We conducted an annual limited scope review of the U.S. Department of Housing and Urban Development's (HUD) compliance with Presidential Executive Order (EO) 13520, Reducing Improper Payments. HUD was in general compliance with EO 13520 annual reporting requirements. We concluded that HUD's ongoing efforts in mitigating the risks of improper payments in the rental housing assistance programs were progressing in a positive direction.…

We audited the U.S. Department of Housing and Urban Development's ability to comply with the requirements of Office of Management and Budget (OMB) Circular A-127, which was revised in January 2009 and became effective on October 1, 2009. We conducted the audit as a component of the audit of HUD's consolidated financial statements for fiscal year 2010 under the Chief Financial Officer's Act of 1990. We found that HUD did not fully…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General conducted a review of the City of Columbus, GA’s (City) Neighborhood Stabilization Program (NSP1) to determine whether the City had demonstrated the capacity to properly obligate all NSP1 grant funds and at least 25 percent of the grant toward occupants with incomes below 50 percent of the median income in the locality (LH25) set-aside by the September…

In this report, we provide additional details to supplement our Report on the U.S. Department of Housing and Urban Development's (HUD) Fiscal Years 20010 and 2009 Financial Statements, which is included in HUD's Fiscal Year 2010 Agency Financial Report. In OIG's opinion, based on our audit and the reports of other auditors, the financial statements were presented fairly, in all material respects, in conformity with accounting…

We audited the City of Bayonne, NJ's (City) Community Development Block Grant (CDBG) economic development activities in response to a complaint (HL- 09-1015) that contained four allegations. Our audit objectives were to determine whether the City (1) disbursed CDBG economic development funds efficiently and effectively in accordance with its submission to HUD and with the applicable rules and regulations, (2) used CDBG economic development…

We audited the City of Scranton, PA’s (City) Community Development Block Grant (CDBG) program. We selected the City for audit because of the size of its program, its high U.S. Department of Housing and Urban Development (HUD) risk analysis score, and a citizen’s complaint alleging misuse of HUD funds. The objectives of the audit were to determine whether the City (1) maintained records and documentation to identify the source and application…

We audited the Pennsylvania Housing Finance Agency (Agency) because it received $95.1 million in Tax Credit Assistance Program (Program) funds under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Agency received the largest amount of Program funds awarded in Region III. Our objective was to determine whether the Agency administered its Program in accordance with Recovery Act and applicable U.S. Department of Housing and…

This report presents the results Clifton Gunderson's (CG) audit of the fiscal year 2010 and 2009 financial statements of the Federal Housing Administration (FHA). The report on FHA's financial statements, dated November 3, 2010 includes an unqualified opinion on FHA's financial statements. The report contains two significant deficiencies in FHA's internal controls and one reportable instance of noncompliance with laws and…

We audited the Virginia Housing Development Authority (Authority) because it received $44.2 million in Tax Credit Assistance Program (Program) funds under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Authority received the second largest amount of Program funds awarded in Region III. Our objective was to determine whether the Authority administered its Program in accordance with Recovery Act and applicable U.S.…

We audited the Homelessness Prevention and Rapid Re-Housing Program (program) at the City of Los Angeles Housing Department (Department) because it was the second largest single program grant awarded within California under the American Recovery and Reinvestment Act of 2009 (Recovery Act). In addition, our audit is part of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) national mandate to monitor…

HUD OIG audited the Community Development Block Grant program (program) administered by the City of Deerfield Beach, FL (City). The objective of the audit was to determine whether the City administered its program in accordance with applicable U.S. Department of Housing and Urban Development (HUD requirements. We selected the City for review because it had come under increased scrutiny when various newspaper articles and reviews highlighted…

HUD OIG audited the Community Development Block Grant program (program) administered by the City of Deerfield Beach, FL (City). The objective of the audit was to determine whether the City administered its program in accordance with applicable U.S. Department of Housing and Urban Development (HUD requirements. We selected the City for review because it had come under increased scrutiny when various newspaper articles and reviews highlighted…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of East St. Louis, Illinois’ (City) Community Development Block Grant (Block Grant) program. Our objective was to determine whether the City properly verified the eligibility of Block Grant-funded housing rehabilitation recipients. We found that the City awarded Block Grant funds to 143 recipients without adequately verifying their…

HUD OIG conducted this audit based on a confidential complaint submitted through the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) hotline. The complaint alleged several improprieties involving the County’s NSP and HOME programs. Our objectives were to determine whether the County (1) complied with requirements in the procurement, award, and execution of its NSP administrative contract and (2)…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General conducted a review of the City of Augusta, GA’s (City) Neighborhood Stabilization Program (NSP1) to determine whether the City had demonstrated the capacity to properly obligate all NSP1 grant funds and at least 25 percent of the grant toward occupants with incomes below 50 percent of the median income in the locality (LH25) set-aside by the September 5…

HUD OIG reviewed the Louisville/Jefferson County Metropolitan Government’s (Louisville Metro) Neighborhood Stabilization Program (program). We selected Louisville Metro for review based on its low percentage of obligations and the approaching September 20, 2010, deadline for obligating funds. Our objective was to evaluate Louisville Metro’s use of program funding, including the propriety of its activities, obligations, expenditures, and…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the City and County of Denver’s (City) Neighborhood Stabilization Program I (NSP I). We selected the City for review based on our risk assessment considering the amount of Housing and Economic Recovery Act of 2008 (HERA) and American Recovery and Reinvestment Act of 2009 NSP funds it received and expended along with other evaluative factors. The…