We recommend that Deputy Assistant Secretary for Grant Programs adopt and enforce new written policies, procedures, and internal controls for all CDBG Disaster Recovery funds that have a statutory grantee expenditure deadline, which will ensure that $413,530,414 in 2013 Act funds will be put to better use.
Publication Report
2019-FW-0001 | May 17, 2019
HUD CPD Did Not Enforce the Disaster Appropriations Act, 2013, 24-Month Grantee Expenditure Requirement
We initiated our audit in accordance with our strategic goal to provide the U.S. Department of Housing and Urban Development (HUD) with services and products to address vulnerabilities, to provide opportunities for improvements, and to recognize positive… moreRelated Recommendations
Community Planning and Development
- Status2019-FW-0001-001-AOpenClosedClosed on March 31, 2020$167,254,244.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
We recommend that Deputy Assistant Secretary for Grant Programs require two grantees to repay $167,254,244 for grants funds spent in excess of the amount obligated for a round.
- Status2019-FW-0001-001-BOpenClosedClosed on March 31, 2020$24,409,255.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
We recommend that Deputy Assistant Secretary for Grant Programs require five grantees to repay $24,409,255 for grant funds spent before the grantee had signed a grant round agreement obligating the funds.
- Status2019-FW-0001-001-COpenClosedClosed on July 01, 2020$334,441,871.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
We recommend that Deputy Assistant Secretary for Grant Programs require four grantees to repay $334,441,871 for grant funds spent by the grantee after the grant round’s 24-month expenditure deadline had expired.
- Status2019-FW-0001-001-DOpenClosedClosed on March 31, 2020$524,289.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
We recommend that Deputy Assistant Secretary for Grant Programs recapture $524,289 in grant funds, which the grantee had not reported spent by the grant round expenditure deadline, and return the funds to the U.S. Treasury as HUD can no longer reobligate the funds.
We recommend that Deputy Assistant Secretary for Grant Programs take action to correct and address the DRGR system material internal control weaknesses identified in this report.