We audited the City of Altoona, Pennsylvania’s (City) capacity to administer funds it receives under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The City will receive $1.3 million in Recovery Act funds to carry out Community Development Block Grant and Homelessness Prevention Rapid Re-Housing activities. Our objective was to determine whether the City had adequate capacity and controls to adequately administer its Recovery Act funds. We found that the City needs to strengthen its capacity and controls to effectively administer funds provided to it under the Recovery Act. We recommend that HUD require the City to implement controls to ensure Recovery Act activities are supported and meet eligibility requirements. We also recommend that the City update its written monitoring procedures for all subrecipients to ensure accountability and transparency of Recovery Act funds, and evaluate its staffing and consider hiring additional staff to administer the funds.
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