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Línea Directa

REPORTAR FRAUDE, DESPERDICIO O ABUSO
Agosto 09, 2013
2013-NY-1009
2013-NY-1009.pdf

We audited Essex County, NJ’s HOME Investment Partnerships Program based on a risk assessment that considered grantee funding, the U.S. Department of Housing and Urban Development’s (HUD) risk analysis, and prior audit coverage.  The objective of the audit was to determine whether County officials established and implemented adequate controls to ensure that the HOME program was administered in compliance with program requirements.

The County’s HOME program was not always administered in compliance with program requirements.  Specifically, (1) HOME funds were not always committed and expended in a timely manner as required, (2) program income was not always expended or reported properly, (3) HOME funds were expended on ineligible and unsupported costs, and (4) HOME match contribution funds were ineligible and from unsupported sources.  We attribute these deficiencies to County officials’ unfamiliarity with HOME regulations and inadequate financial and administrative controls.  Consequently, (1) $856,543 was not committed and expended as required, (2) $63,781 in program income was not recorded in HUD’s Integrated Disbursement and Information System, (3) $73,466 and $66,206 in HOME funds were expended on ineligible and unsupported activities, respectively, (4) $1,504 was paid by HOME tenants in excess of HOME low rent limits, (5) more than $1.1 million in entitlement funds drawn down was unsupported based upon ineligible match contributions, and (6) ineligible match contributions of more than $16 million were reported that could be used for future drawdowns of HOME entitlement funds.

We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development recapture $856,543 not committed and expended as required and instruct County officials to record $63,781 in program income, reimburse the HOME program $73,466 for ineligible disbursements, reimburse tenants of HOME-assisted units $1,504, provide documentation for unsupported costs of $66,206  and drawdowns of more than $1.1 million in entitlement funds, and remove more than $16 million in ineligible reported match contributions.