We audited the City of Jacksonville, FL’s HOME Investment Partnerships program as part of the activities in our annual audit plan.  Our audit objective was to determine whether the City administered its HOME program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements.  Specifically, we evaluated whether the City (1) properly supported HOME commitments in the Integrated Disbursement and Information System and (2) ensured that all HOME contracts and agreements were properly executed.

The City did not always administer its HOME program in accordance with HUD’s requirements.  Specifically, it did not (1) ensure that all HOME contracts and agreements were properly executed and (2) properly support HOME commitments in the Integrated Disbursement and Information System.  This condition occurred because the City’s staff did not comply with HUD’s HOME program guidance concerning contract execution requirements and commitment deadlines.  As a result, the City entered improper commitments into the information system and may be at risk of losing the funds to recapture.

We recommend that Director of HUD’s Jacksonville, FL, Office of Community Planning and Development (1) recalculate the commitment requirement as a result of the City’s improperly committing HOME funds for the activities identified and determine the cumulative effect on the City’s overall commitment requirement, and (2) require the City to establish and implement controls and procedures to ensure that valid commitment entries and all HOME contracts and agreements are properly executed.