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Issue
Date: November 24, 2010
Audit Memorandum
No.: 2011-AT-1801
File Size: 150KB
Title:
The City of Columbus, GA, Demonstrated the Capacity to Obligate
Its NSP-1 Funds
The
U.S. Department of Housing and Urban Development's (HUD) Office
of Inspector General conducted a review of the City of Columbus,
GA's (City) Neighborhood Stabilization Program (NSP1) to determine
whether the City had demonstrated the capacity to properly obligate
all NSP1 grant funds and at least 25 percent of the grant toward
occupants with incomes below 50 percent of the median income in
the locality (LH25) set-aside by the September 5, 2010, statutory
deadline. We reviewed 100 percent of the City's obligations toward
its $3.1 million NSP1 grant and performed detailed testing of the
procurements for its obligations toward the LH25. The City demonstrated
the capacity to properly obligate its entire $3.1 million NSP1 grant
by the September 5, 2010, statutory deadline. This capacity was
evidenced by the City's substantial progress in committing its grant
funds during our review. However, we identified two concerns regarding
internal controls and entering obligations before contracts were
fully executed.
The City obligated $219,767 in acquisition, rehabilitation, and
downpayment assistance costs for two properties that were improperly
classified as LH25 set-asides. The properties were sold to individuals
whose income exceeded the LH25 income requirements. We discussed
this matter with the City during the review, and it reclassified
the invalid LH25 obligations.
The City could not locate the procurement records for the lead-based
paint contract it awarded. It obligated and paid $29,612 for lead-based
paint abatement services provided by a contractor that was under
contract with the City. We discussed this matter with the City,
and it agreed to locate and provide these documents to HUD's Office
of Community Planning and Development for review.
The City did not maintain up-to-date NSP-1 quarterly performance
reports on its Web site. It had not posted its March 31, 2010, and
June 30, 2010, quarterly performance reports on its Web site. We
discussed this matter with the City and, it posted the missing quarterly
reports on its Web site.
Overall,
the City's actions taken or planned regarding the issues indicated
its willingness to make necessary improvements.
Issue
Date: November 22, 2010
Audit Report
No.: 2011-AT-1002
File Size: 881KB
Title:
The East Point Housing Authority Made Excessive Housing Assistance
Payments for a Zero-Income Tenant and Its Units Did Not Meet Housing
Quality Standards
HUD
OIG performed an audit of the East Point Housing Authority (Authority)
Housing Choice Voucher program. We selected the Authority due to
the lack of onsite monitoring performed by the Office of Public
Housing, Georgia State Office, over the past 10 years and the fact
that the number of program tenants had more than doubled over the
past few years. The purpose of the audit was to determine (1) whether
the Authority established procedures to ensure that tenants were
eligible for rental subsidies and that the amount of their subsidy
calculation was properly supported and (2) whether its units met
the U.S. Department of Housing and Urban Development's (HUD) housing
quality standards.
The
Authority generally computed accurate housing assistance payments.
However, it made excessive housing assistance payments of $38,447
on behalf of a zero-income tenant who underreported her income and
did not provide proof of financial assistance. Also, the Authority's
physical inspection process was not effective. The inspections did
not accurately identify the deficiencies. Also, the quality control
inspections were not performed on a timely basis, and the results
were not communicated to the inspector.
OIG
recommended that the Director of HUD's Atlanta Office of Public
Housing require the Authority to reimburse the Housing Choice Voucher
program the $38,447 that was paid in ineligible housing assistance,
implement its policies and procedures to ensure that its program
operates in compliance with HUD's requirements, reinspect the units
and ensure that all deficiencies identified have been corrected,
evaluate the inspector's workload and make the necessary adjustments
to ensure that housing quality standards deficiencies are properly
identified and corrected, implement its policy and ensure that all
quality control reviews are performed within the 3-month timeframe,
and establish and implement procedures to ensure that its quality
control review deficiencies are communicated to the inspector.
Issue Date: September 29, 2010
Audit Memorandum
No.: 2010-NY-1808
File Size: 23KB
Title: Pine State Mortgage Corporation, Atlanta, GA, Did Not Properly
Underwrite a Selection of FHA Loans
We conducted a review of 20 Federal Housing Administration (FHA)
loans underwritten by Pine State Mortgage Corporation (Pine State),
an FHA direct endorsement lender. This review was conducted as part
of our "Operation Watchdog" initiative to review the underwriting
of 15 direct endorsement lenders at the suggestion of the FHA Commissioner.
The Commissioner expressed concern regarding the increasing claim
rates against the FHA insurance fund for failed loans. The objective
of the review was to determine whether the underwriting for the
20 loans complied with U.S. Department of Housing and Urban Development
(HUD)/FHA requirements. Pine State officials did not underwrite
14 of 20 loans reviewed in accordance with HUD/FHA regulations.
As a result, the FHA insurance fund suffered actual losses of $1,030,786
on 13 loans and a potential loss of $64,416 on one loan for a total
of $1,095,202.
We recommend that HUD's Associate General Counsel for Program Enforcement
determine legal sufficiency and if legally sufficient, pursue remedies
under the Program Fraud Civil Remedies Act (31 U.S.C Section 3801-3812)
and/or, Civil Money Penalties (24 C.F.R. Part 30.35) against Pine
State and/or its principals for incorrectly certifying to the integrity
of the data or that due diligence was exercised during the underwriting
of 14 loans that resulted in actual losses of $1,030,786 on 13 loans
and a potential loss of $64,416 on one loan, which could result
in affirmative civil enforcement action of approximately $2,295,404.
We also recommend that HUD's Deputy Assistant Secretary for Single
Family take appropriate administrative action against Pine State
and/or its principals for the material underwriting deficiencies
cited in this report once the affirmative civil enforcement action
is completed.
Issue
Date: September 24, 2010
Audit Memorandum
No.: 2010-AT-1806
File Size: 107.46KB
Title:
The City of Augusta, GA, Demonstrated the Capacity To Obligate Its
NSP1 Fund
The
U.S. Department of Housing and Urban Development's (HUD) Office
of Inspector General conducted a review of the City of Augusta,
GA's (City) Neighborhood Stabilization Program (NSP1) to determine
whether the City had demonstrated the capacity to properly obligate
all NSP1 grant funds and at least 25 percent of the grant toward
occupants with incomes below 50 percent of the median income in
the locality (LH25) set-aside by the September 5, 2010, statutory
deadline. We reviewed 100 percent of the City's obligations toward
its $2.4 million NSP1 grant and performed detailed testing of the
procurements for its obligations toward the LH25.
The
City demonstrated the capacity to properly obligate its entire $2.4
million NSP1 grant by the September 5, 2010, statutory deadline.
This capacity was evidenced by the City's substantial progress in
committing its grant funds during our review.
However,
we identified two concerns regarding internal controls and entering
obligations before contracts were fully executed.
The City did not have internal controls in place to perform continuous
and routine monitoring of its obligation process to ensure that
its obligations were processed as intended and were valid.
The City entered its NSP1 obligations into the Disaster Recovery
Grant Reporting database in June 2010 for its LH25 set-aside activities.
At that time, the obligations were not valid because the contracts
for those obligations had not been signed by all parties.
Overall,
the City's actions taken or planned regarding the issues indicated
its willingness to make necessary improvements.
Issue
Date: August 23, 2010
Audit Report
No.: 2010-AT-1010
File Size: 698KB
Title:
The Housing Authority of DeKalb County Improperly Used Its Net Restricted
Assets
HUD
OIG performed an audit of the Housing Authority of DeKalb County's
use of its net restricted assets based on a request from the Atlanta
Office of Public Housing. The request indicated that a significant
amount of net restricted assets was used to pay for items other
than the required housing assistance payments. The purpose of the
audit was to determine how the Authority expended its net restricted
assets and what controls were in place to ensure that net restricted
assets were not used for non-housing assistance payments.
The Authority used more than $2.5 million of its net restricted
assets to pay ineligible program and administrative expenses for
other assisted housing programs. The Authority did not (1) maintain
separate bank accounts, (2) properly track its net restricted asset
funds, and (3) have proper policies and controls in place. As a
result, it misused net restricted asset funds that could have provided
assistance to eligible families in its housing voucher program.
OIG recommended that the Director of Public and Indian Housing require
the Authority to (1) reconcile its books and records to determine
the amount of net restricted asset funds used to pay program and
administrative expenses for various housing programs, (2) reimburse
the net restricted assets fund account from non-Federal funds the
$2.5 million or the current amount owed from various housing programs,
and (3) implement its established policy for the use of net restricted
assets to ensure that net restricted assets are properly used and
bank accounts remain separated for the various programs.
Issue Date: January 13, 2010
Audit
Report No.: 2010-AT-1001
File Size: 1.62MB
Title: Mortgage Counseling Services, Inc., College Park, Georgia,
Did Not Follow HUD Requirements in Originating and Closing Loans
and Implementing Its Quality Control Program
HUD OIG performed an audit of Mortgage Counseling Services, Inc.,
a Federal Housing Administration approved non-supervised lender.
The review was performed based on the lender's high default rates.
The purpose of the audit was to determine whether the lender followed
the U.S. Department of Housing and Urban Development's (HUD) requirements
for (1) borrower eligibility and creditworthiness and property eligibility
when underwriting loans and (2) implementing a quality control program.
Based on information received during the audit, we expanded our
audit objectives to include reviewing the closing process to determine
whether Mortgage Counseling Services complied with HUD requirements
when closing loans.
Mortgage Counseling Services did not follow HUD requirements when
underwriting 8 of 16 FHA loans. HUD insured the eight loans that
unnecessarily placed the FHA insurance fund at risk for more than
$433,000. Mortgage Counseling Services did not conduct its quality
control reviews in a timely manner. In addition, the lender did
not report a significant quality control violation to HUD. As a
result, Mortgage Counseling Services did not ensure the accuracy,
validity, and completeness of its loan originations. Also, Mortgage
Counseling Services did not fully comply with HUD requirements in
closing two loans. Specifically, the lender misrepresented a HUD-1
settlement statement to HUD. Finally, the lender collected an uncustomary
and unreasonable appraisal fee after the loan closed. As a result,
HUD could not be assured that loans were properly closed, and the
noncompliance could result in an increased risk to the FHA insurance
fund.
OIG recommended that the Deputy Assistant Secretary for Single
Family Housing require Mortgage Counseling Services to indemnify
HUD for the potential loss on the eight loans with material deficiencies,
reimburse HUD for overinsuring one loan, and ensure that Mortgage
Counseling Services conducts quality control reviews in a timely
manner as required by HUD regulations. OIG also recommend that the
Deputy Assistant Secretary for Family Housing take appropriate action
against Mortgage Counseling Services for its noncompliance in closing
two loans.
Issue Date: December 14, 2009
Audit
Memorandum No.: 2010-AT-1802
File Size: 693.42KB
Title: The City of Atlanta, GA, Needs To Improve Certain Aspects
of Its NSP To Meet the Program ’s 18-Month Obligation Deadline
The City of Atlanta (City) received a $12.3 million Neighborhood
Stabilization Program (NSP) grant from HUD that was authorized under
Title III of the Housing and Economic Recovery Act. Also, the City
applied for an additional $57.9 million in NSP funds under the American
Recovery and Reinvestment Act of 2009. We selected the City for
review due to the amount of its NSP funding and because of performance
concerns identified during our previous audit of the City's HOME
Investment Partnerships Program (HOME). Our objective was to determine
whether the City has the capacity to effectively and efficiently
administer its NSP.
The City has developed the organizational structure needed to administer
its NSP and has hired a sufficient number of qualified staff to
implement the program. However, the City needs to expedite actions
to meet the program's 18-month obligation deadline due to delays
in executing implementation contracts and obligating funds, past
performance problems that still require attention, procurement inconsistencies,
and a lack of procedures for some components of its NSP.
We recommend that the Director of HUD's Atlanta Office of Community
Planning and Development require the City to (1) expedite the implementation
of the remaining $10.9 million approved for NSP activities to prevent
further delays that may prevent its ability to timely obligate funds,
(2) expedite execution of implementation contracts with developers
or subrecipients, (3) review and verify the accuracy of evaluator
scores for leveraged funds and fund commitments for all contractors
and determine whether further action is needed, (4) amend executed
contracts to include leveraged funds if the contractor(s) competed
for funding based on the City's leveraging requirement, proposed
to provide leveraged funds, and the City evaluated the contractor(s)
proposal against other contractors, giving consideration to proposed
leveraging (5) develop and implement procedures for land banking
and (6) implement procedures for entering and monitoring obligations
in HUD's reporting system, demolition, and tracking program income
in HUD's reporting system.
Issue Date: September 29, 2009
Audit
Report No.: 2009-AT-1013
File Size: 794.93KB
Title: The City of Atlanta Entered Incorrect Commitments into
HUD ’s Integrated Disbursement and Information System for its HOME
Program, Atlanta, Georgia
We audited the City of Atlanta's (City) HOME Investment Partnerships
Program (HOME) because it has received more than $17 million in
HOME funding since 2005. Our objective was to determine whether
the City accurately entered commitments into the U.S. Department
of Housing and Urban Development's (HUD) Integrated Disbursement
and Information System (information system) for HOME-funded activities.
The City did not comply with HUD requirements for committing HOME
funds within the 24-month statutory deadline. The audit identified
more than $6.8 million in incorrect commitment entries that the
City made to HUD's information system. The incorrect entries masked
a shortfall of more than $3.9 million that is subject to recapture
by HUD. The recaptures, which resulted from a failure of City staff
to implement adequate controls, will deprive City residents of services
that the HOME program was intended to provide. The incorrect commitments
also undermined the integrity of the information system and of reports
HUD generated from the system to monitor the City's compliance with
the 24-month statutory commitment requirement.
We recommend that the Director of HUD's Atlanta Office of Community
Planning and Development recapture more than $3.9 million in funds
not committed by the 24-month statutory deadline. We also recommend
that the Director require the City to implement controls to ensure
that future HOME funds are committed by the required deadline, monitor
commitments entered into the information system, and take appropriate
action to promptly correct detected violations.
Issue
Date: July 20, 2009
Audit Report
No.: 2009-AT-1009
File Size: 676.78KB
Title:
The Housing Authority of the City of Newnan, Georgia, Inappropriately
Encumbered Assets and Advanced Funds to Support Its Nonprofit Organization
HUD
OIG performed an audit of the Housing Authority of the City of Newnan's
activities with its related nonprofit organization, the Newnan Housing
Development Corporation. The review was performed based on concerns
that the Authority encumbered its assets, used its federal funds
to support nonprofit development activities, and had a conflict-of-interest
transaction. The purpose of the audit was to determine whether the
Authority inappropriately used funds and assets restricted by its
annual contributions contract with the U. S. Department of Housing
and Urban Development (HUD) to support the operations of its nonprofit
organization and incurred costs for insurance that involved a conflict
of interest.
The
Authority inappropriately encumbered $649,976 in HUD-restricted
funds in violation of its contract with HUD and also violated an
agreement it made with HUD concerning the sale and disposition of
Authority property. The Authority inappropriately used $221,531
of its public housing program funds for nonfederal development activities
in violation of its annual contributions contract with HUD. In addition,
it inappropriately used HUD funds to make 31 monthly payments on
a $150,000 loan on behalf of its nonprofit organization. HUD granted
a waiver for conflict-of-interest provisions and permitted the Authority
to purchase insurance from a company that employed a board member.
OIG
recommended that the Director of HUD's Atlanta Office of Public
Housing require the Authority to develop a plan to bring it into
compliance with HUD's requirements and if necessary, ensure that
the lender formally releases the $673,859 of HUD-related funds as
collateral; propose a legal solution regarding the ownership structure
of the nonprofit organization and if a legal solution is not possible,
repay its public housing program $221,531; implement adequate controls
and procedures to ensure that it does not encumber or spend HUD
assets on nonfederal activities without HUD approval; and develop
and implement a strategic, comprehensive marketing plan for the
nonprofit organization to ensure that it becomes financially sound.
Issue Date: April 23, 2009
Audit
Report No.: 2009-AT-1006
File Size: 410.84KB
Title: The Jonesboro Housing Authority Generally Complied with
Housing Quality Standards Inspections Requirements Although Certain
Weaknesses Existed, Jonesboro, Georgia
We audited the Jonesboro Housing Authority's (Authority) Section
8 Housing Choice Voucher program as part of the U.S. Department
of Housing and Urban Development (HUD) Office of Inspector General's
(OIG) annual audit plan. Our objective was to determine whether
the Authority's Section 8 housing choice voucher units met HUD standards.
The Authority's Section 8 units generally met housing quality standards.
Our inspection of 16 Section 8 units resulted in 11 that did not
meet minimum housing quality standards, but only one unit was in
material noncompliance. However, the Authority needed to improve
it's; enforcement of certain housing quality standards requirements,
tracking and timely performance of annual inspections, and abatement
notification and timely follow-up inspections of units that fail
their initial inspections. The violations resulted in the payment
of more than $6,000 in ineligible housing assistance. The violations
occurred because the Authority's oversight of the program and procedures
for conducting, tracking, and following up on housing quality standards
inspections had weaknesses.
We recommend that the director of the Office of Public Housing
require the Authority to repay $6,663 from nonfederal funds for
inappropriate housing assistance payments. We also recommend that
the director require the Authority to establish and implement adequate
controls and procedures for conducting, tracking, and following
up on future housing quality standards inspections.
Issue Date: April 1, 2009
Audit
Report No.: 2009-AT-1005
File Size: 314.88KB
Title: The City of Augusta, Georgia, Did Not Comply with HOME
Monitoring Requirements
HUD OIG performed an audit of the City of Augusta's HOME Investment
Partnerships program as part of the U.S. Department of Housing and
Urban Development's annual audit plan. The purpose of the audit
was to determine whether the City complied with HOME program requirements
for monitoring (1) HOME community housing development organizations
and subrecipients and (2) the use of CHDOs' proceeds. This is the
second of two audit reports on the HOME program.
The City did not comply with the HOME requirements for performing
its monitoring and follow-up reviews or have sufficient documentation
to support that required reviews were conducted. In addition, it
did not properly monitor the use of its community housing development
organizations' proceeds. The City did not implement its procedures
to ensure that the required monitoring and follow-up reviews were
performed and documented. Also, City officials did not follow and
enforce program monitoring requirements. HUD lacked assurance that
HOME funds was spent for activities that were administered in compliance
with program requirements, and community housing development organizations'
proceeds and grant funds of $105,049 were used for eligible program
costs.
OIG recommended that the Director of HUD's Atlanta Office of Community
Planning and Development require the City to properly support or
repay $105,049 in questioned costs because of program violations.
We also recommend that the Director require the City to establish
and implement proper controls and procedures to ensure compliance
with all program requirements
Issue
Date: February 10, 2009
Audit
Report No.: 2009-AT-1002
File Size: 775.43KB
Title:
The City of Augusta, Georgia Needs to Improve Controls Over its
Community Development Block Grant Facade Program
HUD
OIG performed an audit of the City of Augusta's Community Development
Block Grant Façade Rehabilitation Grant program due to concerns
of mismanagement and abuse regarding the City's program. The purpose
of the audit was to determine whether the City's façade program
complied with federal requirements and whether program activities
met the national objectives of the CDBG program The City did not
have adequate controls over its financial management of the façade
program. A review of the City's program drawdown reports showed
payments totaling $180,817 that were not recorded in the general
ledgers. . In addition, HUD could not be assured that the remaining
$270,175 in program funds would be accurately recorded or expended
in a timely manner.
The
City did not adequately monitor its façade program. It did not verify
the program match requirements or complete facade grants in a timely
manner. In addition, it did not ensure that program files were complete
and contained all information required by its policies and procedures.
OIG
recommended that the Director of HUD's Atlanta Office of Community
Planning and Development require the City to (1) properly support
or repay the façade program $180,817 from non-federal funds and
establish controls to ensure that all program transactions are accurately
recorded in the general ledgers and (2) establish controls to ensure
that the remaining $270,175 in program funds is used for its intended
purpose or reprogrammed to fund other eligible CDBG activities.
OIG also recommend that the Director ensure that the City establishes
controls to ensure that staff follows written policies and procedures
for administering the façade program.
Issue
Date: October 20, 2008
Audit
Report No.: 2009-AT-1001
File Size: 305.36KB
Title:
The Housing Authority of the City of Conyers, Georgia, Did Not Maintain
Adequate Controls over its Federal Funds
HUD
OIG performed an audit of the Housing Authority of the City of Conyers'
administration of its disbursements and procurement procedures.
The Georgia State Office of Public Housing requested the audit due
to concerns regarding the use of its funds and violation of its
procurement procedures The purpose of the audit was to determine
whether the Authority used its federal funds in compliance with
HUD regulations and other requirements.
The
Authority used $891,468 in federal funds to pay ineligible and unsupported
costs. It did not establish effective controls to protect its assets.
The Authority's board did not ensure that the former executive director
expended funds in accordance with Authority and HUD requirements,
adequately documented expenditures, and followed procurement policies.
OIG
recommended that the Director of HUD's Atlanta Office of Public
Housing require the Authority to repay $185,764 to its public housing
operating and capital improvement programs for ineligible payments
made to or on behalf of the former board chairman, support $182,369
in payments made to or on the behalf of the former executive director
and the former lease enforcement officer, provide documentation
to support $523,335 in payments made for various purchases or repay
its public housing program, review and implement internal controls
for purchasing goods and services, and ensure that its board performs
its oversight duties in a responsible manner. OIG also recommended
that the Acting Director of the Departmental Enforcement Center,
in coordination with the Director of the Office of Public Housing,
take appropriate administrative action against the Authority officials
responsible for the improper disbursements.
Issue
Date: July 25, 2008
Audit
Report No.: 2008-AT-1010
File Size: 198.56KB
Title:
Meridian Lending, Inc., Monroe, Georgia, Did Not Follow HUD Requirements
in Originating Two Insured Loans
HUD
OIG audited Meridian Lending, Inc., a Federal Housing Administration
(FHA)-approved direct endorsement lender. The objectives were to
determine whether it followed the U.S. Department of Housing and
Urban Development's (HUD) requirements for (1) borrower eligibility
and creditworthiness and property eligibility when underwriting
loans and (2) implementing a quality control program.
Meridian
did not follow HUD requirements in originating two of the eight
FHA-insured loans reviewed. As a result, Meridian placed HUD's insurance
fund at risk for as much as $271,750. In addition, Meridian did
not review its early defaulting loans in a timely manner and did
not review all early defaulting loans. As a result, the lender adversely
impacted the goals of HUD's quality control program, which is designed
to protect the lender and HUD from unacceptable risk.
OIG
recommended that the Assistant Secretary for Housing-Federal Housing
Commissioner require Meridian to indemnify HUD for the potential
loss on the loan with a significant deficiency and reimburse HUD
for the claim loss on the other loan. Also require Meridian to conduct
its quality control reviews in a timely manner and reviews all early
defaulting loans as required by HUD regulations.
Issue Date: June 9, 2008|
Audit Report
No.: 2008-AT-1009
File Size: 872.84KB
Title: The City of Augusta, Georgia, Controls Over Its HOME Program
Were Inadequate
HUD OIG audited the City of Augusta's HOME Investment Partnerships
program. The audit was part of the activities in the fiscal year
2007 annual audit plan. The objectives were to determine whether
the City complied with HOME program requirements for commitments,
production and completion of project activities, and eligibility
and support of project costs.
The City's controls over its HOME program were inadequate. As a
result, more than $1 million in HOME funds that involved questioned
costs and funds that were subject to recapture. Specifically, the
City did not (a) properly commit $755,284, (b) have proper documentation
and analysis to support approvals and effectively address project
performance delays, (c) ensure proper support of more than $196,657,
(d) ensure the eligibility of $92,129 for affordable housing compliance,
and (e) properly maintain and manage program staff.
OIG recommended that the Director of HUD's Atlanta Office of Community
Planning and Development require the City to properly support or
repay more than $566,697 in questioned costs and recapture more
than $477,373 because of program violations. We also recommend HUD
require the City to establish and implement proper controls and
procedures to ensure compliance with program requirements.
Issue Date: March 7, 2008
Audit Report
No.: 2008-AT-1006
File Size:741.60KB
Title: Fulton County HOME Investment Partnerships Program
As part of HUD OIG's strategic plan, we audited Fulton County's
(County) HOME Investment Partnerships (HOME) program. Our audit
objectives were to determine whether the County complied with HOME
program requirements for review and approval of project activities,
commitments, completion of project activities, eligibility and reasonableness
of project costs, and matching funds.
The County did not properly manage its HOME program and consistently
failed to follow requirements. Our review identified more than $6.4
million in HOME funds that involve questioned costs, funds that
are subject to recapture, and a missing match contribution. Specifically,
the County did not (a) properly commit more than $2.57 million and
is in danger of losing another $828,008 that is approaching the
commitment deadline, (b) prepare or maintain proper documentation
to support project approvals, (c) ensure the eligibility of more
than $1.26 million, (d) ensure proper support of more than $1.55
million, (e) effectively address project delays, (f) maintain records
to support affordable housing compliance, (g) contribute more than
$226,000 in HOME match funds, (h) maintain proper performance records,
(i) conduct or document project monitoring, and (j) properly maintain
and manage program staff. The violations occurred because County
management and staff did not follow and enforce program requirements.
OIG recommended that the Acting Director of the Departmental Enforcement
Center, in coordination with the Acting Director of HUD's Atlanta
Office of Community Planning and Development, take appropriate administrative
action against the County official responsible for most significant
reported violations. Also that the Acting Director of HUD's Atlanta
Office of Community Planning and Development require the County
to properly support or repay more that $4.28 million in questioned
costs, recapture more than $2.16 million because of program violations,
and determine whether the County has the capacity to continue administering
the HOME program. If the County does not have the capacity to continue
administering the program, the Acting Director should terminate
the program and reallocate the County's HOME funding to other properly
performing participating jurisdictions. Further, if the County is
allowed to continue administering the program, the Acting Director
should require it to establish and implement proper controls and
procedures to ensure compliance with program requirements. Lastly,
the Acting Director should require the County to obtain periodic
reviews of the program by its internal audit division to confirm
compliance and provide copies of the reports to your office with
actions taken to correct reported violations.
Archived Audit Reports
Audit Reports issued between 1995 and September 30, 2007 are available
on our Archives
website.
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