In accordance with our goal to review funds provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act), we audited the Housing Authority of the City of Wichita Falls’ Public Housing Capital Fund Stimulus (formula) Recovery Act-funded activities. Specifically, our objectives were to determine whether the Authority followed Recovery Act rules and regulations when obligating and expending its Recovery Act capital funds and reported Recovery Act funds as required.

Generally the Authority followed Recovery Act rules and regulations with two minor exceptions. It properly used the formula grant funds to expand its extensive capital projects already underway. It met the time deadlines and provided support for both obligations and expenditures associated with the formula grant. It also reported its use of the funds in a timely manner. However, the Authority relied on its architect’s statement that only one asbestos monitor could provide needed services, resulting in a $16,600 contract being awarded without adequate competition. In addition, it did not ensure that water heaters, which cost $16,799, met Federal Energy Management Program requirements before purchase. These minor exceptions occurred because the Authority did not follow or was not aware of the Federal requirements.

We recommend that the Director of the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing require the Authority to provide support for the $16,600 spent for asbestos monitoring and the $16,799 spent for noncompliant water heater purchases. If the Authority cannot support the costs, HUD should return the unsupported cost to the U.S. Treasury.