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We audited the State of Florida’s Community Development Block Grant Disaster Recovery (CDBG-DR) program because the State was awarded more than $107 million to recover from the 2008 natural disasters and to undertake activities and long-term strategies that focus on reducing future natural disasters.  Further, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, had not audited the State since 2006.  Our audit objective was to determine whether the State administered its CDBG-DR program in accordance with applicable HUD requirements.  Specifically, we wanted to determine whether the State used funds to assist eligible properties and beneficiaries.

The State did not adequately administer its CDBG-DR program in accordance with HUD requirements because it did not demonstrate whether (1) 93 assisted units with expenditures of more than $2 million were impacted by the 2008 declared disasters, (2) a property acquired for $63,076 was in a high-risk area, (3) a property met the low- and moderate-income housing national objective, and (4) 9 beneficiaries with expenditures of $220,589 were income eligible to receive assistance.
We recommend that HUD require the State to provide support regarding the eligibility of funds used or reimburse HUD more than $2 million from non-Federal funds.  The State should also develop policies and procedures to ensure that sufficient eligibility documentation is maintained.