We audited the Housing Authority of the City of El Paso because it met our oversight objectives for the American Recovery and Reinvestment Act of 2009, and because our risk assessment found the Authority had more than $1.7 million to be spent within 3 months of the expenditure deadline.  Our audit objectives were to determine whether the Authority properly (1) obligated and spent its formula Recovery Act grant funds, (2) obtained its formula Recovery Act contracts, and (3) reported results in an accurate and timely manner.

The Authority improperly obligated Recovery Act funds totaling about $2.68 million after the statutory obligation deadline.  It properly spent the remainder of the funds, which totaled about $10 million, by the statutory expenditure deadline.  Also, it improperly documented its bid evaluations of and may have improperly obtained 11 roofing contracts totaling about $5.87 million.  The Authority’s improper actions occurred due to how and when it planned and performed its Recovery Act obligations.  The Authority properly reported its Recovery Act results accurately and in a timely manner.

We recommend the Director of the Fort Worth Office of Public Housing require the Authority to repay about $2.68 million in 2009 Recovery Act funds to the U. S. Treasury or provide eligible costs that it obligated and expensed before the deadlines.  In addition, HUD should require the Authority to provide support for or repay $5.87 million for the 11 contracts that it could not show were properly procured.