We audited the Greensboro Housing Authority (Authority) as part of our annual plan to review public housing capital funds awarded under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Authority received a $5.6 million Public Housing Capital Fund Stimulus (formula) Recovery Act Funded grant, the second highest in the State. It also received a Recovery Act funded $1.05 million capital fund competitive grant for addressing the needs of the elderly and persons with disabilities. Our overall objective was to determine whether the Authority obligated and disbursed capital funds received under the Recovery Act in accordance with applicable U.S. Department of Housing and Urban Development (HUD) rules and regulations. Our specific objectives were to determine whether the Authority (1) properly obligated funds, (2) complied with applicable procurement requirements, (3) properly drew down and expended funds for eligible activities, and (4) properly reported its Recovery Act activities.

Although the Authority used its Recovery Act funds for eligible activities and complied with most program requirements, it had several deficiencies with regard to obligations, procurement, expenditures, and reporting. These deficiencies occurred due to staff errors and insufficient internal controls for some functions. As a result, the Authority could not support the eligibility of $741,848 in obligations, contracts, and expenditures, and its reporting for Recovery Act activities contained errors.

We recommend that the Director of the Greensboro Office of Public Housing require the Authority to develop, implement, and enforce written procedures for its procurement, Recovery Act reporting, and obligations. The Authority must also provide support showing that $459,499 in contracts was awarded in accordance with procurement regulations and that $66,730 in obligations and $215,619 in expenditures met HUD’s requirements.