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Línea Directa

REPORTAR FRAUDE, DESPERDICIO O ABUSO
Julio 08, 2011
  • Community Planning and Development
2011-AT-1012
ig1141012.pdf

We audited the Office of the Commissioner for Municipal Affairs’ (OCAM) State Community Development Block Grant (Block Grant) funds that it received under the American Recovery and Reinvestment Act of 2009 (Recovery Act). We selected OCAM for review as part of our strategic plan, based on the amount of Block Grant Recovery Act funds allocated. The objectives of this audit were to determine whether OCAM (1) disbursed Block Grant Recovery Act funds in accordance with applicable requirements and for eligible purposes and (2) reported to HUD accurate and supported information on program accomplishments.

OCAM did not always charge the Block Grant Recovery Act program for supported disbursements or ensure that its funds were used in a timely manner in accordance with HUD regulations. In addition, it did not always report accurate and supported information on program accomplishments. HUD lacked assurance that more than $135,000 in Block Grant Recovery Act program expenditures was allowable and allocable, and more than $42,000 in drawdowns remained unexpended. In addition, OCAM reported inaccurate information to HUD when it overstated program expenditures by at least $450,000 and lacked support for the number of jobs created or retained. As a result, HUD lacked assurance that the expenditures were reasonable, allocable, and used for authorized purposes in a timely manner and that reported program accomplishments were accurate and complete.

We recommend that HUD require OCAM to submit documentation to adequately support the allowability and allocability of $135,445 charged to the Block Grant Recovery Act program associated with administrative costs expenditures. HUD should also require OCAM to ensure that $42,829 associated with unexpended drawdowns is used for the approved activity or reprogrammed for other eligible purposes.

HUD should also require OCAM to review all Block Grant Recovery Act spending and job information in the Federal reporting Web site and correct any inaccurate information. We further recommend that HUD require OCAM to establish adequate internal controls and procedures to ensure that all Block Grant Recovery Act expenditures are supported, disbursed in a timely manner, properly accounted for, and reconciled with HUD’s information system and that they comply with HUD requirements. In addition, HUD should require OCAM to establish and implement internal control measures to ensure that accurate and supported Block Grant Recovery Act data are reported.