We audited the Catholic Social Services of the Diocese of Scranton’s (grantee) use of the U.S. Department of Housing and Urban Development’s (HUD) Supportive Housing and HOME Investment Partnerships Program funds used for the renovation of St. Hedwig’s Veterans Village.  We audited the grantee because we received a complaint alleging misuse of HUD funds and a potential conflict of interest involving the construction management company.  Our audit objective was to determine whether the grantee used its HUD funds related to St. Hedwig’s Veterans Village in accordance with key HUD requirements to (1) maintain adequate documentation to demonstrate that renovation, operating, and administrative costs of the project were eligible; (2) assist only eligible tenants; (3) accurately calculate rents; and (4) avoid conflict-of-interest situations.

The grantee generally used its HUD funds related to St. Hedwig’s Veterans Village in accordance with key HUD requirements.  The allegations in the complaint did not have merit.  The grantee generally incurred eligible renovation, operating, and administrative costs that were supported by adequate documentation.  It assisted eligible tenants and generally calculated rents accurately.  The alleged conflict-of-interest situation did not exist.

This report contains no recommendations.