As part of HUD OIG's strategic plan, we audited Fulton County's (County) HOME Investment Partnerships (HOME) program. Our audit objectives were to determine whether the County complied with HOME program requirements for review and approval of project activities, commitments, completion of project activities, eligibility and reasonableness of project costs, and matching funds.

The County did not properly manage its HOME program and consistently failed to follow requirements. Our review identified more than $6.4 million in HOME funds that involve questioned costs, funds that are subject to recapture, and a missing match contribution. Specifically, the County did not (a) properly commit more than $2.57 million and is in danger of losing another $828,008 that is approaching the commitment deadline, (b) prepare or maintain proper documentation to support project approvals, (c) ensure the eligibility of more than $1.26 million, (d) ensure proper support of more than $1.55 million, (e) effectively address project delays, (f) maintain records to support affordable housing compliance, (g) contribute more than $226,000 in HOME match funds, (h) maintain proper performance records, (i) conduct or document project monitoring, and (j) properly maintain and manage program staff. The violations occurred because County management and staff did not follow and enforce program requirements.

OIG recommended that the Acting Director of the Departmental Enforcement Center, in coordination with the Acting Director of HUD's Atlanta Office of Community Planning and Development, take appropriate administrative action against the County official responsible for most significant reported violations. Also that the Acting Director of HUD's Atlanta Office of Community Planning and Development require the County to properly support or repay more that $4.28 million in questioned costs, recapture more than $2.16 million because of program violations, and determine whether the County has the capacity to continue administering the HOME program. If the County does not have the capacity to continue administering the program, the Acting Director should terminate the program and reallocate the County's HOME funding to other properly performing participating jurisdictions. Further, if the County is allowed to continue administering the program, the Acting Director should require it to establish and implement proper controls and procedures to ensure compliance with program requirements. Lastly, the Acting Director should require the County to obtain periodic reviews of the program by its internal audit division to confirm compliance and provide copies of the reports to your office with actions taken to correct reported violations.