We reviewed the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs administered by the Community Development Agency, City of Fall River, Massachusetts (City) as part of our annual audit plan.

Our audit objective was to determine whether the City administered its CDBG and HOME programs in compliance with U. S. Department of Housing and Urban Development (HUD) requirements. We focused on whether the City: (1) had adequate internal controls over its management process, accounting, and data processing; (2) used CDBG funds for national objectives; (3) used CDBG and HOME program funds for eligible activities and were adequately supported; and (4) properly accounted for CDBG and HOME program income.

The City generally administered its CDBG and HOME programs in compliance with HUD requirements. The City's (1) internal controls over its management process, accounting, and data processing were adequate, (2) CDBG funds were used for national objectives, (3) CDBG and HOME program funds were used for eligible activities and were adequately supported, and (4) CDBG and HOME program income was properly accounted for. Thus, the report contains no formal recommendations and no further action is necessary. However, the City has more than $3 million in unobligated HOME funds and could benefit by developing partnerships with additional Community Housing Development Organizations (CHDOs) to use these funds to develop additional housing for low to moderate income families.