HUD OIG performed an audit of the City of Augusta's HOME Investment Partnerships program as part of the U.S. Department of Housing and Urban Development's annual audit plan. The purpose of the audit was to determine whether the City complied with HOME program requirements for monitoring (1) HOME community housing development organizations and subrecipients and (2) the use of CHDOs' proceeds. This is the second of two audit reports on the HOME program.

The City did not comply with the HOME requirements for performing its monitoring and follow-up reviews or have sufficient documentation to support that required reviews were conducted. In addition, it did not properly monitor the use of its community housing development organizations' proceeds. The City did not implement its procedures to ensure that the required monitoring and follow-up reviews were performed and documented. Also, City officials did not follow and enforce program monitoring requirements. HUD lacked assurance that HOME funds was spent for activities that were administered in compliance with program requirements, and community housing development organizations' proceeds and grant funds of $105,049 were used for eligible program costs.

OIG recommended that the Director of HUD's Atlanta Office of Community Planning and Development require the City to properly support or repay $105,049 in questioned costs because of program violations. We also recommend that the Director require the City to establish and implement proper controls and procedures to ensure compliance with all program requirements.