The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Vancouver Housing Authority to determine whether it was managing and reporting its three awarded Recovery Act Capital Fund grants in accordance with requirements. We selected the Authority because it was part of our annual audit plan, which includes reviewing funds provided under the American Recovery and Reinvestment Act of 2009.
The Authority did not manage the construction funded with Recovery Act Capital Fund grants in accordance with requirements. It paid for renovations that did not comply with Uniform Federal Accessibility Standards, for a roof that did not meet contract requirements, and for contracted work that was not completed. The Authority also approved change orders that did not meet U.S. Department of Housing and Urban Development requirements and allowed contractors to purchase goods manufactured outside the United States. In addition, the Authority did not accurately report the grant funds received or invoiced and the number of jobs created or retained in FederalReporting.gov.
We recommend that HUD require the Authority to correct the renovation deficiencies or repay as much as $1.26 million in grant funds. In addition, HUD should require the Authority to correct the amount of grant funds received or invoiced entered into FederalReporting.gov and develop and implement procedures to effectively monitor grant funds.