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The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the State of Wyoming’s Community Development Block Grant (CDBG) program run by the Wyoming Business Council.  Our audit objective was to determine whether the State reimbursed only approved costs, its grant agreements contained all required language, it properly monitored its projects, and it ensured that projects met the national objective in accordance with HUD’s CDBG requirements.

The State reimbursed two subrecipients for costs that it had not formally approved.  Its grant agreements lacked the required language on program income.  It did not adequately monitor the projects it funded.  Finally, it funded a project without ensuring that it would meet the national objective.

We recommend that the Director of HUD’s Denver Office of Community Planning and Development require the Wyoming Business Council to (1) reimburse from non-Federal funds the $105,514 spent on ineligible costs and provide support for the $266,072 spent on projects or reimburse any ineligible amount from non-Federal funds, (2) ensure that future grant agreements meet requirements, (3) implement a procedure for conducting onsite monitoring over the course of each project, and (4) provide support for the $500,000 spent on one project or reimburse any ineligible amount from non-Federal funds.