We audited the City of Erie, PA’s Community Development Block Grant program because we received a complaint regarding its code enforcement program and we had not audited the City’s program since 1997. The complaint alleged that the City targeted low- to middle-income residents in certain neighborhoods requiring expensive repairs to their homes and properties, which could result in legal actions and liens if the homeowners did not make repairs by a deadline, generally 30 days. Our audit objective was to determine whether the City properly used its Block Grant funds for its code enforcement and community policing activities in accordance with U.S. Department of Housing and Urban Development (HUD) and Federal requirements.
The City did not always properly use its Block Grant funds for code enforcement and community policing activities according to HUD and Federal requirements. The complaint was correct in that the City conducted code enforcement inspections in areas where most residents were low- and moderate-income. Block Grant funds are intended to benefit these residents. However, the City did not maintain documentation to (1) show that it complied with program eligibility requirements, and (2) support expenses. These conditions occurred because the City lacked policies and procedures for its Block Grant-funded code enforcement and community policing activities and misunderstood HUD requirements. As a result, the City’s use of nearly $1.7 million in program funds was unsupported.
We recommend that the Director of HUD’s Pittsburgh Office of Community Planning and Development require the City to (1) provide documentation to support $671,838 in code enforcement costs or repay the program from non-Federal funds for any amount it cannot support, (2) provide documentation to support $1 million in community policing costs or repay the program from non-Federal funds for any amount it cannot support, and (3) develop and implement policies and procedures to ensure that its code enforcement and community policing activities costs comply with applicable program requirements, thereby ensuring that program funds totaling $597,801 can be put to better use.
Recommendations
Community Planning and Development
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Status2018-PH-1008-001-AOpenClosedClosed on Abril 03, 2019
Follow up on the 15 properties in our sample to ensure that the code enforcement violations have been corrected, that the necessary documentation has been gathered and retained in the code enforcement file for the property, and that the code enforcement process has been completed.
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Status2018-PH-1008-001-BOpenClosed$671,838.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Provide documentation to support $671,838 in code enforcement costs or repay the program from non-Federal funds for any amount that it cannot support.
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Status2018-PH-1008-001-COpenClosed$301,866.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on Abril 02, 2019Develop and implement policies and procedures to ensure that its Block Grant-funded code enforcement activities comply with HUD requirements, including documentation requirements, thereby ensuring that funds totaling $301,866 can be put to better use.
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Status2018-PH-1008-001-DOpenClosed$1,000,000.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Provide documentation to support $1 million in community policing salary costs or repay the program from non-Federal funds for any amount that it cannot support.
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Status2018-PH-1008-001-EOpenClosed$295,935.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on Abril 01, 2019Develop and implement policies and procedures to ensure that Block Grant-funded community policing salaries and benefits comply with HUD requirements, including documentation requirements, thereby ensuring that funds totaling $295,935 are put to better use.