We audited the Fort Bend County Community Development Department based on our risk analysis and as part of our annual audit plan to review Office of Community Planning and Development (CPD) funds. The audit objective was to determine whether the Department (1) properly carried out its activities as shown in its submission to the U.S. Department of Housing and Urban Development (HUD) in an economical, efficient, and effective manner; (2) complied with program requirements; and (3) had adequate controls to ensure compliance with HUD regulations.
We found that the Department generally carried out its activities as submitted; however, it did not comply with some requirements for its Community Development Block Grant, HOME Investment Partnerships, and Emergency Solutions Grant programs. Further, the Department did not always ensure compliance with HUD regulations. Specifically, it did not (1) perform cost analyses and independent cost estimates for contracts totaling $240,010, (2) include required provisions in its agreements, (3) monitor subrecipients, (4) report and properly use $22,872 in program income, or (5) properly match $3,301 in HOME funds as required. These conditions occurred because the Department did not have adequate controls over its programs. Further, it was unaware of some requirements and believed other requirements were not feasible due to its lack of staff resources. As a result, the Department paid $266,183 in questioned costs and could not provide reasonable assurance to HUD that it properly administered, adequately safeguarded, and spent its HUD funds in accordance with requirements.
We recommend that the Director of HUD’s Houston Office of Community Planning and Development require that the Department develop and implement procedures to ensure that future contracts and subrecipient agreements address the issues identified in this report and confirm that it has done so. In addition, we recommend that HUD require the Department to (1) repay or support the $240,010 in unsupported procurement payments, (2) report $22,872 in program income, and (3) pay $3,301 in match liability.
Recommendations
Community Planning and Development
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Status2017-FW-1013-001-AOpenClosed$240,010.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on March 13, 2019We recommend that the Director of HUD’s Houston Office of Community Planning and Development require the Department to support the $240,010 in unsupported procurement payments or repay its CDBG program from non-Federal funds.
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Status2017-FW-1013-001-BOpenClosed$22,872.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on December 20, 2017We recommend that the Director of HUD’s Houston Office of Community Planning and Development require the Department to report $22,872 in program income to HUD and properly use program income.
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Status2017-FW-1013-001-COpenClosed$3,301.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on December 20, 2017We recommend that the Director of HUD’s Houston Office of Community Planning and Development require the Department to correct its HOME matching liability report to include the recalculated amount for 2014 and pay the matching liability of $3,301.
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Status2017-FW-1013-001-DOpenClosedClosed on January 10, 2018
We recommend that the Director of HUD’s Houston Office of Community Planning and Development require the Department to confirm that it has developed and implemented written procurement procedures to ensure that future contracts and subrecipient agreements address the procurement and required provision issues identified in the report.
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Status2017-FW-1013-001-EOpenClosedClosed on December 20, 2017
We recommend that the Director of HUD’s Houston Office of Community Planning and Development require the Department to ensure that all program files include required documentation and support.
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Status2017-FW-1013-001-FOpenClosedClosed on January 10, 2018
We recommend that the Director of HUD’s Houston Office of Community Planning and Development require the Department to monitor subrecipients annually as stated in its monitoring policy.
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Status2017-FW-1013-001-GOpenClosedClosed on December 20, 2017
We recommend that the Director of HUD’s Houston Office of Community Planning and Development require the Department to train its staff regarding HUD requirements and regulations or seek technical assistance.