparation of Financial Statements and Notes.2

The delays were due to insufficiently designed and implemented financial reporting processes

and internal controls that were put into place because of HUD’s transition of its core financial

system to a Federal shared service provider (FSSP). HUD inadequately planned and tested the

changes to HUD’s financial reporting process before the transition. Additionally, late

restatements performed by HUD’s component entities, the Government National Mortgage

Association (Ginnie Mae) and Federal Housing Administration (FHA), contributed to the delay

in providing final consolidated financial statements.3 As a result, we were unable to provide an

opinion on HUD’s fiscal years 2016 and 2015 financial statements. While there were other

material matters that supported our basis for disclaimer, this was the primary reason for our

disclaimer of opinion.