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Report Fraud, Waste and Abuse
  • Recommendation Number: 2019-AT-1004-001-J
  • Status: Closed
  • Date Issued: June 14, 2019
Closed Date:
November 16, 2020

Review the Department’s remaining NSP grant expenditures before its drawdowns to ensure that the expenditures are eligible and adequately supported.

Publication Report

2019-AT-1004 | June 14, 2019

The North Carolina Department of Commerce Did Not Administer Its Neighborhood Stabilization Program Grants as Required by HUD

We audited the North Carolina Department of Commerce’s Neighborhood Stabilization Program (NSP) grants as part of our annual audit plan because the Department received more than $57 million in NSP1 and NSP3 funding.  Our audit objective was to… more

Related Recommendations

Community Planning and Development

  •   2019-AT-1004-001-A
    $417,113.00

    Put $417,113 in unspent NSP1 funds associated with three activities to better use by reprogramming the funds to other subrecipients using an appropriate method or return the funds to HUD.

  •   2019-AT-1004-001-B
    $1,300,000.00

    Support or reimburse its NSP1 grant $1,300,000 from non-Federal funds for the unsupported reallocation of grant funds.

  •   2019-AT-1004-001-C

    Closed on September 07, 2022

    Establish and implement a written policy and procedures to recapture and reallocate unused NSP funds in a timely manner.

  •   2019-AT-1004-001-D
    $1,186,105.00

    Support or reimburse the appropriate NSP grant $1,186,105 from non-Federal funds for the unsupported subrecipient and administrative expenditures.

  •   2019-AT-1004-001-E

    Closed on August 12, 2020

    Update its records retention policy to meet HUD’s records retention requirements for supporting documentation for Federal program expenses, including salaries.

  •   2019-AT-1004-001-F

    Update the NSP program income information in HUD’s grant tracking system and quarterly performance reports and reconcile with the Department’s records.

  •   2019-AT-1004-001-G

    Establish and implement written procedures and provide adequate training to staff associated with administering the NSP grant to help ensure accurate reporting of program income.

  •   2019-AT-1004-001-H
    $11,916,072.00

    Closed on August 04, 2020

    Develop and implement a remediation plan for the six NSP activities to show that the national objectives have been met as required to support $11,916,072 in program funds drawn or reimburse its program from non-Federal funds.

  •   2019-AT-1004-001-I

    Closed on November 16, 2020

    Work with the Department so that it plans properly to ensure that the six activities identified in this report meet a national objective thereby avoiding extended project delays.