Alabama Audit Reports

Information by State  Print version

Issue Date: September 30, 2010
Audit Report No.: 2010-AO-1007
File Size: 63KB

Title: The State of Alabama, Montgomery, AL, Generally Ensured Mobile Administered Its Hurricane Katrina Community Development Block Grant Disaster Funds Program in Accordance With HUD Requirements

We audited the State of Alabama, Department of Economic and Community Affairs' (State), Hurricane Katrina Community Development Block Grant Disaster Funds program (program), administered by the State's subrecipient, Mobile County Commission (Mobile). Our objective was to determine whether the State and Mobile administered the program in accordance with the requirements of the State's grant agreements (agreements). We initiated the audit as part of the Office of Inspector General Gulf Coast Region's audit plan and examination of activities related to Gulf Coast hurricane disaster relief efforts.

We found that in general, Mobile, as the State's subrecipient, met the requirements of its agreements when it usually ensured that program disbursements (1) were adequately supported and expended for only eligible expenses and (2) were not used for the same purpose as financial assistance provided by other sources.

Since the State ensured that Mobile properly administered its program in accordance with the requirements of its grant agreements, we did not recommend corrective action.

Issue Date: September 30, 2010
Audit Report No.: 2010-AO-1006
File Size: 63KB

Title: The State of Alabama, Montgomery, AL, Generally Ensured That the City of Bayou La Batre Properly Administered Its Hurricane Katrina Community Development Block Grant Disaster Funds Program

We audited the State of Alabama, Department of Economic and Community Affairs' (State), Hurricane Katrina Community Development Block Grant Disaster Funds program (program), administered by the State's subrecipient, the City of Bayou La Batre (Bayou La Batre). Our objective was to determine whether the State and Bayou La Batre administered the program in accordance with the requirements of their grant agreements. We initiated the audit as part of the Office of Inspector General Gulf Coast Region's audit plan and examination of activities related to Gulf Coast hurricane disaster relief efforts.

What we found in general, the State and Bayou La Batre properly administered the program by adequately documenting the housing applicants' use of financial assistance provided by other sources, ensuring that housing applicants did not receive a duplicate benefit. The State also ensured that Bayou La Batre adequately supported and expended program funds only for eligible costs.

Since the State ensured that Bayou La Batre properly administered its program in accordance with the requirements of its grant agreements, we did not recommend corrective action.

Title: Mobile Housing Board, Mobile, AL, Used HOME Investment Partnerships Program Funds for Ineligible and Unsupported Costs for Its HOPE VI Redevelopment

HUD OIG performed an audit of the Mobile Housing Board, which serves as both the public housing agency and the administering agency for the City of Mobile, AL's HOME Investment Partnerships Program(HOME) and Community Development Block Grant (CDBG) program. We performed the audit based on a request from the Assistant Secretary, Community Planning and Development. The Assistant Secretary, along with the Director of the Office of Affordable Housing, expressed substantial concerns regarding the eligibility of the HOME and CDBG funds expended on the Housing Board's HOPE VI project, as well as the Housing Board's administration of the HOME and CDBG programs related to its public housing HOPE VI project, given the Housing Board's dual role as administrator of the programs and the public housing authority. The purpose of the audit was to determine whether the City adequately monitored the Housing Board and whether the Housing Board's controls and procedures to separate its public housing agency operations from its administration of HOME and CDBG programs were effective in preventing and detecting ineligible and unsupported costs in its HOPE VI redevelopment.

The City of Mobile did not perform annual monitoring of the Housing Board to ensure that its HOME funds were used in accordance with all program requirements. Cost allocation plans were not developed by the Housing Board to properly allocate or prorate its HOME program costs for phases III and IV. The Housing Board arbitrarily charged more than $1 million to phases III and IV. As a result, the Housing Board disbursed $839,713 in unsupported costs on both phases. The Housing Board used $339,657 of its HOME funds to pay for ineligible costs in all four phases of its HOPE VI redevelopment project. As a result, $339,657 in HOME funds was not used as intended under the HOME program.

OIG recommended that the Director for Community Planning and Development ensure that the City of Mobile establishes and maintains a subrecipient agreement with the Housing Board pursuant to HUD requirements; develops procedures to monitor the Housing Board at least annually; and reallocates the excessive $1.9 million in HOME and CDBG funds to other eligible activities and program recipients. OIG also recommended that the Director for Community Planning and Development require the Housing Board to support the $839,713 in HOME funds it charged to phases III and IV with either a cost allocation or proration plan, repaying any amount that cannot be supported; lower the sales prices of the HOME units in phase I to within HUD requirements and ensure that they are occupied by qualified low-income persons in a timely manner or repay the $156,004 in ineligible HOME funds; and recapture the $183,653 in HOME funds used to pay for ineligible costs for phases II, III, and IV of the HOPE VI redevelopment.

Archived Audit Reports