HUD OIG audited the Community Development Block Grant (CDBG) program administered by the City of Fort Lauderdale, Florida (City). The objective of the audit was to determine whether the City administered its CDBG program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements. The City did not administer its CDBG program in accordance with applicable HUD requirements.

It did not provide supporting documentation or did not maintain adequate supporting documentation to demonstrate that CDBG activities met national objectives. As a result, it had no assurance that more than $5 million in expended CDBG funds achieved the intended national objective or met program requirements. In addition, the City's CDBG financial information in its Financial Accounting Management Information System did not agree with financial information reported to HUD. The City also failed to report CDBG program income to HUD for one project. As a result, there is no assurance that the City reported accurate CDBG financial information to HUD in accordance with HUD regulations. Finally, the City improperly allocated 100 percent of its vehicle expenditures to the CDBG program without adequate supporting documentation demonstrating the use of the vehicles. As a result, there is no assurance that $98,967 in vehicle expenses allocated to the CDBG program was accurate and CDBG program related.

OIG recommended that the Director of the Miami Office of Community Planning and Development require the City to (1) provide documentation to support that CDBG program requirements were followed and national objectives were met for the 20 public facility activities and 11 public service activities or reimburse its program $2.3 million from nonfederal funds; (2) provide an action plan for development of land parcels to include how national objectives will be achieved and if not developed within 90 days, reimburse its program the greater of $2.6 million or the fair market value of the property from nonfederal funds; (3) maintain supporting documentation that CDBG program requirements were followed and national objectives were met for the 20 public facility activities and 11 public service activities according to 24 CFR 570.506 to allow $722,377 in unused funds to be put to better use by ensuring that the City effectively uses these funds for the intended clientele; and (4) update, implement, and enforce written monitoring policies and procedures to ensure effective performance and compliance with federal regulations for meeting CDBG national objectives. The Director should also require the City to (1) reconcile its Financial Accounting Management Information System with the HUD Integrated Disbursement and Information System and notify HUD of the adjustments and (2) report rental and interest income for one project as CDBG program income. In addition, the Director should require the City to reimburse the program $98,967 from nonfederal funds, since there is no assurance that vehicle use was CDBG program related.