We audited DuPage County’s Community Development Block Grant Disaster Recovery program. The audit was part of the activities in our fiscal year 2017 annual audit plan. We selected the County’s program for review because the County had spent the most program funds authorized under the Disaster Relief Appropriations Act of 2013 in Region 5’s jurisdiction.[1] Our objective was to determine whether the County administered its program in accordance with Federal requirements.
The County did not always comply with Federal requirements regarding the administration of its program. Specifically, it (1) used program funds in place of County funds budgeted for a project, (2) obligated program funds for ineligible activities, and (3) did not perform a cost or price analysis for a consulting contract. As a result, the U.S. Department of Housing and Urban Development (HUD) and the County lacked assurance that more than $569,000 in program funds was available for eligible program activities. Further, HUD and the County lacked assurance that nearly $99,000 in program funds used to pay for project management services was reasonable.
We recommend that the Director of HUD’s Chicago Office of Community Planning and Development ensure that the County does not use program funds to reimburse the County bond proceeds budgeted for the Armstrong Park project but used to pay for flood protection improvements and use the remaining proceeds budgeted for the project for eligible program activities. We also recommend that the Director require the County to (1) deobligate program funds obligated for ineligible activities, (2) support that the use of funds for project management services was reasonable or reimburse its program from non-Federal funds, and (3) improve its procedures and controls to address the weaknesses cited in this audit report.
Recommendations
Community Planning and Development
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Status2017-CH-1010-001-AOpenClosed$452,444.00Funds 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 Septiembre 17, 2019The County does not reimburse itself with program funds for the $452,444 in County bond proceeds originally budgeted for the Armstrong Park project and used to pay for flood protection improvements in the Graue Mill subdivision in Hinsdale.
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Status2017-CH-1010-001-BOpenClosed$7,677.00Funds 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 Marzo 15, 2019The $7,677 ($460,121 - $452,444) in remaining County bond proceeds originally budgeted for the Armstrong Park project are used for eligible program activities.
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Status2017-CH-1010-001-COpenClosed$109,270.00Funds 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 Septiembre 13, 2019Deobligate the $109,270 in program funds obligated for ineligible activities in its construction contracts for the West Branch DuPage River Flood Control and Springbrook Culvert projects.
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Status2017-CH-1010-001-DOpenClosed$98,507.00Questioned 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.
Closed on Diciembre 04, 2019Support or reimburse its program from non-Federal funds $98,507 for the program funds used for project management services without sufficient documentation to support that the use of the funds was reasonable.
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Status2017-CH-1010-001-EOpenClosedClosed on Septiembre 17, 2019
Improve its procedures and controls to ensure that the County administers the program in accordance with Federal requirements.