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To meet the Office of Inspector General’s (OIG) objective to review funds provided under the American Recovery and Reinvestment Act of 2009 and at HUD's suggestion, we reviewed the Housing Authority of the City of Mineral Wells Public Housing Capital Fund Stimulus (formula) Recovery Act funded activities. Specifically, our objectives were to determine whether the Authority followed the Recovery Act rules and regulations when obligating and expending its Recovery Act capital funds and reported Recovery Act funds, as required.

Although the Authority used its Recovery Act grant funds for eligible activities, it had errors in its obligations, procurements, expenditures, and reporting. The errors occurred because the Authority was not familiar with some Recovery Act requirements. As a result, it spent $6,400 that it did not obligate or expense in a timely manner and an additional $7,745 that it did not properly expense. In addition, the Authority’s late and inaccurate reporting defeated the transparency goals of the Recovery Act.

We recommend that the Director of HUD's Office of Public Housing require the Authority to repay $6,400 that it did not obligate in a timely manner and repay $7,745 that it improperly expensed or provide other eligible costs. HUD should return the ineligible amounts to the U.S. Treasury. HUD should also ensure that the Authority has the appropriate training and HUD assistance regarding procurement for capital projects.