October 28, 2003
HUD SETTLES PROPOSED DEBARMENT OF TEXAS CPA FIRM FOR
DEFICIENT AUDITING PROCEDURES
WASHINGTON - The Department of Housing and Urban Development today announced that it has settled a proposed debarment of the certified public accounting firm Mike Estes, P.C. of Fort Worth, Texas., and of its president Mike Estes.
"This settlement protects resources that are meant to benefit public housing residents," said HUD Assistant Secretary Michael Liu, who heads up the agency's Office of Public and Indian Housing. "The Department will continue to aggressively prosecute CPAs who conduct deficient audits involving HUD programs."
Under the settlement, Estes and the company has agreed to:
- Make an administrative payment of $50,000 to HUD.
- Have an independent accounting firm perform a review of eight audits over a two-year period.
- Place an additional $50,000 in escrow to cover costs of independent reviews of their work over the next two years. HUD will choose the independent reviewer and the audits to be reviewed.
- Reduce the number of public housing authority audits they perform over the next two years to only 30 per year.
The proposed debarments alleged that the firm failed to follow professional auditing standards in performing audits for housing authorities in: St. Charles Parish, City of Crowley, City of Gibsland, Town of Ferriday, and City of Houma, Louisiana, and Henderson and Monahans, Tex.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities, and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on in the Internet.