HUD OIG audited the Neighborhood Stabilization Program (Program) administered by Broward County, Florida (County). The objective was to determine whether the County had the necessary controls to administer its Program in accordance with the Housing and Economic Recovery Act of 2008. Specifically, we evaluated whether the County had adequate (1) management controls to ensure that activities met Program objectives and (2) financial controls to ensure that obligations were timely and valid and expenditures were allowable and properly reported.

The County had (1) adequate management controls to ensure that activities met Program objectives and (2) adequate financial controls to ensure that obligations were timely and valid and expenditures were allowable. However, it needs to strengthen some controls over its Program. The County did not accurately report Program financial information to the U.S. Department of Housing and Urban Development (HUD) and incorrectly posted Program expenditures to the wrong fiscal year in its financial management system. As a result, HUD has no assurance of the County’s actual financial progress of its Program and the County overstated its obligation and expenditures in its financial management system. In addition, it did not post first and second quarter Program performance reports to its Web site in a timely manner. Thus, the citizens of Broward County were not informed in a timely manner regarding the use of Program funds.

OIG recommended that the Director of the Miami Office of Community Planning and Development require the County to (1) establish controls to reconcile Program obligations and expenditures between HUD’s Disaster Recovery Grant Reporting system (system) and the County’s financial management system, (2) strengthen controls to ensure that all Program activities are properly reported in HUD’s system and their financial management system on a timely basis, and (3) post its Program quarterly performance reports on its Web site in a timely manner.