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The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Topeka, KS Housing Authority’s administration of its Recovery Act competitive capital fund grants. We selected the Authority for review because it spent a large amount of Recovery Act funds. Our objectives were to determine whether the Authority expended Recovery Act grant funds in accordance with Recovery Act requirements and applicable HUD rules, met procurement requirements in selecting the developers for its mixed-finance projects, and reported Recovery Act grant information in Recovery.gov accurately and completely.

The Authority generally obligated and expended its Recovery Act funds in accordance with Recovery Act rules and regulations. However, it did not adequately document its selection of the Tennessee Town II developer. In addition, it did not accurately or completely report Recovery Act grant information in Recovery.gov.

We recommend that the Director of HUD’s Kansas City Office of Public Housing ensure that the Authority’s staff receives procurement training and the Authority develops and implements detailed operational procedures to strengthen existing procurement policies. We also recommend that the Director work with the Authority to update its Recovery Act Web site, as appropriate, to reflect the correct program information.